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Co-evolution of capabilities and preferences in the adoption of new technologies

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  • Consoli, Davide

Abstract

The objective of this paper is to propose a multidisciplinary approach for the analysis of demand and innovation. It combines insights from studies on technology diffusion, evolutionary economics and cognitive psychology to argue that consumption and demand are learning processes driven by trial-and-error, rather than by ex-ante maximization. The paper presents a heuristic synthesis to incorporate learning processes in the determination of consumption preferences and capabilities. The case of banking service innovation in the UK is presented as an illustrative example of the outlined dynamics.

Suggested Citation

  • Consoli, Davide, 2008. "Co-evolution of capabilities and preferences in the adoption of new technologies," MPRA Paper 7175, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:7175
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    File URL: https://mpra.ub.uni-muenchen.de/7175/1/MPRA_paper_7175.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Richard Nelson & Davide Consoli, 2010. "An evolutionary theory of household consumption behavior," Journal of Evolutionary Economics, Springer, vol. 20(5), pages 665-687, October.
    2. Groesser, Stefan N., 2014. "Co-evolution of legal and voluntary standards: Development of energy efficiency in Swiss residential building codes," Technological Forecasting and Social Change, Elsevier, vol. 87(C), pages 1-16.

    More about this item

    Keywords

    Demand; Innovation; Technology Adoption; Learning;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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