Market Access and Information Technology Adoption: Historical Evidence from the Telephone in Bavaria
AbstractInformation technology, like the telephone, influences market access; this paper answers the question about a reverse effect, does market access affect information technology, in particular its adoption?� Using the introduction of the telephone in Bavaria, I demonstrate with a rank, order and stock effects diffusion model how market access affects the diffusion of local telephone exchanges over towns as well as the rate of adoption of telelphone lines within towns.� The results of a duration analysis show that market access speeds up the diffusion, a spatial correlation specification demonstrates that this is not just a geographic effect.� The rate of adoption within towns is also affected by the adoption of lines in other towns, the results indicate that about 4% of all lines are due to the ability to call outside your local exchange network.� Market access is therefore shown to impact the adoption of technology.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 620.
Date of creation: 03 Sep 2012
Date of revision:
Information technology adoption; Market access; Spatial diffusion; Bavaria; Telephone;
Find related papers by JEL classification:
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
- N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-22 (All new papers)
- NEP-HIS-2012-09-22 (Business, Economic & Financial History)
- NEP-ICT-2012-09-22 (Information & Communication Technologies)
- NEP-IND-2012-09-22 (Industrial Organization)
- NEP-NET-2012-09-22 (Network Economics)
- NEP-URE-2012-09-22 (Urban & Real Estate Economics)
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