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Adoption Curves and Social Interactions

Author Info

  • William A. Brock
  • Steven N. Durlauf

Abstract

This paper considers the observational implications of social influences on adoption decisions for an environment of perfect foresight adopters. We argue that social influences can produce two observable effects: (1) discontinuities in unconditional adoption curves and (2) pattern reversals in conditional adoption curves, in which earlier adoption is found for one group of actors versus another when fundamentals suggest the reverse ordering should occur; in turn the presence of either of these features can, under weak assumptions, be interpreted as evidence of social influences. As such, these properties are robust implications of social effects. (JEL: C40, D01, O33) (c) 2010 by the European Economic Association.

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Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 8 (2010)
Issue (Month): 1 (03)
Pages: 232-251

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Handle: RePEc:tpr:jeurec:v:8:y:2010:i:1:p:232-251
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Find related papers by JEL classification:
  • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
  • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
  • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Reinganum, Jennifer F., . "On the Diffusion of New Technology: A Game Theoretic Approach," Working Papers 312, California Institute of Technology, Division of the Humanities and Social Sciences.
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  6. de Paula, Áureo, 2009. "Inference in a synchronization game with social interactions," Journal of Econometrics, Elsevier, vol. 148(1), pages 56-71, January.
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  8. William A. Brock & Steven N. Durlauf, 2000. "Interactions-Based Models," Working Papers 00-05-028, Santa Fe Institute.
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  11. Brock, William A & Durlauf, Steven N, 2001. "Discrete Choice with Social Interactions," Review of Economic Studies, Wiley Blackwell, vol. 68(2), pages 235-60, April.
  12. Adsera, Alicia & Ray, Debraj, 1998. " History and Coordination Failure," Journal of Economic Growth, Springer, vol. 3(3), pages 267-76, September.
  13. Jonathan Skinner & Douglas Staiger, 2007. "Technology Adoption from Hybrid Corn to Beta-Blockers," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 545-570 National Bureau of Economic Research, Inc.
  14. Brock, William A. & Durlauf, Steven N., 2007. "Identification of binary choice models with social interactions," Journal of Econometrics, Elsevier, vol. 140(1), pages 52-75, September.
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Cited by:

  1. repec:dgr:tuecis:wpaper:1302 is not listed on IDEAS
  2. Steven N. Durlauf & Daniel S. Nagin, 2010. "The Deterrent Effect of Imprisonment," NBER Chapters, in: Controlling Crime: Strategies and Tradeoffs, pages 43-94 National Bureau of Economic Research, Inc.
  3. M. Ali Khan & Kali P. Rath & Yeneng Sun & Haomiao Yu, 2012. "Large Games with a Bio-Social Typology," Working Papers 035, Ryerson University, Department of Economics.
  4. Paolo Zeppini & Koen Frenken & Luis R. Izquierdo, 2013. "Innovation diffusion in networks: the microeconomics of percolation," Working Papers 13-02, Eindhoven Center for Innovation Studies, revised Feb 2013.
  5. Michael D. Koenig & Xiaodong Liu & Yves Zenou, 2014. "R&D Networks: Theory, Empirics and Policy Implications," Discussion Papers 13-027, Stanford Institute for Economic Policy Research.
  6. Onur Ozgur & Alberto Bisin, 2011. "Dynamic linear economies with social interactions," Levine's Working Paper Archive 786969000000000036, David K. Levine.
  7. repec:zur:econwp:142 is not listed on IDEAS
  8. Georgarakos, Dimitris & Haliassos, Michalis & Pasini, Giacomo, 2013. "Household debt and social interactions," SAFE Working Paper Series 1, Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt.
  9. Bet Caeyers, 2014. "Exclusion bias in empirical social interaction models: causes, consequences and solutions," CSAE Working Paper Series 2014-05, Centre for the Study of African Economies, University of Oxford.
  10. Muliere, Pietro & Suverato, Davide, 2014. "Income and Wealth Distributions in a Population of Heterogeneous Agents," Discussion Papers in Economics 20928, University of Munich, Department of Economics.
  11. R. Bentley & Michael O’Brien & Paul Ormerod, 2011. "Quality versus mere popularity: a conceptual map for understanding human behavior," Mind and Society: Cognitive Studies in Economics and Social Sciences, Fondazione Rosselli, vol. 10(2), pages 181-191, December.
  12. M. Ali Khan & Kali P. Rath & Yeneng Sun & Haomiao Yu, 2011. "On Large Games with a Bio-Social Typology," Economics Working Paper Archive 585, The Johns Hopkins University,Department of Economics.
  13. Costas Azariadis & Yannis M. Ioannides, . "Thinking About Corruption in Greece," Discussion Papers Series, Department of Economics, Tufts University 0783, Department of Economics, Tufts University.

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