This paper presents a general framework for analysing stochastic stability in models with evolution at two levels. Under certain conditions these two levels can be disentangled and studied separately. In such cases the limit distribution at one level can be used to approximate the limit...

This paper considers investment behavior of duopolistic firms subject to technological progress. It is assumed that initially both firms offer a homogeneous product, but after a stochastic waiting time they are able to realize a product innovation. Production capacities of both firms are product...