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Free riding and durable adoption: a test of color television consumption in rural China

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  • Rong, Zhao

Abstract

Using the consumption of color television sets in rural China, this paper documents the existence of a type of network effect – free riding across neighbors, which reduces the propensity of non-owners to purchase. I construct a model of timing the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China.

Suggested Citation

  • Rong, Zhao, 2011. "Free riding and durable adoption: a test of color television consumption in rural China," MPRA Paper 33434, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:33434
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    More about this item

    Keywords

    Durables; Free Riding; Network Effects; Rural China;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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