The efficiency wage model of Shapiro and Stiglitz (American Economic Review 74: 433-444, 1984) has not always been confirmed by empirical investigations. This could be due to informational problems. Reformulating the Shapiro and Stiglitz model as a sequential game, this paper examines the...

Starting from the premise that firms are distinct in terms of their capacity to create radical product innovations, the present paper attempts to explore how firms choose between different forms of R&D cooperation and their consequences for social welfare. It studies a duopolistic market, where...

There is an emerging body of literature that examines how pro-poor innovations should be created and what business models should accompany them. However, there is little on actual implementation practises and the present paper attempts to fill this void by analyzing the findings of the...