We examine the optimal design of two-stage research and development (R&D) joint ventures. At the second stage, researchers choose R&D effort levels independently in an attempt to achieve an innovation. In the first stage, researchers have an opportunity to share endowments of productive...

Abstract We model economic decisions as stemming from urges. The magnitude of the urge is a function of previous consumption. Welfare gains from satisfying an urge vary with the nature of the urge. An urge is "dysfuntional" if people are willing to incur costs to stop themselves from gratifying...