explain them. We then describe a theoretical framework of endogenous markups, innovation, and competition that can potentially …

Innovation is typically a trial-and-error process. While some research paths lead to the innovation sought, others … that leads to an early abandonment of the risky project. We show that different types of firms follow different innovation …

competing firms. While some research paths lead to the innovation sought, others result in dead ends. Because firms benefit from … competition to make firms keep their dead-end findings private. We characterize the equilibrium in this decentralized environment …