Entrepreneurs and new ideas
AbstractWe study how early-stage new ideas are turned into successful businesses. Even promising ideas can be unprofitable if they fail on one dimension, such as technical feasibility, correspondence to market demand, legality, or patentability. To screen good ideas, the entrepreneur needs to hire experts who evaluate the idea along their dimensions of expertise. Sharing the idea, however, creates the risk that the expert would steal it. Yet, the idea-thief cannot contact any other expert, lest he should in turn steal the idea. Thus, stealing leads to incomplete screening and is unattractive if the information of the other expert is critical and highly complementary. In such cases, the entrepreneur can form a partnership with the experts, thus granting them the advantage of accessing each other's information. Yet, very valuable ideas cannot be shared because it is too tempting to steal them. Copyright (c) 2008, RAND.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by RAND Corporation in its journal The RAND Journal of Economics.
Volume (Year): 39 (2008)
Issue (Month): 4 ()
Contact details of provider:
Postal: 1776 Main Street, P.O. Box 2138, Santa Monica, California 90407-2138
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0741-6261
More information through EDIRC
Other versions of this item:
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lazear, Edward, 2003. "Entrepreneurship," IZA Discussion Papers 760, Institute for the Study of Labor (IZA).
- Laffont, Jean-Jacques & Martimort, David, 1998.
"Mechanism Design with Collusion and Correlation,"
IDEI Working Papers
81, Institut d'Économie Industrielle (IDEI), Toulouse.
- George W. Fenn & Nellie Liang & Stephen Prowse, 1995. "The economics of the private equity market," Staff Studies 168, Board of Governors of the Federal Reserve System (U.S.).
- Cestone, G. & White, L., 1999.
"Anti-Competitive Financial Contracting: the Design of Financial Claims,"
99.525, Toulouse - GREMAQ.
- Giacinta Cestone & Lucy White, 2003. "Anticompetitive Financial Contracting: The Design of Financial Claims," Journal of Finance, American Finance Association, vol. 58(5), pages 2109-2142, October.
- Cestone, Giacinta & White, Lucy, 2002. "Anti-Competitive Financial Contracting: The Design of Financial Claims," CEPR Discussion Papers 3182, C.E.P.R. Discussion Papers.
- Giacinta Cestone & Lucy White, . "Anti-Competitive Financial Contracting: The Design Of Financial Claims," UFAE and IAE Working Papers 453.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Anton, James J & Yao, Dennis A, 2002. "The Sale of Ideas: Strategic Disclosure, Property Rights, and Contracting," Review of Economic Studies, Wiley Blackwell, vol. 69(3), pages 513-31, July.
- Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August.
- Maskin, Eric & Tirole, Jean, 1992. "The Principal-Agent Relationship with an Informed Principal, II: Common Values," Econometrica, Econometric Society, vol. 60(1), pages 1-42, January.
- Hellmann, Thomas F., 2000.
"Entrepreneurship and the Process of Obtaining Resource Commitments,"
1704, Stanford University, Graduate School of Business.
- Thomas Hellmann, 2000. "Entrepreneurship and the Process of Obtaining Resource Commitments," Econometric Society World Congress 2000 Contributed Papers 0399, Econometric Society.
- Aghion, Philippe & Tirole, Jean, 1994.
"On the Management of Innovation,"
IDEI Working Papers
36, Institut d'Économie Industrielle (IDEI), Toulouse.
- Stanley M. Besen & Leo J. Raskind, 1991. "An Introduction to the Law and Economics of Intellectual Property," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 3-27, Winter.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
- Aghion, Philippe & Tirole, Jean, 1994. "The Management of Innovation," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 1185-1209, November.
- Bayar, Onur & Chemmanur, Thomas J. & Liu, Mark H., 2011. "A theory of equity carve-outs and negative stub values under heterogeneous beliefs," Journal of Financial Economics, Elsevier, vol. 100(3), pages 616-638, June.
- Thomas Hellmann & Enrico Perotti, 2011.
"The Circulation of Ideas in Firms and Markets,"
INFORMS, vol. 57(10), pages 1813-1826, October.
- Thomas Hellman & Enrico Perotti, 2010. "The Circulation of Ideas in Firms and Markets," Working Papers 2010.47, Fondazione Eni Enrico Mattei.
- Thomas F. Hellmann & Enrico C. Perotti, 2011. "The Circulation of Ideas in Firms and Markets," NBER Working Papers 16943, National Bureau of Economic Research, Inc.
- Herbst, Patrick & Walz, Uwe, 2009. "The design of vertical R&D collaborations," CFS Working Paper Series 2009/06, Center for Financial Studies (CFS).
- Prüfer, J., 2008.
2008-023, Tilburg University, Tilburg Law and Economic Center.
- Dewatripont, Mathias & Tirole, Jean, 2004.
"Modes of Communication,"
IDEI Working Papers
323, Institut d'Économie Industrielle (IDEI), Toulouse.
- Andres Almazan & Javier Suarez & Sheridan Titman, 2009.
"Firms' Stakeholders and the Costs of Transparency,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 18(3), pages 871-900, 09.
- Tykvova, Tereza, 2007.
"Who chooses whom? Syndication, skills and reputation,"
Review of Financial Economics,
Elsevier, vol. 16(1), pages 5-28.
- Tykvová, Tereza, 2005. "Who Chooses Whom? Syndication, Skills and Reputation," ZEW Discussion Papers 05-74, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Walter Buhr, 2009. "Infrastructure of the Market Economy," Volkswirtschaftliche DiskussionsbeitrÃ¤ge 132-09, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
- Grossman, Herschel I., 2005.
"Inventors and pirates: creative activity and intellectual property rights,"
European Journal of Political Economy,
Elsevier, vol. 21(2), pages 269-285, June.
- Herschel Grossman, 2000. "Inventors and Pirates:Creative Activity and Intellectual Property Rights," Working Papers 2000-14, Brown University, Department of Economics.
- Herschel I. Grossman, 2000. "Inventors and Pirates: Creative Activity and Intellectual Property Rights," NBER Working Papers 7898, National Bureau of Economic Research, Inc.
- Casamatta, Catherine & Haritchabalet, Carole, 2007.
"Experience, screening and syndication in venture capital investments,"
Journal of Financial Intermediation,
Elsevier, vol. 16(3), pages 368-398, July.
- Casamatta, Catherine & Haritchabalet, Carole, 2007. "Experience, Screening and Syndication in Venture Capital Investments," IDEI Working Papers 443, Institut d'Économie Industrielle (IDEI), Toulouse.
- Alexandre Gaudeul, 2004. "Open Source Software Development Patterns and License Terms," Industrial Organization 0409008, EconWPA.
- Dominique Demougin & Oliver Fabel, 2006.
"The Division of Ownership in New Ventures,"
SFB 649 Discussion Papers
SFB649DP2006-047, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Oliver Fabel & Dominique Demougin, 2004. "The Division of Ownership in New Ventures," Working Papers of the Research Group Heterogenous Labor 04-03, Research Group Heterogeneous Labor, University of Konstanz/ZEW Mannheim.
- Bourjade, Sylvain & Jullien, Bruno, 2004. "Expertise and Bias in Decision Making," MPRA Paper 7251, University Library of Munich, Germany, revised Jan 2007.
- Marini, Marco A., 2005. "The value of a new idea: knowledge transmission, workers' mobility and market structure," MPRA Paper 1687, University Library of Munich, Germany, revised Jan 2006.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.