We study a duopoly model where consumers are heterogeneous with respect to their willingness to pay for two product characteristics and marginal costs are increasing with the quality level chosen on each attribute. We show that although firms seek to manage competition through product...

We model a duopoly in which ex ante identical firms must decide where to direct their innovation efforts. The firms face market uncertainty about consumers' preferences for innovation on two product attributes and technology uncertainty about the success of their research and development (R&D)...

Strategic orientation studies often provide ‘best practice prescriptions’ for firms in a given context—matching orientations to environmental conditions. While this perspective has value, empirical results are equivocal and an important reality has been overlooked: the fact that a firm’s...

This paper develops and tests a model of how recall of information from past decisions affects subsequent related decisions. A boundedly rational individual has to determine her willingness to pay for a good that she previously considered purchasing at a given price, or provide valuations for a...