The Dynamics of Technological Adoption in Hardware/Software Systems
AbstractIn 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 InfoIf 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.
Bibliographic InfoPaper provided by The University of Texas at Austin, Center for Applied Research in Economics in its series CARE Working Papers with number 9706.
Length: 28 pages
Date of creation: Oct 1997
Date of revision:
Contact details of provider:
Postal: Austin, Texas 78712
Phone: +1 (512) 471-3211
Fax: +1 (512) 471-3510
Web page: http://www.utexas.edu/cola/depts/economics/
More information through EDIRC
Technological adoption; Complementary Products; Empirical Study;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christopher R. Knittel & Victor Stango, 2003.
"Compatibility and pricing with indirect network effects: evidence from ATMs,"
Working Paper Series
WP-03-33, Federal Reserve Bank of Chicago.
- 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.
- Christopher R. Knittel & Victor Stango, 2004. "Compatibility and Pricing with Indirect Network Effects: Evidence from ATMs," NBER Working Papers 10774, National Bureau of Economic Research, Inc.
- Knittel, Christopher & Stango, Victor, . "Compatibility and Pricing with Indirect Network Effects: Evidence from ATMs," Working Papers 05-25, University of California at Davis, Department of Economics.
- James J. McAndrews, 1997. "Network issues and payment systems," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 15-25.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caroline Thomas).
If references are entirely missing, you can add them using this form.