IDEAS home Printed from https://ideas.repec.org/a/bla/jindec/v43y1995i2p173-95.html
   My bibliography  Save this article

Technological Diffusion with Social Learning

Author

Listed:
  • Kapur, Sandeep

Abstract

This paper attributes the slow diffusion of innovations to an informational externality in the adoption process. The profitability of new technologies is uncertain but firing can learn progressively through observing the adoption experience of others. Given this prospect of social learning, every firm would prefer that other firms adopt before it does. In the absence of explicit coordination, the firms could end up in a sequence of waiting contests. This results in staggered adoptions even when all firms are ex ante identical. The pace of diffusion is determined endogenously and shown to depend on the characteristics of the innovation. Copyright 1995 by Blackwell Publishing Ltd.

Suggested Citation

  • Kapur, Sandeep, 1995. "Technological Diffusion with Social Learning," Journal of Industrial Economics, Wiley Blackwell, vol. 43(2), pages 173-195, June.
  • Handle: RePEc:bla:jindec:v:43:y:1995:i:2:p:173-95
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1821%28199506%2943%3A2%3C173%3ATDWSL%3E2.0.CO%3B2-J&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Geroski, P. A. & Mazzucato, M., 2001. "Modelling the dynamics of industry populations," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1003-1022, July.
    2. Oriana Bandiera & Imran Rasul, 2006. "Social Networks and Technology Adoption in Northern Mozambique," Economic Journal, Royal Economic Society, vol. 116(514), pages 869-902, October.
    3. Chatzimichael, Konstantinos & Genius, Margarita & Tzouvelekas, Vangelis, 2014. "Informational cascades and technology adoption: Evidence from Greek and German organic growers," Food Policy, Elsevier, vol. 49(P1), pages 186-195.
    4. Giovannetti, Emanuele, 2001. "Perpetual Leapfrogging in Bertrand Duopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(3), pages 671-696, August.
    5. Fang, Di & Richards, Timothy, 2016. "New Maize Variety Adoption in Mozambique: A Spatial Approach," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235388, Agricultural and Applied Economics Association.
    6. Daron Acemoglu & Kostas Bimpikis & Asuman Ozdaglar, 2011. "Experimentation, Patents, and Innovation," American Economic Journal: Microeconomics, American Economic Association, vol. 3(1), pages 37-77, February.
    7. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
    8. Alfonso Miranda, 2003. "Socio-economic characteristics, completed fertility, and the transition from low to high order parities in Mexico," Labor and Demography 0308001, EconWPA.
    9. Yoo, Do-il, 2012. "Individual and Social Learning in Bio-technology Adoption: The Case of GM Corn in the U.S," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124975, Agricultural and Applied Economics Association.
    10. Tetsuya Kasahara, 2015. "Strategic Technology Adoption Under Dispersed Information and Information Learning," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 12(06), pages 1-18, December.
    11. Naef, Michael & Sontuoso, Alessandro, 2015. "Conformist Preferences in Mixed-Motive Games," MPRA Paper 66965, University Library of Munich, Germany.
    12. H. Peyton Young, 2009. "Innovation Diffusion in Heterogeneous Populations: Contagion, Social Influence, and Social Learning," American Economic Review, American Economic Association, vol. 99(5), pages 1899-1924, December.
    13. Hoppe, Heidrun C., 2000. "Second-mover advantages in the strategic adoption of new technology under uncertainty," International Journal of Industrial Organization, Elsevier, vol. 18(2), pages 315-338, February.
    14. Theoharakis, Vasilis & Vakratsas, Demetrios & Wong, Veronica, 2007. "Market-level information and the diffusion of competing technologies: An exploratory analysis of the LAN industry," Research Policy, Elsevier, vol. 36(5), pages 742-757, June.
    15. Swann, G. M. Peter, 2001. "Sales practice and market evolution: the case of virtual reality," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1119-1139, July.
    16. Alexandre Steyer & Jean-Benoît Zimmermann, 1998. "Étude empirique de l'influence sociale dans les phénomènes de diffusion : l'exemple du câble et du fax en France," Économie et Prévision, Programme National Persée, vol. 135(4), pages 109-119.
    17. Theoharakis Vasilis & Vakratsas Demetrios & Wong Veronica, 2004. "The Relationship between Market Share and Information in a High-Tech Industry," Review of Marketing Science, De Gruyter, vol. 2(1), pages 1-14, January.
    18. Corrocher, Nicoletta & Fontana, Roberto, 2008. "Objectives, obstacles and drivers of ICT adoption: What do IT managers perceive?," Information Economics and Policy, Elsevier, vol. 20(3), pages 229-242, September.
    19. Fabrizio, Kira R. & Hawn, Olga, 2013. "Enabling diffusion: How complementary inputs moderate the response to environmental policy," Research Policy, Elsevier, vol. 42(5), pages 1099-1111.
    20. Sarkar, Jayati, 1998. " Technological Diffusion: Alternative Theories and Historical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 131-176, April.
    21. Jeffrey S. McCullough, 2008. "The adoption of hospital information systems," Health Economics, John Wiley & Sons, Ltd., vol. 17(5), pages 649-664.
    22. James G. Mulligan & Nilotpal Das, 2005. "Persistent Adoption of Time-Saving Process Innovations," Working Papers 05-03, University of Delaware, Department of Economics.
    23. Deroian, Frederic, 2002. "Formation of social networks and diffusion of innovations," Research Policy, Elsevier, vol. 31(5), pages 835-846, July.
    24. Groesser, Stefan N., 2014. "Co-evolution of legal and voluntary standards: Development of energy efficiency in Swiss residential building codes," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 1-16.
    25. Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 107-129.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:43:y:1995:i:2:p:173-95. 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: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821 .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.