Speaker: Dr Jun Xiao
Affiliation: University of Melbourne
Online via Zoom: https://uqz.zoom.us/j/82603079317
Abstract
This paper studies matching funds in innovation. We find a profit-maximizing company tends to underinvest in innovation even if it faces no competition. To maximize welfare, a social planner chooses a ratio r so that it provides $r for every dollar the company contributes. In other words, it matches a fraction of the company's contribution. We find that the efficient matching ratio (that maximizes the welfare) should be lower for more difficult innovation challenges, with or without competition among the researchers.
About the presenter's meeting
If you would like to meet with Dr Xiao, please contact Dr Priscilla Man
About Economic Theory Seminar Series
A seminar series designed specifically for economic theory researchers to network and collaborate.
