The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players
AbstractWe examine the diffusion of a hardware/software system. For such systems there is interdependence between the hardware-adoption decisions of consumers and the supply decisions of software manufacturers. Hence there can be bottlenecks to the diffusion of the system. We consider the CD industry and estimate the (direct) elasticity of adoption with respect to CD player prices and the (cross) elasticity with respect to the variety of CD titles. Our results show that the cross elasticity is significant. Our model can be used to quantify the effect of various policies aimed at speeding up the diffusion of a system.
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Bibliographic InfoPaper provided by Penn Economics Department in its series Penn CARESS Working Papers with number f4df6bc9bda3795823895c78628acf25.
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Other versions of this item:
- Neil Gandal & Michael Kende & Rafael Rob, 2000. "The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 43-61, Spring.
- Gandal, Neil & Kirkwood MP, Archy & Rob, Rafael, 1999. "The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players," CEPR Discussion Papers 2078, C.E.P.R. Discussion Papers.
- Neil Gandal & Michael Kende & Rafael Rob, . ""The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players''," CARESS Working Papres 97-10, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Gandal, N. & Kende, M. & Rob, R., 1997. "The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players," Papers 21-97, Tel Aviv.
- K2 - Law and Economics - - Regulation and Business Law
- L80 - Industrial Organization - - Industry Studies: Services - - - General
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