I construct an endogenous growth model where R&D is carried out at the industry level in a game of innovation between leaders and followers. Innovation costs for followers are assumed to increase with the technological lag from leaders. I obtain three results that contrast with standard Schumpeterian models, such as Aghion and Howitt (1992). First, leaders may innovate in equilibrium, in an att...

Consumers may observe previous consumers' choices. They may follow their choices if they think these consumers are better informed. In turn, firms may concentrate on influencing the early consumers. This, in turn, changes the nature of early consumers' choice behavior as a signal for other consumers. In this paper, I show that firms' influence activities need not distort earlier consumers' deci...

In recent years, US investment has been lackluster, despite rising valuations. Key explanations include growing rents and intangibles. We propose estimate a framework to quantify their roles. The gap between valuations — reflected in average Q marginal q can be decomposed into three terms: the value of installed intangibles; generated by physical capital; an interaction term, measuring intangib...