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Multi-Project Collaborations

Author

Listed:
  • Angelucci, Charles
  • Orzach, Roi

Abstract

We analyze collaborative experimentation across multiple independent domains. Each domain contains infinitely many potential projects with asymmetric benefits. In each period and domain, two players can idle, jointly explore a new project, or jointly exploit a known one, with voluntary transfers. For intermediate discount factors, treating domains as independent during experimentation is suboptimal. The optimal experimentation policy exhibits common features of collaborative experimentation: lengthy exploration, temporary project exploitation, recall of past projects, and inefficient initial or terminal idling within certain domains. We connect these findings to research on buyer-supplier dynamics and persistent productivity differences.

Suggested Citation

  • Angelucci, Charles & Orzach, Roi, 2026. "Multi-Project Collaborations," CEPR Discussion Papers 21702, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:21702
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    File URL: https://cepr.org/publications/DP21702
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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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