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

  • Jonathan Beck

    (Humboldt Universität zu Berlin)

  • Michal Grajek

    (ESMT European School of Management and Technology)

  • Christian Wey

    (Technische Universität Berlin)

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 novel, 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 labor substitution effects.

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Paper provided by ESMT European School of Management and Technology in its series ESMT Research Working Papers with number ESMT-07-002.

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Length: 27 pages
Date of creation: 27 Sep 2007
Date of revision:
Publication status: Published in Applied Economics 43(14): 1737–1748.
Handle: RePEc:esm:wpaper:esmt-07-002
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