Race meets bargaining in product development

Emin Karagözoğlu, Kerim Keskin and Çağrı Sağlam

Managerial and Decision Economics, 2021, vol. 42, issue 3, 702-709

Abstract: We study product development in a firm, utilizing a multistage contest model (i.e., race) with an endogenous length (with one stage or two stages) between two workers. We model the payments to workers using the normatively appealing Nash bargaining solution. We analytically characterize the equilibrium effort levels of workers and describe the conditions under which a full‐fledged final product (as opposed to, say, a prototype) is developed. We also provide an answer to the firm's problem of optimal incentive provision.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/mde.3266

Related works:
Working Paper: Race Meets Bargaining in Product Development (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:42:y:2021:i:3:p:702-709

Access Statistics for this article

Managerial and Decision Economics is currently edited by Antony Dnes

More articles in Managerial and Decision Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().