Strategic Disclosure in Research Races
52 Pages Posted: 16 Oct 2023
Date Written: August 20, 2023
We study a research race between two players. Each player works on an identical two-step project. To work on step 2, a player must complete step 1. Each step is completed with a discovery. Once a discovery is made, a player decides whether and when to disclose it. Disclosure of an intermediate discovery gives an immediate reward to the player, but it also allows the opponent to copy it and compete for a final reward from the final discovery. We show that a higher final reward has a U-shaped effect on when the intermediate finding is disclosed and when the final finding is discovered: A higher final reward speeds up both if and only if the final reward is low.
Keywords: Research races, strategic disclosure
JEL Classification: D83, O31
Suggested Citation: Suggested Citation