We consider a firm moving towards a stochastic final destination, to be chosen from a discrete set after a decision period. The decision period itself may be deterministic or stochastic. We assume the firm can move at variable innovation (R&D) speed associated with a monotone nondecreasing...

We derive a set of optimal environmental regulations in the presence of asymmetric information about pollution abatement costs, where compliance may have to be induced through appropriate monitoring and enforcement measures. The regulator commits to monitoring of compliance with incentive...

The starting point of our consideration on technological racing are stochastic models that view corporations as moving objects to approach a stochastic destination. A major focus is the strategic orientation of corporations in participating in such a race , revealing empirically observable...

This paper develops a framework to analyze how choices are made when R&D competition occurs between two firms, and the aggressiveness-time tradeoffs have to be resolved in multiple stages. At issue is the way in which resources are used at each stage, i.e. are aggressiveness problems undertaken...