Exclusive or not an experimental analysis of parallel innovation contest
Ramazan Kızılyıldırım1, C. Gizem Korpeoglu2, Ersin Körpeoglu1, Mirko Kremer3
1University College London; 2Eindhoven University of Technology; 3Frankfurt School of Finance & Management
We study multiple parallel innovation contests where contest organizers elicit solutions to a set of problems from solvers. Prior theoretical work shows that if problem solution requires less novelty then organizers should restrict participation with one contest. We experimentally show that this may not hold true in practice due to the heterogenity of solver efforts and encouraging solvers to participate in multiple contests can yield a larger organizer profit even for less novel problems.