Heterogeneity and the dynamics of technology adoption
We estimate the demand for a videocalling technology in the presence of both network effects and heterogeneity. Using a unique dataset from a large multinational firm, we pose and estimate a fully dynamic model of technology adoption. We propose a novel identification strategy based on post-adoptio...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Article |
| Language: | en_US |
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Springer-Verlag
2012
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| Online Access: | http://hdl.handle.net/1721.1/73195 https://orcid.org/0000-0002-1847-4832 |
| _version_ | 1826212980847542272 |
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| author | Ryan, Stephen Tucker, Catherine Elizabeth |
| author2 | Massachusetts Institute of Technology. Department of Economics |
| author_facet | Massachusetts Institute of Technology. Department of Economics Ryan, Stephen Tucker, Catherine Elizabeth |
| author_sort | Ryan, Stephen |
| collection | MIT |
| description | We estimate the demand for a videocalling technology in the presence of both network effects and heterogeneity. Using a unique dataset from a large multinational firm, we pose and estimate a fully dynamic model of technology adoption. We propose a novel identification strategy based on
post-adoption technology usage to disentangle equilibrium beliefs concerning the evolution of the network from observed and unobserved heterogeneity in technology adoption costs and use benefits. We find that employees have significant heterogeneity in both adoption costs and network benefits, and have preferences for diverse networks. Using our estimates, we evaluate a number of counterfactual adoption policies, and find that a policy of strategically targeting the right subtype for initial adoption can lead to a faster-growing and larger network than a policy of uncoordinated or diffuse adoption. |
| first_indexed | 2024-09-23T15:41:31Z |
| format | Article |
| id | mit-1721.1/73195 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T15:41:31Z |
| publishDate | 2012 |
| publisher | Springer-Verlag |
| record_format | dspace |
| spelling | mit-1721.1/731952022-09-29T15:30:44Z Heterogeneity and the dynamics of technology adoption Ryan, Stephen Tucker, Catherine Elizabeth Massachusetts Institute of Technology. Department of Economics Sloan School of Management Ryan, Stephen Tucker, Catherine Elizabeth We estimate the demand for a videocalling technology in the presence of both network effects and heterogeneity. Using a unique dataset from a large multinational firm, we pose and estimate a fully dynamic model of technology adoption. We propose a novel identification strategy based on post-adoption technology usage to disentangle equilibrium beliefs concerning the evolution of the network from observed and unobserved heterogeneity in technology adoption costs and use benefits. We find that employees have significant heterogeneity in both adoption costs and network benefits, and have preferences for diverse networks. Using our estimates, we evaluate a number of counterfactual adoption policies, and find that a policy of strategically targeting the right subtype for initial adoption can lead to a faster-growing and larger network than a policy of uncoordinated or diffuse adoption. 2012-09-26T18:45:22Z 2012-09-26T18:45:22Z 2011-08 2009-12 Article http://purl.org/eprint/type/JournalArticle 1570-7156 1573-711X http://hdl.handle.net/1721.1/73195 Ryan, Stephen P., and Catherine Tucker. “Heterogeneity and the Dynamics of Technology Adoption.” Quantitative Marketing and Economics 10.1 (2011): 63–109. https://orcid.org/0000-0002-1847-4832 en_US http://dx.doi.org/10.1007/s11129-011-9109-0 Quantitative Marketing and Economics Creative Commons Attribution-Noncommercial-Share Alike 3.0 http://creativecommons.org/licenses/by-nc-sa/3.0/ application/pdf Springer-Verlag MIT web domain |
| spellingShingle | Ryan, Stephen Tucker, Catherine Elizabeth Heterogeneity and the dynamics of technology adoption |
| title | Heterogeneity and the dynamics of technology adoption |
| title_full | Heterogeneity and the dynamics of technology adoption |
| title_fullStr | Heterogeneity and the dynamics of technology adoption |
| title_full_unstemmed | Heterogeneity and the dynamics of technology adoption |
| title_short | Heterogeneity and the dynamics of technology adoption |
| title_sort | heterogeneity and the dynamics of technology adoption |
| url | http://hdl.handle.net/1721.1/73195 https://orcid.org/0000-0002-1847-4832 |
| work_keys_str_mv | AT ryanstephen heterogeneityandthedynamicsoftechnologyadoption AT tuckercatherineelizabeth heterogeneityandthedynamicsoftechnologyadoption |