Abstract

http://ssrn.com/abstract=2120974
 
 

References (14)



 


 



Picking Winners in Rounds of Elimination


Suzanne Scotchmer


University of California - Department of Economics ; School of Law, University of California, Berkeley; National Bureau of Economic Research (NBER)

Junjie Zhou


Shanghai University of Finance and Economics

July 30, 2012


Abstract:     
We study the optimal way to select projects or agents in environments where information arrives in well defined rounds. Examples include academic environments where review periods are set by policy, aptitude tests such as those given by software developers to programmers applying for jobs, venture capital protocols where the rounds of funding may be stopped before the project is complete, and FDA testing, where drugs can be dropped at well defined junctures. Sequential rounds of elimination reduce the cost of selection, but also reduce the average quality of surviving projects. We characterize the nature of the optimal screening process with and without "memory."

Number of Pages in PDF File: 37

Keywords: log supermodularity, rounds of elimination, picking winners, screening

JEL Classification: C, L2

working papers series





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Date posted: September 1, 2012  

Suggested Citation

Scotchmer, Suzanne and Zhou, Junjie, Picking Winners in Rounds of Elimination (July 30, 2012). Available at SSRN: http://ssrn.com/abstract=2120974 or http://dx.doi.org/10.2139/ssrn.2120974

Contact Information

Suzanne Scotchmer (Contact Author)
University of California - Department of Economics ( email )
Berkeley, CA 94720-3880
United States
510-643-8562 (Phone)
School of Law, University of California, Berkeley ( email )
215 Boalt Hall
Berkeley, CA 94720-7200
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Junjie Zhou
Shanghai University of Finance and Economics ( email )
777 Guoding Road
Shanghai, P.R.China, Shanghai 200433
China
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