A comparison of milestone contract and royalty contract under critical value criterion in R&D alliance

摘要: This paper attempts to better understand contract type and risk attitude in RD nevertheless, the marketer should offer first-best contract. Furthermore, investigating impacts of information asymmetry on marketer’s profits under two structures, we find that dual asymmetric harms profit, especially when innovator’s effort marginal efficiency is higher. Finally, by comparing types contracts, give specific regions milestone or royalty benefits different structures.