A Quest for Knowledge
Theoretical Economics
2024-12-13 v9
Abstract
Is more novel research always desirable? We develop a model in which knowledge shapes society's policies and guides the search for discoveries. Researchers select a question and how intensely to study it. The novelty of a question determines both the value and difficulty of discovering its answer. We show that the benefits of discoveries are nonmonotone in novelty. Knowledge expands endogenously step-by-step over time. Through a dynamic externality, moonshots -- research on questions more novel than what is myopically optimal -- can improve the evolution of knowledge. Moonshots induce research cycles in which subsequent researchers connect the moonshot to previous knowledge.
Keywords
Cite
@article{arxiv.2102.13434,
title = {A Quest for Knowledge},
author = {Christoph Carnehl and Johannes Schneider},
journal= {arXiv preprint arXiv:2102.13434},
year = {2024}
}