On contracting for uncertain R&D
Article Abstract:
Auctions of research and development (R&D) contracts when the outcome of research is uncertain has been examined using a two-stage model. The latter is used in simulating how a principal, the government agency, selects the worthiest agent through an auction and writes an incentive contract with the winning agent to share risks. Results indicate that generally superior incentive contracts may not be the best solution in R&D contracts. Principals opt for cost-plus contracts for large R&D projects or rising innovation benefits. However, they shift to fixed-price contracts when the number of bidders increases.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1999
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Uncertain outlays in time-to-build problems
Article Abstract:
Considering uncertainty in investment costs on projects with uncertain time-to-build, such as some R & D undertakings, lessens the impact of decreased completed project value and the possibility of underinvestment. However, uncertain investment outlays also result in uncertain time-to-build which adds value to the project and provides additional investment incentives. This uncertainty also allows long-term projects to absorb larger value reduction before the stoppage of investments occur.
Publication Name: Managerial & Decision Economics
Subject: Economics
ISSN: 0143-6570
Year: 1996
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Jumbo Loans, Elephantine Problems
Article Abstract:
Nigeria is coming to Europe to discuss payment of its debt. Problem areas include trade arrears, medium-and long-term borrowing, and former refinancing. Graphs illustrate Nigeria's debt to western banks.
Publication Name: Economist
Subject: Economics
ISSN: 0013-0613
Year: 1984
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