The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players
In this paper we exmine the dynamic resolution of technological adoption in "hardware/software" systems. We are interested in determinig to what extent software availability affects hardware sales and/or vice-versa. We fi rst develop a dynamic model for estimating demand when costs (and hence prices) are declining over time. When then estimate it empirically for the case of compact disc players.
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|Date of creation:||1997|
|Date of revision:|
|Contact details of provider:|| Postal: Israel TEL-AVIV UNIVERSITY, THE FOERDER INSTITUTE FOR ECONOMIC RESEARCH, RAMAT AVIV 69 978 TEL AVIV ISRAEL.|
Web page: http://econ.tau.ac.il/foerder/about
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- Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-41, August.
- Michihiro Kandori & Rafael Rob, 1997.
"Bandwagon effects and long run technology choice,"
Levine's Working Paper Archive
1265, David K. Levine.
- Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-40, June.
- Joseph Farrell & Garth Saloner, 1984.
"Standardization, Compatibility and Innovation,"
345, Massachusetts Institute of Technology (MIT), Department of Economics.
- Church, Jeffrey & Gandal, Neil, 1992. "Network Effects, Software Provision, and Standardization," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 85-103, March.
- Katz, Michael L & Shapiro, Carl, 1992. "Product Introduction with Network Externalities," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 55-83, March.
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