Adoption of Technologies with Network Effects: An Empirical Examination of the Adoption of Teller Machines
The networks literature suggests a network's value increases in the number of locations it serves (the "network effect") and the number of its users (the "production scale effect"). We show this implies a firm's expected time until adoption of a network technology declines in both users and locations. Using data on banks' adoptions of automated teller machines over 1972-1979, we show that adoption delays decline in the number of branches (a proxy for the number of locations and hence the network effect) and the value of deposits (a proxy for number of users and hence for production scale economies) as predicted.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 26 (1995)
Issue (Month): 3 (Autumn)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:26:y:1995:i:autumn:p:479-501. 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: ()
If references are entirely missing, you can add them using this form.