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Rival Precedence and the Dynamics of Technology Adoption: An Empirical Analysis

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Author Info
Hannan, Timothy H
McDowell, John M

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Abstract

This study employs information on the adoption of automatic teller machines by banking firms to examine the nature of firm reactions to rival precedence in the adoption process Using a failure-time estimation procedure, it is found that the ado ption of this innovation by rivals increases the conditional probabil ity that a decision to adopt will be made. The effect of spillovers f rom technology adoption and the interaction of market concentration a nd rival precedence are also investigated. Finally, the study shows w ith an example how the estimation procedure may be used to test the u nderpinnings of diffusion processes. Copyright 1987 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 54 (1987)
Issue (Month): 214 (May)
Pages: 155-71
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Handle: RePEc:bla:econom:v:54:y:1987:i:214:p:155-71

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  1. Jalal Akhavein & W. Scott Frame & Lawrence J. White, 2001. "The Diffusion of Financial Innovations: An Examination of the Adoption of Small Business Credit Scoring By Large Banking Organizations," Working Papers 01-08, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
    Other versions:
  2. W. Scott Frame & Lawrence J. White, 2002. "Empirical studies of financial innovation: lots of talk, little action?," Working Paper 2002-12, Federal Reserve Bank of Atlanta. [Downloadable!]
  3. James G. Mulligan & Nilotpal Das, 2004. "Vintage Effects and the Diffusion of Time-Saving Technological Innovations: The Adoption of Optical Scanners by U.S. Supermarkets."," Working Papers 04-06, University of Delaware, Department of Economics. [Downloadable!]
  4. Margaret Smith, 2004. "A model of the linked adoption of complementary technologies," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(1), pages 91-99, January. [Downloadable!] (restricted)
  5. Rachel BOCQUET (IREGE, IUT-University of Savoie) & Olivier BROSSARD (LEREPS-GRES), 2006. "Information Technologies (IT) Adoption and Localized Knowledge Diffusion: an Empirical Study," Cahiers du GRES 2006-17, Groupement de Recherches Economiques et Sociales. [Downloadable!]
  6. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "Les facteurs déterminants des retards en matière d'adoption des technologies de fabrication de pointe," Direction des études analytiques : documents de recherche 1998117f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  7. W. Scott Frame & Lawrence White, 2002. "Empirical Studies of Financial Innovation: Lots of Talk, Little Action?," Working Papers 02-18, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
  8. Karaaslan, Mehmet E., 2007. "Monopoly, Diversification through Adjacent Technologies, and Market Structure," MPRA Paper 7607, University Library of Munich, Germany. [Downloadable!]
  9. James G. Mulligan & Nilotpal Das, 2005. "Persistent Adoption of Time-Saving Process Innovations," Working Papers 05-03, University of Delaware, Department of Economics. [Downloadable!]
  10. Adela Luque, 2002. "An Option-Value Approach To Technology Adoption In U.S. Manufacturing: Evidence From Microdata," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 11(6), pages 543-568, January. [Downloadable!] (restricted)
  11. James G. Mulligan & Nilotpal Das, 2006. "Item Pricing Laws, Supplier Behavior, and the Diffusion of Time-Saving Technology Innovations," Working Papers 06-11, University of Delaware, Department of Economics. [Downloadable!]
  12. Baldwin, John R. & Raffiquzzaman, Mohammed, 1998. "The Determinants of the Adoption Lag for Advanced Manufacturing Technologies," Analytical Studies Branch Research Paper Series 1998117e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
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