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The Optimal Management of Research Portfolios

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  • Bardsley, P.

Abstract

Risky research projects are, other things being equal, intrinsically harder to monitor than those which are less risky. It is shown, using agency theory that a standard cost benefit analysis which ignores the agency problem will introduce a bias towards excessively risky projects.

Suggested Citation

  • Bardsley, P., 1997. "The Optimal Management of Research Portfolios," Department of Economics - Working Papers Series 549, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:549
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    References listed on IDEAS

    as
    1. Bengt Holmstrom, 1979. "Moral Hazard and Observability," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
    2. Jock R. Anderson & Philip G. Pardey & Johannes Roseboom, 1994. "Sustaining growth in agriculture: a quantitative review of agricultural research investments," Agricultural Economics, International Association of Agricultural Economists, vol. 10(2), pages 107-123, April.
    3. George W. Norton & Jeffrey S. Davis, 1981. "Evaluating Returns to Agricultural Research: A Review," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 685-699.
    4. Grossman, Sanford J & Hart, Oliver D, 1983. "An Analysis of the Principal-Agent Problem," Econometrica, Econometric Society, vol. 51(1), pages 7-45, January.
    5. Bardsley, P., 1997. "Multiple Action Agency: An Application to the Management of Scientific Research," Department of Economics - Working Papers Series 550, The University of Melbourne.
    6. Kenneth J. Arrow & Robert C. Lind, 1974. "Uncertainty and the Evaluation of Public Investment Decisions," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 3, pages 54-75, Palgrave Macmillan.
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    Citations

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    Cited by:

    1. Stoneham, Gary & Strappazzon, Loris & Soligo, James & Fisher, Bill & Eigenraam, Mark & Wimalasuriya, Rukman, 2000. "Evaluation Of Research Activities," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123645, Australian Agricultural and Resource Economics Society.
    2. Susan Xu Tang & Yongsheng Xu, 2024. "Multiple prizes for multiple tasks: externalities and the optimal design of tournaments," Journal of Economics, Springer, vol. 142(3), pages 291-303, August.
    3. X. Zhao & J.D. Mullen & G.R. Griffith & R.R. Piggott & W.E. Griffiths, 2002. "The Economic Incidence of R&D and Promotion Investments in the Australian Beef Industry," Monash Econometrics and Business Statistics Working Papers 16/02, Monash University, Department of Econometrics and Business Statistics.
    4. Kingwell, Ross S., 1999. "Institutional and social influences on R&D evaluation in agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(1), pages 1-14, March.
    5. Omuru, Eric & Kingwell, Ross S., 2005. "Funding and Managing Agricultural Research in a Developing Country: a Papua New Guinea case study," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137938, Australian Agricultural and Resource Economics Society.
    6. Bert Lenaerts & Yann de Mey & Matty Demont, 2022. "Revisiting multi‐stage models for upstream technology adoption: Evidence from rapid generation advance in rice breeding," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 277-300, February.

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    More about this item

    Keywords

    MANAGEMENT; RESEARCH AND DEVELOPMENT;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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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