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Incentive Issues In R&D Consortia: Insights From Applied Game Theory

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  • ERAN BINENBAUM

Abstract

This article sketches how insights from applied game theory can be applied to Research and Development (R&D) consortia using a case study on an international plant breeding consortium. The insights jointly comprise a new “logic of collective action in R&D,” which is inspired by Olson’s Logic of Collective Action but goes beyond it. We analyze R&D consortia as institutions that respond to a variety of incentive problems which are obstacles to realizing the benefits of cooperation that arise due to the public goods nature of outputs, complementarities of inputs, and economies of scale and scope. Additionally, we sketch a “big‐picture” consortium game, which abstracts from specific incentive issues. (JEL B41, D02, H41, O31, O32)

Suggested Citation

  • Eran Binenbaum, 2008. "Incentive Issues In R&D Consortia: Insights From Applied Game Theory," Contemporary Economic Policy, Western Economic Association International, vol. 26(4), pages 636-650, October.
    • Handle: RePEc:bla:coecpo:v:26:y:2008:i:4:p:636-650
    DOI: 10.1111/j.1465-7287.2008.00097.x
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    More about this item

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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