Diffusion as a Learning Process: Evidence from HYV Cotton
This paper develops new methods for studying the adoption of technologies that, at the time of their introduction, are of uncertain profitability. We focus on the rols played by learning in the evolution of a diffusion path and present a model that allows learning from the behavior of others as well as from the adopter's own experience. Equilibrium behavior explicitly allows for interaction between individuals when information is a public good. We consider both cooperative and non-cooperative models and apply our model to the adoption of HYV cotton in the semi-arid tropics, using data from ICRISAT village level surveys.
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