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Vintage Effects and the Diffusion of Time-Saving Technological Innovations: The Adoption of Optical Scanners by U.S. Supermarkets."

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Author Info

  • James G. Mulligan

    () (Department of Economics,University of Delaware)

  • Nilotpal Das

    ()

Abstract

The diffusion literature implicitly assumes that a technological innovation remains homogeneous throughout the time period of the study with the sole modification being an assumed reduction in the real price of the technology over time. We argue that the technology can change in significant ways from one vintage to another to alter the nature of the diffusion process. We support this claim with estimates from non-parametric, semi-parametric and parametric duration models for the first generation of optical scanners installed in supermarkets in the U.S. between June 1974 and March 1985.

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File URL: http://www.lerner.udel.edu/economics/WorkingPapers/2004/UDWP2004-06.pdf
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Bibliographic Info

Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 04-06.

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Length: 42 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:dlw:wpaper:04-06

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Postal: Purnell Hall, Newark, Delaware 19716
Phone: (302) 831-2551
Fax: (302) 831-6968
Web page: http://www.lerner.udel.edu/departments/economics/
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Keywords: Technological change;

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References

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  1. Mark Bergen & Daniel Levy & Sourav Ray & Paul H. Rubin & Benjamin Zeliger, 2004. "When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws," Working Papers 2004-06, Department of Economics, Bar-Ilan University.
  2. Mulligan, James G, 1983. "The Economies of Massed Reserves," American Economic Review, American Economic Association, vol. 73(4), pages 725-34, September.
  3. Nancy L. Rose & Paul L. Joskow, 1990. "The Diffusion of New Technologies: Evidence from the Electric Utility Industry," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 354-373, Autumn.
  4. Jennifer F. Reinganum, 1981. "Market Structure and the Diffusion of New Technology," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 618-624, Autumn.
  5. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
  6. Francesco Caselli & Wilbur John Coleman II, 2001. "Cross-Country Technology Diffusion: The Case of Computers," NBER Working Papers 8130, National Bureau of Economic Research, Inc.
  7. Georg GÖTZ, 1996. "Monopolistic Competition and the Diffusion of New Technology," Vienna Economics Papers vie9610, University of Vienna, Department of Economics.
  8. Mulligan, James G., 1986. "Technical change and scale economies given stochastic demand and production," International Journal of Industrial Organization, Elsevier, vol. 4(2), pages 189-201, June.
  9. Fudenberg, Drew & Tirole, Jean, 1985. "Preemption and Rent Equilization in the Adoption of New Technology," Review of Economic Studies, Wiley Blackwell, vol. 52(3), pages 383-401, July.
  10. Reinganum, Jennifer F., 1981. "Technology Adoption Under Imperfect Information," Working Papers 407, California Institute of Technology, Division of the Humanities and Social Sciences.
  11. Levin, Sharon G & Levin, Stanford L & Meisel, John B, 1987. "A Dynamic Analysis of the Adoption of a New Technology: The Case of Optical Scanners," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 12-17, February.
  12. Colombo, Massimo G & Mosconi, Rocco, 1995. "Complementarity and Cumulative Learning Effects in the Early Diffusion of Multiple Technologies," Journal of Industrial Economics, Wiley Blackwell, vol. 43(1), pages 13-48, March.
  13. Silvia Massini, 2004. "The diffusion of mobile telephony in Italy and the UK: an empirical investigation," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 13(3), pages 251-277.
  14. Hannan, Timothy H & McDowell, John M, 1987. "Rival Precedence and the Dynamics of Technology Adoption: An Empirical Analysis," Economica, London School of Economics and Political Science, vol. 54(214), pages 155-71, May.
  15. Davidson, Carl, 1988. "Equilibrium in Servicing Industries: An Economic Application of Queuing Theory," The Journal of Business, University of Chicago Press, vol. 61(3), pages 347-67, July.
  16. Cabral, Ricardo & Leiblein, Michael J, 2001. "Adoption of a Process Innovation with Learning-by-Doing: Evidence from the Semiconductor Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 49(3), pages 269-80, September.
  17. James G. Mulligan & Emmanuel Llinares, 2003. "Market Segmentation and the Diffusion of Quality-Enhancing Innovations: The Case of Downhill Skiing," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 493-501, August.
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Cited by:
  1. Jonathan Beck & Michal Grajek & Christian Wey, 2005. "Hypermarket Competition and the Diffusion of Retail Checkout Barcode Scanning," Discussion Papers of DIW Berlin 523, DIW Berlin, German Institute for Economic Research.
  2. Emek Basker, 2011. "Raising the Barcode Scanner: Technology and Productivity in the Retail Sector," Working Papers 1101, Department of Economics, University of Missouri, revised 28 May 2011.
  3. James G. Mulligan & Nilotpal Das, 2005. "Persistent Adoption of Time-Saving Process Innovations," Working Papers 05-03, University of Delaware, Department of Economics.

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