Suppose an investment of $100,000 in research yields a pioneering invention that has no commercial value and subsequent investment of $50,000 in development yields an improvement that has a commercial value of $1,000,000. Assume that firm A is uniquely situated to do the pioneering research, and firm B is uniquely situated to develop the application. Predict the difference in investment from a broad patent law and a narrow patent law. In making your prediction, distinguish between a situation in which high transaction costs prevent firm A and firm B from bargaining with each other and a situation in which bargaining costs are zero.