Startups are a key driver of innovation but are frequently the target of acquisition by incumbent firms. How does this affect the types of products that are developed? We study a model in which an entrant decides whether to develop either a product that is a partial substitute for an...

We study the design of efficient mechanisms under asymmetric awareness and information. Unawareness refers to the lack of conception rather than the lack of information. Assuming quasi-linear utilities and private values, we show that we can implement in conditional dominant strategies a social...