In this paper, we examine how uncertainty can affect successive markets, when uncertainty can affect both upstream and downstream markets' conditions. The main result of the paper is that the equilibrium solution depends on how much dependent are the events.

This paper explores (i) the incentives for an incumbent firm to acquire an entrant willing to sell a product innovation rather than openly competing with this entrant, and (ii) in case of acquisition, the incentives to sell simultaneously both the existing products and the new one rather than...