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-adoption...

Full description

Bibliographic Details
Main Authors: Ryan, Stephen (Contributor), Tucker, Catherine Elizabeth (Contributor)
Other Authors: Massachusetts Institute of Technology. Department of Economics (Contributor), Sloan School of Management (Contributor)
Format: Article
Language:English
Published: Springer-Verlag, 2012-09-26T18:45:22Z.
Subjects:
Online Access:Get fulltext
LEADER 01601 am a22002053u 4500
001 73195
042 |a dc 
100 1 0 |a Ryan, Stephen  |e author 
100 1 0 |a Massachusetts Institute of Technology. Department of Economics  |e contributor 
100 1 0 |a Sloan School of Management  |e contributor 
100 1 0 |a Ryan, Stephen  |e contributor 
100 1 0 |a Tucker, Catherine Elizabeth  |e contributor 
700 1 0 |a Tucker, Catherine Elizabeth  |e author 
245 0 0 |a Heterogeneity and the dynamics of technology adoption 
260 |b Springer-Verlag,   |c 2012-09-26T18:45:22Z. 
856 |z Get fulltext  |u http://hdl.handle.net/1721.1/73195 
520 |a 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. 
546 |a en_US 
655 7 |a Article 
773 |t Quantitative Marketing and Economics