Winner determination of open innovation contests in online markets

Yang Yang, Pei Yu Chen, Rajiv Banker

Research output: Chapter in Book/Report/Conference proceedingConference contribution

13 Scopus citations

Abstract

Online innovation contests have been used by more and more firms for idea seeking and problem solving. Most studies of contests take the perspective of innovation seekers, and little is known about solvers' strategies and responses. However, contest performance also relies on understanding solver responses. This paper provides insights to these questions. Specifically, we show that past experience of a solver is a good predictor of his future winning probability and that winners are more likely to be those who submit early or later during the submission period as opposed to those submit in the middle. We also find that "strategic waiting" (to submit solutions) is associated with higher winning probability. Furthermore, we show that different contests appear to attract solvers with different expertise, which invalids the common assumption of fixed solver expertise distribution across projects in previous literature. This finding has strategic implications to the design of contest parameters.

Original languageEnglish (US)
Title of host publicationInternational Conference on Information Systems 2011, ICIS 2011
Pages3737-3752
Number of pages16
StatePublished - Dec 1 2011
Externally publishedYes
Event32nd International Conference on Information System 2011, ICIS 2011 - Shanghai, China
Duration: Dec 4 2011Dec 7 2011

Publication series

NameInternational Conference on Information Systems 2011, ICIS 2011
Volume5

Other

Other32nd International Conference on Information System 2011, ICIS 2011
CountryChina
CityShanghai
Period12/4/1112/7/11

Keywords

  • Crowdsourcing
  • Online bidding
  • Online contest
  • Open Innovation
  • Past Experience
  • Strategic bidding
  • Winner determination

ASJC Scopus subject areas

  • Information Systems

Cite this

Yang, Y., Chen, P. Y., & Banker, R. (2011). Winner determination of open innovation contests in online markets. In International Conference on Information Systems 2011, ICIS 2011 (pp. 3737-3752). (International Conference on Information Systems 2011, ICIS 2011; Vol. 5).