Rigotti, Luca; Ryan, Matthew; Vaithianathan, Rhema - EconWPA - 2001
This paper constructs an equilibrium model of entrepreneurial innovation where individuals differ in their attitude … toward uncertainty. Unlike previous models of innovation, the firm-formation process is endogenous. An entrepreneur, who owns …'s willingness to work with the uncertain technology. The general equilibrium setting allows us to explore the impact of innovation …