IDEAS home Printed from https://ideas.repec.org/a/wly/soecon/v73y2007i3p588-603.html
   My bibliography  Save this article

The Diffusion of a Medical Innovation: Is Success in the Stars?

Author

Listed:
  • Mary A. Burke
  • Gary M. Fournier
  • Kislaya Prasad

Abstract

This paper relates the diffusion of the coronary stent to the presence of prominent or “star” physicians within a local peer group. The paper uses panel data on coronary care in Florida covering the period immediately following the 1995 Food and Drug Administration (FDA) approval of the stent, a significant improvement in coronary angioplasty. Adoption timing and utilization varied considerably across doctors between 1995 and 2001. We consider the role of asymmetric social influence among physicians based on professional status. Defining “star” status as having completed residency at a top‐ranked hospital, we find that the diffusion of stents by non‐stars depends positively on the number of stars practicing contemporaneously at the same hospitals, while we find no social influence in the opposite direction. The findings indicate that lack of local exposure to star physicians may slow adoption, and clustering of stars in a small number of hospitals may entail welfare costs.

Suggested Citation

  • Mary A. Burke & Gary M. Fournier & Kislaya Prasad, 2007. "The Diffusion of a Medical Innovation: Is Success in the Stars?," Southern Economic Journal, John Wiley & Sons, vol. 73(3), pages 588-603, January.
    • Handle: RePEc:wly:soecon:v:73:y:2007:i:3:p:588-603
    DOI: 10.1002/j.2325-8012.2007.tb00791.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/j.2325-8012.2007.tb00791.x
    Download Restriction: no
    File URL: https://libkey.io/10.1002/j.2325-8012.2007.tb00791.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Timothy Conley & Udry Christopher, 2001. "Social Learning Through Networks: The Adoption of New Agricultural Technologies in Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 668-673.
    2. Papke, Leslie E., 1994. "Tax policy and urban development : Evidence from the Indiana enterprise zone program," Journal of Public Economics, Elsevier, vol. 54(1), pages 37-49, May.
    3. Robert S. Huckman, 2003. "The Utilization of Competing Technologies Within the Firm: Evidence from Cardiac Procedures," Management Science, INFORMS, vol. 49(5), pages 599-617, May.
    4. Goolsbee, Austan & Klenow, Peter J, 2002. "Evidence on Learning and Network Externalities in the Diffusion of Home Computers," Journal of Law and Economics, University of Chicago Press, vol. 45(2), pages 317-343, October.
    5. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    6. Hashimoto, Hideki & Noguchi, Haruko & Heidenreich, Paul & Saynina, Olga & Moreland, Abigail & Miyazaki, Shunichi & Ikeda, Shunya & Kaneko, Yoshihiro & Ikegami, Naoki, 2006. "The diffusion of medical technology, local conditions, and technology re-invention: A comparative case study on coronary stenting," Health Policy, Elsevier, vol. 79(2-3), pages 221-230, December.
    7. Jonathan Skinner & Douglas Staiger, 2007. "Technology Adoption from Hybrid Corn to Beta-Blockers," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 545-570, National Bureau of Economic Research, Inc.
    8. Munshi, Kaivan, 2004. "Social learning in a heterogeneous population: technology diffusion in the Indian Green Revolution," Journal of Development Economics, Elsevier, vol. 73(1), pages 185-213, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eliana Barrenho & Eric Gautier & Marisa Miraldo & Carol Propper & Christiern Rose, 2020. "Innovation Diffusion and Physician Networks: Keyhole Surgery for Cancer in the English NHS," Discussion Papers Series 638, School of Economics, University of Queensland, Australia.
    2. Wagner, Peter A. & Klein, Nicolas, 2022. "Strategic investment and learning with private information," Journal of Economic Theory, Elsevier, vol. 204(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feng, Yao, 2011. "Local spillovers and learning from neighbors: Evidence from durable adoptions in rural China," MPRA Paper 33924, University Library of Munich, Germany.
    2. Xiong, Hang & Payne, Diane & Kinsella, Stephen, 2016. "Peer effects in the diffusion of innovations: Theory and simulation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 1-13.
    3. Daron Acemoglu & Munther A. Dahleh & Ilan Lobel & Asuman Ozdaglar, 2011. "Bayesian Learning in Social Networks," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 78(4), pages 1201-1236.
    4. Celen, Bogachan & Hyndman, Kyle, 2006. "Endogenous Network Formation In the Laboratory," MPRA Paper 1440, University Library of Munich, Germany.
    5. Syngjoo Choi & Douglas Gale & Shachar Kariv, 2012. "Social learning in networks: a Quantal Response Equilibrium analysis of experimental data," Review of Economic Design, Springer;Society for Economic Design, vol. 16(2), pages 135-157, September.
    6. Wagner, Peter A. & Klein, Nicolas, 2022. "Strategic investment and learning with private information," Journal of Economic Theory, Elsevier, vol. 204(C).
    7. He, Pan & Lovo, Stefania & Veronesi, Marcella, 2022. "Social networks and renewable energy technology adoption: Empirical evidence from biogas adoption in China," Energy Economics, Elsevier, vol. 106(C).
    8. ,, 2013. "A general framework for rational learning in social networks," Theoretical Economics, Econometric Society, vol. 8(1), January.
    9. Bogaçhan Çelen & Kyle Hyndman, 2012. "Social Learning Through Endogenous Information Acquisition: An Experiment," Management Science, INFORMS, vol. 58(8), pages 1525-1548, August.
    10. Giuseppe Maggio & Marina Mastrorillo & Nicholas J. Sitko, 2022. "Adapting to High Temperatures: Effect of Farm Practices and Their Adoption Duration on Total Value of Crop Production in Uganda," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 385-403, January.
    11. Fishman, Arthur & Fishman, Ram & Gneezy, Uri, 2019. "A tale of two food stands: Observational learning in the field," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 101-108.
    12. Liverpool-Tasie, Lenis Saweda O. & Winter-Nelson, Alex, 2009. "Poverty status and the impact of social networks on smallholder technology adoption in rural Ethiopia," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49357, Agricultural and Applied Economics Association.
    13. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    14. David Spielman & Kristin Davis & Martha Negash & Gezahegn Ayele, 2011. "Rural innovation systems and networks: findings from a study of Ethiopian smallholders," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(2), pages 195-212, June.
    15. Huanxiu GUO & Mary-Françoise RENARD, 2013. "Social activity and collective action for agricultural innovation: a case study of New Rural Reconstruction in China," Working Papers 201306, CERDI.
    16. Fang, Di & Richards, Timothy, 2016. "New Maize Variety Adoption in Mozambique: A Spatial Approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235388, Agricultural and Applied Economics Association.
    17. Stephanie De Mel & Kaivan Munshi & Soenje Reiche & Hamid Sabourian, 2021. "Herding with Heterogeneous Ability: An Application to Organ Transplantation," Cowles Foundation Discussion Papers 2308, Cowles Foundation for Research in Economics, Yale University.
    18. Corazzini, Luca & Pavesi, Filippo & Petrovich, Beatrice & Stanca, Luca, 2012. "Influential listeners: An experiment on persuasion bias in social networks," European Economic Review, Elsevier, vol. 56(6), pages 1276-1288.
    19. Vivi Alatas & Abhijit Banerjee & Arun G. Chandrasekhar & Rema Hanna & Benjamin A. Olken, 2016. "Network Structure and the Aggregation of Information: Theory and Evidence from Indonesia," American Economic Review, American Economic Association, vol. 106(7), pages 1663-1704, July.
    20. Chi Feng & Yang Nathan, 2011. "Twitter Adoption in Congress," Review of Network Economics, De Gruyter, vol. 10(1), pages 1-46, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:soecon:v:73:y:2007:i:3:p:588-603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2325-8012 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.