Traditional economic theory describes economic agents as being perfectly rational. According to this approach, agents posses all necessary information and have the ability to process this information to make the best decision for maximizing their profit. However, in the real world this...

We address the notion of dynamic, endogenous diversity and its role in theories of investment and technological innovation. We develop a formal model of an innovation arising from the combination of two existing modules with the objective to optimize the net benefits of diversity. The model...