Daniel P. Gross

Harvard Business School and NBER

I am grateful to Ben Handel, Steve Tadelis, and especially John Morgan, whose conversation provided much of the inspiration for this paper. I also thank colleagues at UC Berkeley and Harvard Business School, seminar and conference audiences, and the editor and anonymous reviewers for comments and suggestions that have improved the paper, as well as Branimir Dobeŝ for permission to include his work in this paper. Limited short segments of the text may be similar to passages from another of my papers (“Performance Feedback in Competitive Product Development”), which uses a different data set from the same setting. This research was supported by NSF grant DGE-1106400 as well as the Harvard Business School Division of Faculty and Research. All errors are my own.

A supplemental appendix is available online at http://www.mitpressjournals.org/doi/suppl/10.1162/rest_a_00831.