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Item Pricing Laws, Supplier Behavior, and the Diffusion of Time-Saving Technology Innovations

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  • James G. Mulligan

    ()
    (Department of Economics,University of Delaware)

  • Nilotpal Das

Abstract

In this paper we provide non-parametric and parametric estimations of the initial diffusion process of point-of-sale optical scanners that illustrate the importance of controlling for supplier behavior and government regulations. In particular, we show that discrete changes in the early development of the technology followed predictably different diffusion paths depending on each vintage’s relative effect on service speed and costs of production. We also provide evidence that item-pricing laws passed in six states as consumer protection initiatives slowed down the initial diffusion of the technology at the same time as consumer acceptance of scanners was growing nation-wide.

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File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2006/UDWP2006-11.pdf
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Bibliographic Info

Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 06-11.

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Length: 46 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:dlw:wpaper:06-11

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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
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  1. 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.
  2. Mark Bergen & Daniel Levy & Sourav Ray & Paul Rubin & Benjamin Zeliger, 2004. "When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws," Emory Economics 0404, Department of Economics, Emory University (Atlanta).
  3. Karshenas, Massoud & Stoneman, Paul, 1990. "Rank, Stock, Order And Epidemic Effects In The Diffusion Of New Process Technologies : An Empirical Model," The Warwick Economics Research Paper Series (TWERPS) 358, University of Warwick, Department of Economics.
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  16. Georg GÖTZ, 1996. "Monopolistic Competition and the Diffusion of New Technology," Vienna Economics Papers vie9610, University of Vienna, Department of Economics.
  17. Silvia Massini, 2004. "The diffusion of mobile telephony in Italy and the UK: an empirical investigation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 251-277.
  18. 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.
  19. 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.
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