We consider the financing of a research project under uncertainty about the time of completion and the probability of eventual success. We distinguish between two financing modes, namely relationship financing, where the allocation decision of the entrepreneur is observable, and arm's-length...

We analyze the diffusion of a new product of uncertain value in a duopolistic market. Both sides of the market, buyers and sellers, learn the true value of the new product from experiments with it. Buyers have heterogeneous preferences over the products and sellers compete in prices. The pricing...