We study a Cournot duopoly where firms can decide to incur fixed costs in activities that improve their competitiveness (i.e. product development or process innovation). Innovation costs generate discontinuities in the firms' quantity best response functions and, in turn, a variety of...

This paper analyzes the entry of new products into vertically differentiated markets where an entrant and an incumbent compete in quantities. The value of the new product is initially uncertain and new information is generated through purchases in the market. We derive the (unique) Markov...

We refine modelling of the radical innovation decision in this paper by extending real option theory to include non-marginal stochastic jump processes. From the model analytics we determine that the average magnitude and frequency of non-marginal stochastic jump processes are the most important...

We refine modelling of the radical innovation decision in this paper by extending real option theory to include non-marginal stochastic jump processes. From the model analytics we determine that the average magnitude and frequency of non-marginal stochastic jump processes are the most important...

The purpose of this research is to develop a cost estimation model of a project with its real options. This issue is particularly attributed to the selection of an adequate evaluation model. However, despite the high computational accuracy of a particular model, it can scarcely ever meet the...

In the research intensive sectors, eg. Biotechnology and Software sectors, it is a prominent and growing trend for the big commercial firms to outsource the research activities to smaller but research-oriented firms or research labs. In this paper, I provide an explanation based on the...

Study of the problems of uncertainty in innovation is at present the most up to date. Approaches to its definition, arranged primarily on the assumption and include the known parameters, which essentially is a game approach to the assessment. Address specific issues of governance of innovation...