Bias in Market R&D Portfolios

Detalhes bibliográficos
Autor(a) principal: Cabral, Luís M. B.
Data de Publicação: 1992
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10362/85864
Resumo: Based on a simple "contest" model of product innovation, we provide a necessary and sufficient condition for the market to be biased against risky R&D projects. We find that, in accordance with conventional wisdom and contrary to much of the previous theoretical literature, market competition implies an equilibrium level of risk which is too low from society's standpoint. The intuition for the result in terms of the "business stealing" effect is provided.
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spelling Bias in Market R&D PortfoliosR&D competitionOligopolyBased on a simple "contest" model of product innovation, we provide a necessary and sufficient condition for the market to be biased against risky R&D projects. We find that, in accordance with conventional wisdom and contrary to much of the previous theoretical literature, market competition implies an equilibrium level of risk which is too low from society's standpoint. The intuition for the result in terms of the "business stealing" effect is provided.Nova SBERUNCabral, Luís M. B.2019-10-30T14:59:23Z1992-071992-07-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10362/85864engCabral, Luís, Bias in Market R&D Portfolios (July, 1992). FEUNL Working Paper Series No. 188info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-03-11T04:38:37Zoai:run.unl.pt:10362/85864Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:36:39.120666Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Bias in Market R&D Portfolios
title Bias in Market R&D Portfolios
spellingShingle Bias in Market R&D Portfolios
Cabral, Luís M. B.
R&D competition
Oligopoly
title_short Bias in Market R&D Portfolios
title_full Bias in Market R&D Portfolios
title_fullStr Bias in Market R&D Portfolios
title_full_unstemmed Bias in Market R&D Portfolios
title_sort Bias in Market R&D Portfolios
author Cabral, Luís M. B.
author_facet Cabral, Luís M. B.
author_role author
dc.contributor.none.fl_str_mv RUN
dc.contributor.author.fl_str_mv Cabral, Luís M. B.
dc.subject.por.fl_str_mv R&D competition
Oligopoly
topic R&D competition
Oligopoly
description Based on a simple "contest" model of product innovation, we provide a necessary and sufficient condition for the market to be biased against risky R&D projects. We find that, in accordance with conventional wisdom and contrary to much of the previous theoretical literature, market competition implies an equilibrium level of risk which is too low from society's standpoint. The intuition for the result in terms of the "business stealing" effect is provided.
publishDate 1992
dc.date.none.fl_str_mv 1992-07
1992-07-01T00:00:00Z
2019-10-30T14:59:23Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
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status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10362/85864
url http://hdl.handle.net/10362/85864
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Cabral, Luís, Bias in Market R&D Portfolios (July, 1992). FEUNL Working Paper Series No. 188
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
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