We analyze investment decisions when information is costly, with and without delegation to an agent. We use a rational-inattention model and compare it with a canonical signal-extraction model. We identify three "investment conditions". In "sour" conditions, no information is acquired and no...

We present an equilibrium model where the demand side of the market determines the strategic incentives of firms when considering the introduction of technologically superior products (TSPs) and the subsequent dynamic evolution of the market configuration. Market demand is built on conventional...