We analyze a duopoly where capacity-constrained firms offer an established product and have the option to offer an additional new and differentiated product. We show that the firm with the smaller capacity on the established market has a higher incentive to innovate and reaches a larger market...

We present a novel model of corruption dynamics in the form of a nonlinear optimal dynamic control problem. It has a tipping point, but one whose origins and character are distinct from that in the classic Schelling (1978) model. The decision maker choosing a level of corruption is the chief or...

A heated debate in drug policy concerns the relative merits of "harm reduction" (e.g., reducing drug-related HIV/AIDS transmission) vs. "use reduction" (controlling drug use per se). This paper models whether shifting emphasis between these goals over the course of a drug epidemic might reduce...