"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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Levine's Working Paper Archive
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