We examine a game-theoretic model of a two-firm R&D race in which expenditures on R&D and the concomitant increase in experience/learning enable the firms to increase their probability of discovering an invention. The learning process is stochastic. It generates a unique subgame-perfect...

type="main" <p>We study the interaction between a group of agents who exert effort to complete a project and a manager who chooses its objectives. The manager has limited commitment power so that she can commit to the objectives only when the project is sufficiently close to completion. We show...</p>