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The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players

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Author Info

  • Gandal, N.
  • Kende, M.
  • Rob, R.

Abstract

In this paper we exmine the dynamic resolution of technological adoption in "hardware/software" systems. We are interested in determinig to what extent software availability affects hardware sales and/or vice-versa. We fi rst develop a dynamic model for estimating demand when costs (and hence prices) are declining over time. When then estimate it empirically for the case of compact disc players.

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Bibliographic Info

Paper provided by Tel Aviv in its series Papers with number 21-97.

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Length: 28 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:teavfo:21-97

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Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.
Phone: 972-3-640-9255
Fax: 972-3-640-5815
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Web page: http://econ.tau.ac.il/research/foerder.asp
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Keywords: COMPUTERS ; TECHNOLOGY ; DEMAND;

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  1. Katz, Michael L & Shapiro, Carl, 1992. "Product Introduction with Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 55-83, March.
  2. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-41, August.
  3. Michihiro Kandori & Rafael Rob, 1997. "Bandwagon effects and long run technology choice," Levine's Working Paper Archive 1265, David K. Levine.
  4. Joseph Farrell & Garth Saloner, 1984. "Standardization, Compatibility and Innovation," Working papers 345, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-40, June.
  6. Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
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