- Field
- Information Economics
- Dynamic Games
- Learning and Experimentation
- Contact
- work@shangen.li
Shangen Li
About
Welcome to my research webpage!
I earned my Ph.D. in Economics from the Zürich GSE in 2022 and am currently affiliated with the Zürich Center for Market Design.
Research
Working papers
Strategic Exploration for Innovation
This paper introduces a framework to study innovation in a strategic setting, in which innovators allocate their resources between exploration and exploitation in continuous time. Exploration creates public knowledge, while exploitation delivers private benefits. Through the analysis of a class of Markov equilibria, we demonstrate that knowledge spillovers accelerate knowledge creation and expedite its availability, thereby encouraging innovators to increase exploration. The prospect of the ensuing superior long-term innovations further motivates exploration, giving rise to a positive feedback loop. This novel feedback loop can substantially mitigate the free-riding problem arising from knowledge spillovers.