Innovation, Competition, and Investment Timing

AbstractIn our model multiple innovators compete against each other by submitting investment proposals to an investor. The investor chooses the least expensive proposal and the timing of the investment. Innovators privately learn the cost of investing. The investor has to compensate the innovators for their reservation wages, but competition makes screening easier and helps to erode innovators’ informational rents. Consequently, competition leads to faster innovation, because the investor has less need to delay expensive investments. With an endogenous number of innovators investment timing becomes first best.Received June 5, 2013; accepted February 26, 2016 by Editor Paolo Fulghieri.

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Innovation, Competition, and Investment Timing

SSRN Electronic Journal ◽

10.2139/ssrn.2153713 ◽

2012 ◽

Author(s):

Yrjo Koskinen ◽

Joril Maeland

Keyword(s):

Investment Timing ◽

Innovation Competition

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Investment Timing and Incentive Costs*

Review of Financial Studies ◽

10.1093/rfs/hhz051 ◽

2019 ◽

Vol 33 (1) ◽

pp. 309-357 ◽

Cited By ~ 6

Author(s):

Sebastian Gryglewicz ◽

Barney Hartman-Glaser

Keyword(s):

Moral Hazard ◽

Real Option ◽

Natural Source ◽

Investment Timing ◽

Editorial Decision ◽

Incremental Form ◽

The Cost

Abstract We analyze how the costs of smoothly adjusting capital, such as incentive costs, affect investment timing. In our model, the owner of a firm holds a real option to increase a lumpy form of capital and can also smoothly adjust an incremental form of capital. Increasing the cost of incremental capital can delay or accelerate investment in lumpy capital. Incentive costs due to moral hazard are a natural source of costs for the accumulation of incremental capital. When moral hazard is severe, delaying investment in lumpy capital is costly, and overinvesting relative to the first-best case is optimal. Received January 24, 2017; editorial decision March 15, 2019 by Editor Itay Goldstein.

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Deferments and the Relative Cost of Conscription

The B E Journal of Economic Analysis & Policy ◽

10.2202/1935-1682.2644 ◽

2010 ◽

Vol 10 (1) ◽

Cited By ~ 2

Author(s):

Tim Perri

Keyword(s):

World War Ii ◽

Social Cost ◽

Social Benefits ◽

Relative Cost ◽

World War ◽

Reservation Wages ◽

Military Conscription ◽

The Cost ◽

The Military ◽

The U.S

Abstract A model of military conscription with costly deferments is developed. Deferments may enable the induction of only those with the lowest reservation wages, avoiding the usual misallocation of resources with conscription versus a volunteer military. With costly deferments, the tradeoff between conscription and a volunteer military involves the cost of deferments with the former and the higher deadweight cost of taxation with the latter. Among the results are: 1) conscription is socially preferable to a volunteer military only if a large percentage of eligible individuals is demanded by the military; 2) if conscription is used when it is socially cheaper than a volunteer military, welfare is improved if deferments have lower social benefits; and 3) ignoring other costs of conscription (e.g., higher turnover and reduced investment in human capital), the U.S. in World War II may have been near the point at which conscription and a volunteer military were of equal social cost.

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Reservation Wages and the Cost of Unemployment

Economica ◽

10.2307/2554041 ◽

1989 ◽

Vol 56 (222) ◽

pp. 225 ◽

Cited By ~ 26

Author(s):

Stephen R. G. Jones

Keyword(s):

Reservation Wages ◽

The Cost

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Innovation, Competition, and Investment Timing

SSRN Electronic Journal ◽

10.2139/ssrn.2023016 ◽

2012 ◽

Author(s):

Joril Maeland ◽

Yrjo Koskinen

Keyword(s):

Investment Timing ◽

Innovation Competition

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The IBM-PC in electron microscopy

Proceedings, annual meeting, Electron Microscopy Society of America ◽

10.1017/s0424820100165525 ◽

1996 ◽

Vol 54 ◽

pp. 612-613

Author(s):

James F. Mancuso

Keyword(s):

Head Start ◽

Image Acquisition ◽

Cost Effective ◽

Financial Applications ◽

Number Of Factors ◽

Instrument Control ◽

The Cost ◽

Training And Support ◽

Control Image ◽

Ibm Pc

IBM PC compatible computers are widely used in microscopy for applications ranging from control to image acquisition and analysis. The choice of IBM-PC based systems over competing computer platforms can be based on technical merit alone or on a number of factors relating to economics, availability of peripherals, management dictum, or simple personal preference.IBM-PC got a strong “head start” by first dominating clerical, document processing and financial applications. The use of these computers spilled into the laboratory where the DOS based IBM-PC replaced mini-computers. Compared to minicomputer, the PC provided a more for cost-effective platform for applications in numerical analysis, engineering and design, instrument control, image acquisition and image processing. In addition, the sitewide use of a common PC platform could reduce the cost of training and support services relative to cases where many different computer platforms were used. This could be especially true for the microscopists who must use computers in both the laboratory and the office.

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New Feasible Concepts of Aberration Correction for Realizing High-Resolution Electron Microscopes

Proceedings, annual meeting, Electron Microscopy Society of America ◽

10.1017/s0424820100179762 ◽

1990 ◽

Vol 48 (1) ◽

pp. 202-203

Author(s):

H. Rose

Keyword(s):

Spherical Aberration ◽

Wave Length ◽

Electron Wave ◽

Optical Lens ◽

Resolution Electron ◽

Rotationally Symmetric ◽

Electron Microscopes ◽

The Cost ◽

Imaging Performance ◽

Acceleration Voltage

The imaging performance of the light optical lens systems has reached such a degree of perfection that nowadays numerical apertures of about 1 can be utilized. Compared to this state of development the objective lenses of electron microscopes are rather poor allowing at most usable apertures somewhat smaller than 10-2 . This severe shortcoming is due to the unavoidable axial chromatic and spherical aberration of rotationally symmetric electron lenses employed so far in all electron microscopes.The resolution of such electron microscopes can only be improved by increasing the accelerating voltage which shortens the electron wave length. Unfortunately, this procedure is rather ineffective because the achievable gain in resolution is only proportional to λ1/4 for a fixed magnetic field strength determined by the magnetic saturation of the pole pieces. Moreover, increasing the acceleration voltage results in deleterious knock-on processes and in extreme difficulties to stabilize the high voltage. Last not least the cost increase exponentially with voltage.

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