Comparing push and pull mechanisms with variable funding F(C) = C.
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*The expected profit term includes the funding provided by the sponsor, whether or not it is actually spent on R&D by the firm. The net revenue R from a successful product is 0.3. The probabilities of successful R&D investment for the firm (C = 0, C = 0.2, C = 0.4 and C = 0.6) are, respectively, 0, 0.5, 0.66 and 0.85.
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2015-12-02
