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Item Pricing Laws, Supplier Behavior, and the Diffusion of Time-Saving Technology Innovations

  • James G. Mulligan

    ()

    (Department of Economics,University of Delaware)

  • Nilotpal Das

In this paper we provide non-parametric and parametric estimations of the initial diffusion process of point-of-sale optical scanners that illustrate the importance of controlling for supplier behavior and government regulations. In particular, we show that discrete changes in the early development of the technology followed predictably different diffusion paths depending on each vintage’s relative effect on service speed and costs of production. We also provide evidence that item-pricing laws passed in six states as consumer protection initiatives slowed down the initial diffusion of the technology at the same time as consumer acceptance of scanners was growing nation-wide.

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File URL: http://graduate.lerner.udel.edu/sites/default/files/ECON/PDFs/RePEc/dlw/WorkingPapers/2006/UDWP2006-11.pdf
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Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 06-11.

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Length: 46 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:dlw:wpaper:06-11
Contact details of provider: Postal: Purnell Hall, Newark, Delaware 19716
Phone: (302) 831-2565
Fax: (302) 831-6968
Web page: http://www.lerner.udel.edu/departments/economics/department-economics/

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  1. Hall, Bronwyn H. & Khan, Beethika, 2003. "Adoption of New Technology," Department of Economics, Working Paper Series qt3wg4p528, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  2. Fudenberg, Drew & Tirole, Jean, 1985. "Preemption and Rent Equilization in the Adoption of New Technology," Review of Economic Studies, Wiley Blackwell, vol. 52(3), pages 383-401, July.
  3. Bergen, Mark & Levy, Daniel & Ray, Sourav & Rubin, Paul & Zeliger, Ben, 2006. "When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws," MPRA Paper 1158, University Library of Munich, Germany.
  4. Caselli, Francesco & Coleman II, Wilbur John, 2001. "Cross-Country Technology Diffusion: The Case of Computers," CEPR Discussion Papers 2744, C.E.P.R. Discussion Papers.
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  10. Liikanen, Jukka & Stoneman, Paul & Toivanen, Otto, 2004. "Intergenerational effects in the diffusion of new technology: the case of mobile phones," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1137-1154, November.
  11. Daniel Levy & Mark Bergen & Shantanu Dutta & Robert Venable, 2005. "The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains," Macroeconomics 0505012, EconWPA.
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  15. Thomas, Louis A., 1999. "Adoption order of new technologies in evolving markets," Journal of Economic Behavior & Organization, Elsevier, vol. 38(4), pages 453-482, April.
  16. Georg Götz, 1999. "Monopolistic Competition and the Diffusion of New Technology," RAND Journal of Economics, The RAND Corporation, vol. 30(4), pages 679-693, Winter.
  17. Sarkar, Jayati, 1998. " Technological Diffusion: Alternative Theories and Historical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 131-76, April.
  18. Reinganum, Jennifer F., 1981. "Technology Adoption Under Imperfect Information," Working Papers 407, California Institute of Technology, Division of the Humanities and Social Sciences.
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