Can you please name/educate us on some of those game theories and how they apply? (Please don't just point me to prisoners dilemma on wikipedia unless it lays out how it applies to research funding)
Free rider problems/tragedy of the anticommons - research that isn't directly patent-able would result in a dearth of private investment because there isn't a comparative advantage in researching it
Tragedy of the Commons - Research into monitoring, maintaining, regulating, and improving resources shared by private companies
Positive externalities - Some research will not pencil out without including return on investment that cannot be captured by a company
Negative externalities - Companies won't invest in research to reduce injury to other parties (could fix with regulation also but depending on specifics this may be very difficult to enforce)
