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The Emerging Internet Retailing Market as a Nested Diffusion Process

Author

Listed:
  • Ed Jimeniz

    (University of Illinois, USA)

  • Shane Greenstein

    (Management and Strategy, Northwestern University, Evanston IL 60208-2013, USA)

Abstract

In this essay, we analyse the diffusion of the Internet and online retailing within the standard framework of diffusion to heterogeneous consumers. We show that many conditions favour the diffusion of Internet retailing in the short run, but not in the long run. We argue that the standard framework needs to account for the "nested" diffusion process. That is, the diffusion of online retailing depends on the diffusion of many other goods, whose underlying diffusion process is also changing. An understanding of these interrelated processes leads to a richer understanding of the prospects for the long-term diffusion of online retailing.

Suggested Citation

  • Ed Jimeniz & Shane Greenstein, 1998. "The Emerging Internet Retailing Market as a Nested Diffusion Process," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 281-308.
    • Handle: RePEc:wsi:ijimxx:v:02:y:1998:i:03:n:s1363919698000134
    DOI: 10.1142/S1363919698000134
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    Cited by:

    1. Goldfarb, Avi, 2006. "The (teaching) role of universities in the diffusion of the Internet," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 203-225, March.

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