We propose a dynamic model in which firms compete to produce sequential and cumulative innovations, and in which the more firms do research in one sector the more likely it is that one of them innovates. Firms choose research effort and whether to patent innovations or to use an Open Source...

We develop a multistage game in which firms do cumulative R&D to complete a lengthy process, and we study whether firms patent intermediate results or release them in Open Source. A patent holder obtains a larger reward in the market, but since in equilibrium it forecloses R&D it remains alone...

This paper introduces time inconsistent preferences into a moral hazard setting where the agent is risk-averse. We derive a necessary optimality condition on the consumption allocation that is different from the so-called Inverse Euler Equation of Rogerson (1985). Specifically, inverse marginal...