Speaker: Dr Jun Xiao

Affiliation: University of Melbourne

Online via Zoom: https://uqz.zoom.us/j/82603079317


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

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