Function for an Entrepreneurial Firm


  • Richard Teach
  • Robert G. Schwartz


The purpose of this paper is to explore a variation of the sine function that represents the product development process in a small, one-product, entrepreneurial firm. The function utilizes two primary decision variables, cumulative time and cumulative capital expended on product development. Before the product may be marketed, it must successfully complete both an Alpha and Beta test, both of which are modeled as stochastic functions. The game that the functions have been developed for is DUALITY; a review of Duality was presented at the 2002 ISAGA conference.