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Estimating Level Effects In Diffusion Of A New Technology: Barcode Scanning At The Checkout Counter

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Author Info
Jonathan Beck (Humboldt Universität zu Berlin)
Michal Grajek (ESMT European School of Management and Technology)
Christian Wey (Technische Universität Berlin)

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Abstract

Cross-country or cross-industry studies of technology diffusion typically estimate how independent factors affect diffusion speed or timing, often based on a two-stage approach. In many applications, however, countries (industries) differ most in the saturation level of diffusion. In a novel, single-stage econometric approach to a standard diffusion model, we therefore estimate how the saturation level covaries with independent factors. In our application to diffusion of an important retail information technology, we focus on the competitive effect of hypermarkets (superstores). We also find standard scale, income and labor substitution effects.

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Publisher Info
Paper provided by ESMT European School of Management and Technology in its series ESMT Research Working Papers with number ESMT-07-002.

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Length: 27 pages
Date of creation: 27 Sep 2007
Date of revision:
Handle: RePEc:esm:wpaper:esmt-07-002

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Related research
Keywords: diffusion; information technology; retail competition;

Find related papers by JEL classification:
L5 - Industrial Organization - - Regulation and Industrial Policy
L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Emek Basker & Shawn Klimek & Pham Hoang Van, 2008. "Supersize It: The Growth of Retail Chains and the Rise of the "Big Box" Retail Format," Working Papers 0809, Department of Economics, University of Missouri. [Downloadable!]
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This page was last updated on 2009-12-2.


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