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When do people tell white lies? In this paper we distinguish between two types of white lies: those that help others at the expense of the person telling the lie, which we term altruistic white lies, and those that help both others and the liar, which we term Pareto white lies. We find a large fraction of participants are reluctant to tell even a Pareto(More)
O rganizations increasingly seek solutions to their open-ended design problems by employing a contest approach in which search over a solution space is delegated to outside agents. We study this new class of problems, which are costly to specify, pose credibility issues for the focal firm, and require finely tuned awards for meeting the firm's needs.(More)
M otivated by several examples from industry, such as the introduction of a biotechnology-based process innovation in nylon manufacturing, we consider a technology provider that develops and introduces innovations to a market of industrial customers—original equipment manufacturers (OEMs). The technology employed by these OEMs determines the performance(More)
P ast research in new product development (NPD) has conceptualized prototyping as a " design-build-test-analyze " cycle to emphasize the importance of the analysis of test results in guiding the decisions made during the experimentation process. New product designs often involve complex architectures and incorporate numerous components, and this makes the(More)
We investigate whether piece-rate and competitive incentives affect creativity, and if so, how the incentive effect depends on the form of the incentives. We find that while both piece-rate and competitive incentives lead to greater effort relative to a base-line with no incentives, neither type of incentives improve creativity relative to the base-line.(More)
F irms in a variety of industries offer add-on products to consumers who have previously purchased a base product. We posit that consumers, in making their decisions as to whether to purchase add-ons that complement the base products, find a greater need for the value offered by the add-ons when the " unrecovered " value (i.e., price paid minus the benefits(More)
1 The authors thank Christoph Loch, Beril Toktay, the Associate Editor, and two anonymous reviewers, for their valuable suggestions and comments that have greatly helped improve the manuscript Abstract Past research in new product development (NPD) has conceptualized prototyping as a 'design-build-test-analyze' cycle to emphasize the importance of the(More)