Miyagiwa, Kaz; Sissoko, Aminata - Department of Economics, Florida International University - 2013
A research joint venture (RJV) faces a serious free-rider problem because its participants¡¯ contributions are mostly unobservable. We first present a model that shows that a RJV solves this problem by pre-committing to its termination date. Our analysis shows that there is an optimal...