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Estimating level effects in diffusion of a new technology: barcode scanning at the checkout counter

  • Jonathan Beck
  • Michal Grajek
  • Christian Wey

Cross-country or cross-industry studies of technology diffusion typically estimate how independent factors affect diffusion speed or timing, often based on a two-stage approach. In many applications, however, countries (industries) differ most in the saturation level of diffusion. In a single-stage econometric approach to a standard diffusion model, we therefore estimate how the saturation level covaries with independent factors. In our application to diffusion of an important retail information technology, we focus on the competitive effect of hypermarkets (superstores). We also find standard scale, income and labour substitution effects.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 43 (2011)
Issue (Month): 14 ()
Pages: 1737-1748

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Handle: RePEc:taf:applec:v:43:y:2011:i:14:p:1737-1748
DOI: 10.1080/00036840802600624
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  12. Dixon, Robert J, 1980. "Hybrid Corn Revisited," Econometrica, Econometric Society, vol. 48(6), pages 1451-61, September.
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  15. Karshenas, Massoud & Stoneman, Paul, 1990. "Rank, Stock, Order And Epidemic Effects In The Diffusion Of New Process Technologies : An Empirical Model," The Warwick Economics Research Paper Series (TWERPS) 358, University of Warwick, Department of Economics.
  16. Howard Smith & Donald Hay, 2005. "Streets, Malls, and Supermarkets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(1), pages 29-59, 03.
  17. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
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