Advanced Search
MyIDEAS: Login

The Dynamics of Technological Adoption in Hardware/Software Systems

Contents:

Author Info

  • Neil Gandal

    ()
    (Eco, Tel Aviv and U. of Texas)

  • Michael Kende

    ()
    (INSEAD)

  • Rafael Rob

    ()
    (Eco, U. of Penn.)

Abstract

In this paper we examine the dyamic resolution of technological adoption in "hardware/software" systems. We are interested in determining to what extent software availability affects hardware sales and/or vice-versa. We first develop a dynamic model for estimating demand when costs (and license prices) are declining over time. We then estimate it empirically for the case of compact disc players. We find that there is "two-way" feedback between hardware and software for compact disc players. The result that the availability of compatible software (the CDs) plays a role in determining the adoption of compact disc players is likely due in part to the fact that compact disc players were not compatible with any existing audio standard.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.eco.utexas.edu/Ecopapers/wp9706.pdf
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Caroline Thomas)
Download Restriction: no

Bibliographic Info

Paper provided by The University of Texas at Austin, Center for Applied Research in Economics in its series CARE Working Papers with number 9706.

as in new window
Length: 28 pages
Date of creation: Oct 1997
Date of revision:
Handle: RePEc:tex:carewp:9706

Note: None
Contact details of provider:
Postal: Austin, Texas 78712
Phone: +1 (512) 471-3211
Fax: +1 (512) 471-3510
Email:
Web page: http://www.utexas.edu/cola/depts/economics/
More information through EDIRC

Related research

Keywords: Technological adoption; Complementary Products; Empirical Study;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Christopher Knittel & Victor Stango, 2005. "Compatibility and Pricing with Indirect Network Effects: Evidence from ATMs," Working Papers 525, University of California, Davis, Department of Economics.
  2. James J. McAndrews, 1997. "Network issues and payment systems," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 15-25.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:tex:carewp:9706. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Thomas).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.