Delegated Testing of Design Alternatives: The Role of Incentives and Testing Strategy
Delegated Testing of Design Alternatives: The Role of Incentives and Testing Strategy
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设计方案的委托测试:激励和测试策略的作用
DOI:
10.2139/ssrn.3020025
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发表时间:
2017
影响因子:
2
通讯作者:
Jochen Schlapp
中科院分区:
文献类型:
--
作者:
Gerrit Schumacher;Jochen Schlapp
Design testing is an integral part of nearly all new product development initiatives because it enables firms to identify the best designs for their new products. Test results are usually collected by (teams of) experts, who must be incentivized not only to exert effort in testing the designs but also to report their findings truthfully. Motivated by this widespread challenge, we address the following questions: How should a firm set up its design-testing process so that (i) the experts are adequately incentivized and, more importantly, (ii) the best design alternative is the one most likely to be selected? We answer these questions by devising a formal model of a (delegated) design-testing process. Our analysis identifies the firm’s optimal testing strategy and the optimal incentive structures; it also reveals how, exactly, delegation distorts a firm’s testing process.