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Free riding and durable adoption: a test of color television consumption in rural China

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  • Rong, Zhao

Abstract

Using the consumption of color television sets in rural China, this paper documents the existence of a type of network effect – free riding across neighbors, which reduces the propensity of non-owners to purchase. I construct a model of timing the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China.

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File URL: http://mpra.ub.uni-muenchen.de/33434/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33434.

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Date of creation: 15 Aug 2011
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Handle: RePEc:pra:mprapa:33434

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Keywords: Durables; Free Riding; Network Effects; Rural China;

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  1. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
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  14. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
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