Agenda

25 Mar 2022 17:30

Elliot Lipnowski - Curtailing Competition

online

Friday at 5.30pm
Elliot Lipnowski (Columbia University) presenting at NEAT seminars
 

Paper presented: "Curtailing Competition"

Abstract
We study project development and selection by an organization whose mem- bers prefer different projects. The organization faces a trade-off between fostering collaboration among its members and responding efficiently to projects’ evolution. Choosing the most ex-post profitable project under- mines members’ motive to collaborate, causing ex-ante inefficiency. We show a time-varying threshold rule is uniquely optimal, with the organiza- tion choosing the first project to achieve a sufficient lead. The optimum thus entails an early phase of uninterrupted competition, always followed by a permanent collaborative regime. We develop a new martingale-based solution approach, using weak solutions to construct the optimal contract.

The seminar can be attended connecting to ZOOM: https://unive.zoom.us/j/89935366405

Language

The event will be held in English

Organized by

Department of Economics (NEATSeminars; CVera)

Link

https://unive.zoom.us/j/89935366405

Search in the agenda