1. The Road not Taken: Competition and the R&D Portfolio (RAND Journal of Economics, 2016, Vol. 47(2), pp. 433–460)
R&D is not just about investing resources, it is also about the choice of research projects. This paper looks at how market competition affects the choice of research projects and provides insights for merger regulation.
2. Optimal Search from Multiple Distributions with Infinite Horizon (Economics Letters, 2018, Vol. 164, pp. 15-18; with Jean-Michel Benkert and Georg Nöldeke)
This note characterizes optimal search when the agent can choose the distribution from which the search outcomes are realized.
In many settings the principal needs to rely on a reviewer in order to provide incentives to agents for exerting effort. If the reviewer is biased (for example the reviewer could be lenient), we show that the optimal delegation mechanism is a contest.
We show that an interim-prize contest, where a final prize is paid when the contest ends but an interim prize is paid in every period until the end, is optimal.
This paper studies the optimal contest design in a situation where contestants choose an approach to innovation. The optimal contest is something we call a bonus tournament.