Interesting. A lot of this is because of imperfect information and transaction costs. I wonder if firms running R&D choose a different route and if that works.

Interesting. A lot of this is because of imperfect information and transaction costs. I wonder if firms running R&D choose a different route and if that works. Perhaps even random resource allocation would do a better job since it removes the incentive to falsify though it does add an incentive to participate in bad faith.