Seminario "(Un)finished products"
Miércoles 1/7, 17.15h
Presentado por Francisco Poggi
Abstract: When a seller faces a buyer who may develop a product in-house, should the seller offer a prototype or a finished product? Offering a prototype leaves the buyer uncertain about the product's value, whereas a finished product reveals the product's value to the buyer---either publicly (observable to both parties) or privately (observed by the buyer alone). The seller faces a tradeoff between extracting information rents and discouraging the buyer's search for an in-house solution. We characterize the conditions under which the seller prefers to offer a finished product rather than a prototype.
Francisco Poggi
Ph.D. in Economics, Northwestern University. Assistant Professor of Economics at the University of Mannheim.
His research uses economic theory and mechanism design to study how institutions shape the acquisition and strategic use of information—when agents reveal, delay, or conceal what they know—in areas such as innovation, carbon emissions, and liability.