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Radical Innovation and Network Evolution

Phlippen, Sandra; Riccaboni, Massimo - Tinbergen Institute - 2007

This paper examines how a radical technological innovation affects alliance formation of firms and subsequent network structures. We use longitudinal data of interfirm R&D collaborations in the biopharmaceutical industry in which a new technological regime is established. Our findings suggest...

Persistent link: https://www.econbiz.de/10005137005

Collusion through Joint R&D: An Empirical Assessment

Duso, Tomaso; Roeller, Lars-Hendrik; Seldeslachts, Jo - Tinbergen Institute - 2010

This paper tests whether upstream R&D cooperation leads to downstream collusion. We consider an oligopolistic setting where firms enter in research joint ventures (RJVs) to lower production costs or coordinate on collusion in the product market. We show that a sufficient condition for...

Persistent link: https://www.econbiz.de/10008692325

Price-setting Power versus Private Information

Sloof, Randolph - Tinbergen Institute - 2003

This paper investigates the extent of the holdup underinvestment problem in a buyer-seller relationship in which the seller has private information about his alternative trading opportunities. Theory predicts that, compared with a situation in which outside options are publicly observed, the...

Persistent link: https://www.econbiz.de/10005137223

A Real Options Perspective on R&D Portfolio Diversification

Bekkum, Sjoerd van; Pennings, Enrico; Smit, Han - Tinbergen Institute - 2007

This paper shows that the presence of conditional staging in R&D (Research & Development) has a critical impact on portfolio risk, and changes diversification arguments when a portfolio is constructed. When R&D projects exhibit option-like characteristics, correlation between projects plays a...

Persistent link: https://www.econbiz.de/10005016277

Subsidizing the Adoption of Energy-Saving Technologies: Analyzing the Impact of Uncertainty, Learning and Maturation

Groot, Henri L.F. de; Mulder, Peter; Soest, Daan P. van - Tinbergen Institute - 2004

As part of the Kyoto Protocol, many countries have committed themselves to substantially reduce the emission of greenhouse gases within a politically imposed time constraint. Investment subsidies can be an important instrument to stimulate the adoption of energy-saving technologies to achieve...

Persistent link: https://www.econbiz.de/10005136918

Pros and Cons of ‘Backing Winners’ in Innovation Policy

Butter, Frank A.G. den; Jo, Seung-gyu - Tinbergen Institute - 2009

In the economics profession there is a fierce debate whether industrial and innovation policy should be targeted to specific sectors or firms. This paper discusses the welfare effects of such targeted policies from the perspective of strategic game theory of the firm. A theoretical case for...

Persistent link: https://www.econbiz.de/10005136977

A Monte Carlo Comparison between the Free Cash Flow and Discounted Cash Flow Approaches

Akalu, Mehari Mekonnen; Turner, Rodney - Tinbergen Institute - 2002

One of the debates in the capital budgeting model selection is between the free cash flow and DCF methods. In this paper an attempt is made to compare SVA against NPV model based on Monte Carlo simulations. Accordingly, NPV is found less sensitive to value driver variations and has got higher...

Persistent link: https://www.econbiz.de/10005137022

Evaluating the Capacity of Standard Investment Appraisal Methods

Akalu, Mehari Mekonnen - Tinbergen Institute - 2002

The survey findings indicate the existence of gap between theory and practice of capital budgeting. Standard appraisal methods have shown a wider project value discrepancy, which is beyond and above the contingency limit. In addition, the research has found the growing trend in the use of value...

Persistent link: https://www.econbiz.de/10005137133

Auctions under Payoff Uncertainty: The Case with Heterogeneous Bidder-Aversion to Downside Risk

Hu, Audrey; Zou, Liang - Tinbergen Institute - 2008

This paper characterizes the optimal first-price auction (FPA) and second-price auction (SPA) for selling rights …

Persistent link: https://www.econbiz.de/10005136943

Emotions and Economic Shocks in a First-Price Auction

Bosman, Ronald; Riedl, Arno - Tinbergen Institute - 2003

We investigate experimentally whether emotions affect bidding behavior in a first price auction. To induce emotions, we … confront subjects after a first auction series with a positive or negative random economic shock. We then explore the relation … between emotions and bidding behavior in a second auction series. Our main results are: (i) the economic shock has a …

Persistent link: https://www.econbiz.de/10005137109