Bergh, Jeroen C.J.M. van den; Zeppini-Rossi, Paolo - Tinbergen Institute - 2008
We address the notion of dynamic, endogenous diversity and its role in theories of investment and technological … optimize the net benefits of diversity. The model takes into account increasing returns to scale and the effect of different … dimensions of diversity on the probability of emergence of a third option. We obtain analytical solutions describing the dynamic …