Hemous, David; Olsen, Morten - C.E.P.R. Discussion Papers - 2015
match or a bad match, with bad matches featuring lower productivity. This allows us to build a cooperative equilibrium where … contractible or when we preclude cooperation in long-term relationships, (ii) the rate of innovation in the cooperative equilibrium … period). In that case, for sufficiently slow diffusion, the innovation rate in the cooperative equilibrium may be higher than …