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Learning When to Quit: An Empirical Model of Experimentation in Standards Development

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  • Bernhard Ganglmair

  • Timothy Simcoe

  • Emanuele Tarantino

Abstract

Motivated by a descriptive analysis of standards development within the Internet Engineering Task Force, we develop a dynamic discrete choice model of R&D that highlights the decision to continue or abandon a line of research. Our estimates imply that sixty percent of IETF proposals are publishable, but only one-third of those good ideas survive the review process. Increased attention and author experience are associated with faster learning. We simulate two counterfactual innovation policies: an R&D subsidy and a publication-prize. Subsidies have a larger impact on research output, though prizes perform better when accounting for researchers' opportunity costs.

Suggested Citation

  • Bernhard Ganglmair & Timothy Simcoe & Emanuele Tarantino, 2018. "Learning When to Quit: An Empirical Model of Experimentation in Standards Development," CRC TR 224 Discussion Paper Series crctr224_2018_041, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2018_041
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    References listed on IDEAS

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    1. Timothy Simcoe, 2012. "Standard Setting Committees: Consensus Governance for Shared Technology Platforms," American Economic Review, American Economic Association, vol. 102(1), pages 305-336, February.
    2. Michael Roach & Wesley M. Cohen, 2013. "Lens or Prism? Patent Citations as a Measure of Knowledge Flows from Public Research," Management Science, INFORMS, vol. 59(2), pages 504-525, October.
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    Cited by:

    1. Alessandra Allocca, 2023. "“No Man is an Island”: An Empirical Study on Team Formation and Performance," Rationality and Competition Discussion Paper Series 389, CRC TRR 190 Rationality and Competition.
    2. Baron, Justus, 2020. "Counting standard contributions to measure the value of patent portfolios - A tale of apples and oranges," Telecommunications Policy, Elsevier, vol. 44(3).
    3. Baron, Justus & Kanevskaia, Olia, 2023. "Wearing multiple hats—The role of working group chairs’ affiliation in standards development," Research Policy, Elsevier, vol. 52(9).

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    More about this item

    Keywords

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    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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