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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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 Download reference. The following formats are available: HTML
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