We analyze how a manufacturer with a brand-name drug close to patent expiration decides to launch a product-line extension (an upgrade through innovation) before it faces generic competition. There are two types of physicians: loyal physicians always prescribe first the product-line extension...

We provide a general characterization of the structure of rational expectations equilibria of any degree of revelation for pure exchange, sequential economies, with deffinitely many states of private information, an incomplete financial market and nominal assets. We estimate the dimension of the...