Consider a market in which firms compete to develop a new product. While most work focuses on a single firm successfully developing the new product, the emphasis here is on possibly multiple firms devloping the new product. Thus, a firm has uncertainty about how many competitors it will face as...

Firms regularly introduce new, non-patentable products and innovations. When the possibility of a new product or an innovation arises to a potential seller, the seller faces a risk in successfully creating and producing a new product that consumers value above its costs. This framework enables a...