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Loury (1979) - Market Structure And Innovation (view source)
Revision as of 19:56, 17 November 2010
, 19:56, 17 November 2010no edit summary
:<math>a_i= \sum_{j\ne i} h(x_j)\; </math>
The firm discounts the future reciepts at a rate <math>r\;</math> (note that using continuous compounding, <math>PV = FV \cdot e^{-rt})\;</math>, but apparently this paper values the future price at <math>\frac{V}{r}\;</math>).
The firm wins the prize at time <math>t\;</math> with probability:
