We consider the problem of a firm facing failures with weak forewarning signals. In the base model that we study, the firm watches for signals of a random arrival of a disruptive innovation and continuously updates the posterior probability that a disruptive innovation has already happened. A...

Economists' view of liquidity is askin to Supreme Court Justice Stewart's View of hard-core pornography: "I shall not ... attempt further to define (it) .... But I know it when I see it". Embedding the process of selling an asset in a search environment enables us to provide an exact definition...