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Preference Markets for Innovation Ranking and Selection

Author

Listed:
  • Li Chen

    (School of Business, University of Connecticut, Storrs, Connecticut 06269)

  • Paulo Goes

    (Eller College of Management, University of Arizona, Tucson, Arizona 85721)

  • Wynd Harris

    (School of Business, University of Connecticut, Storrs, Connecticut 06269)

  • James Marsden

    (School of Business, University of Connecticut, Storrs, Connecticut 06269)

  • John Zhang

    (School of Business, University of Connecticut, Storrs, Connecticut 06269)

Abstract

Companies face constant challenges to appropriately rank and select innovative technologies for potential strategic investments, and they have used many methodologies to help them with this task; however, these existing processes have several limitations. This paper showcases how information preference markets can be structured and implemented to rank and select these technologies. We demonstrate the market process for a leading company in the Fortune 100 companies list. The results are encouraging and have persuaded the company to make a significant financial commitment to expand its use of preference markets. The work we present here offers readers a step-by-step illustration of how to develop and use preference markets in industry settings.

Suggested Citation

  • Li Chen & Paulo Goes & Wynd Harris & James Marsden & John Zhang, 2010. "Preference Markets for Innovation Ranking and Selection," Interfaces, INFORMS, vol. 40(2), pages 144-153, April.
    • Handle: RePEc:inm:orinte:v:40:y:2010:i:2:p:144-153
    DOI: 10.1287/inte.1090.0478
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    References listed on IDEAS

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