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

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Author Info
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://www.lerner.udel.edu/economics/WorkingPapers/2006/UDWP2006-11.pdf
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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
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Handle: RePEc:dlw:wpaper:06-11

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O3 - Economic Development, Technological Change, and Growth - - Technological Change
L8 - Industrial Organization - - Industry Studies: Services

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  18. Mark Bergen & Daniel Levy & Sourav Ray & Paul Rubin & Benjamin Zeliger, 2004. "When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws," Law and Economics 0405005, EconWPA, revised 02 Jun 2005. [Downloadable!]
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  19. Massoud Karshenas & Paul L. Stoneman, 1993. "Rank, Stock, Order, and Epidemic Effects in the Diffusion of New Process Technologies: An Empirical Model," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 503-528, Winter. [Downloadable!] (restricted)
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