Innovate Safely – CT Scanners and Radiation Risk
Citation:
Luo, Hong, and Alberto Galasso. "Innovate Safely – CT Scanners and Radiation Risk." Harvard Business School Teaching Note 720-398, October 2019. View Details|
Article Management Science December 2014 When to Sell Your Idea: Theory and Evidence from the Movie Industry |
Abstract
I study a model of investment and sale of ideas and test its empirical implications using a novel data set from the market for original movie ideas. Consistent with the theoretical results, I find that buyers are reluctant to meet unproven sellers for early-stage ideas, which restricts sellers to either developing the ideas fully (to sell them later) or abandoning them. In contrast, experienced sellers can attract buyers at any stage and they sell worse ideas sooner and better ideas later. These results have important managerial implications for buyers and sellers and show that, in such contexts, policy interventions that discourage buyer participation—such as stronger intellectual-property protection—may diminish the market for ideas and hurt inexperienced sellers.
Keywords: Strategy; Intellectual Property; Film Entertainment; Sales; Entertainment and Recreation Industry;
Citation:
Luo, Hong. "When to Sell Your Idea: Theory and Evidence from the Movie Industry." Management Science 60, no. 12 (December 2014): 3067–3086.
