The Role of Product Innovation on the Diffusion of Mobile Telephone
AbstractMost existing empirical work on technology diffusion assumes technologies to remain constant throughout the diffusion process. However, many consumer technologies improve significantly over time. Using data on the characteristics of new mobile handsets over a ten-year period and controlling for potential endogeneity problems, we find that handset quality and variety had a significant impact on the global diffusion of mobile telephony. Our estimation results further suggest that earlier empirical studies on diffusion may have attributed too much of diffusion to network effects.
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Bibliographic InfoPaper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1200.
Length: 17 pages
Date of creation: 2009
Date of revision:
Find related papers by JEL classification:
- L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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