Risk sharing is becoming an increasingly popular instrument to regulate the price of new drugs. In the recent past …, forms of risk-sharing agreements between the public regulator and the industry have been proposed and implemented, but their … and expected profit of several risk-sharing agreements between a regulator and the industry, based on the ex post …

We view innovation investment as a real option and explore the implications of ambiguity (Knightian uncertainty) and … risk for innovation decisions. Our analysis uses a risk measure and a new outcome-independent measure of ambiguity. We find …. We also find a significant positive effect of risk on R&D, but the effect of risk on patents and citations is negative …