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Improving the Peer review process: Capturing more information and enabling high-risk/high-return research

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  • Linton, Jonathan D.

Abstract

The Black-Scholes model and the peer-review process are combined to offer more insight into the apparent value of research projects. In doing so high-risk/high-return research is found to be more attractive and financially rational than under the traditional peer review approach. In other words projects with the highest disagreement amongst panel members should sometimes be selected even though the average panel score may not be the highest under consideration. This finding is important as it improves the existing peer review process by utilizing not only the mean value of peer reviews, but also their standard deviation. This note also opens the consideration of the potential of Real Options approaches for decision support for project selection and management of research.

Suggested Citation

  • Linton, Jonathan D., 2016. "Improving the Peer review process: Capturing more information and enabling high-risk/high-return research," Research Policy, Elsevier, vol. 45(9), pages 1936-1938.
    • Handle: RePEc:eee:respol:v:45:y:2016:i:9:p:1936-1938
    DOI: 10.1016/j.respol.2016.07.004
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    References listed on IDEAS

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    1. J Britt Holbrook & Robert Frodeman, 2011. "Peer review and the ex ante assessment of societal impacts," Research Evaluation, Oxford University Press, vol. 20(3), pages 239-246, September.
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    4. Wade D. Cook & Boaz Golany & Moshe Kress & Michal Penn & Tal Raviv, 2005. "Optimal Allocation of Proposals to Reviewers to Facilitate Effective Ranking," Management Science, INFORMS, vol. 51(4), pages 655-661, April.
    5. Rüdiger Mutz & Lutz Bornmann & Hans-Dieter Daniel, 2015. "Testing for the fairness and predictive validity of research funding decisions: A multilevel multiple imputation for missing data approach using ex-ante and ex-post peer evaluation data from the Austr," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 66(11), pages 2321-2339, November.
    6. Bornmann, Lutz & Daniel, Hans-Dieter, 2007. "Gatekeepers of science—Effects of external reviewers’ attributes on the assessments of fellowship applications," Journal of Informetrics, Elsevier, vol. 1(1), pages 83-91.
    7. Black, Fischer & Scholes, Myron S, 1973. "The Pricing of Options and Corporate Liabilities," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 637-654, May-June.
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    Cited by:

    1. Elise S. Brezis & Aliaksandr Birukou, 2020. "Arbitrariness in the peer review process," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(1), pages 393-411, April.
    2. Thomas Feliciani & Junwen Luo & Lai Ma & Pablo Lucas & Flaminio Squazzoni & Ana Marušić & Kalpana Shankar, 2019. "A scoping review of simulation models of peer review," Scientometrics, Springer;Akadémiai Kiadó, vol. 121(1), pages 555-594, October.
    3. Chiara Franzoni & Paula Stephan & Reinhilde Veugelers, 2022. "Funding Risky Research," Entrepreneurship and Innovation Policy and the Economy, University of Chicago Press, vol. 1(1), pages 103-133.

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