Optimal Compensation for Data-Sharing in Registration Processes

Published Online:https://doi.org/10.1287/mnsc.31.9.1142

Data-sharing is suggested or required in various registration procedures to avoid parallel testing of possibly dangerous substances. The question arises what the optimal compensation of an imitator to the innovator would be under such conditions. In a first arbitration award a scheme to determine the compensation is given. We develop another scheme on the basis of the Nash-solution for cooperative games. This is discussed with respect to the Shapley value and the core of the game.

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