This paper is an attempt to explain diffusion in the production of an innovation. Diffusion in production is defined as the increase in number of producers, or net entry, in the market for a new product. It is to be distinguished from the more familiar problem in the literature on technical...

This paper is an attempt to explain diffusion in the production of an innovation. Diffusion in production is defined as the increase in number of producers, or net entry, in the market for a new product. It is to be distinguished from the more familiar problem in the literature on technical...

This article reexamines the problem of breach of contract studied by Shavell (1980, 1984) and Rogerson (1984) by considering explicitly the incentive problems that arise from asymmetric information and transaction-specific investment. We derive the optimal contract, which consists of variable...