Technology Adoption in the Presence of Network Externalities: A Web-Based Classroom Game

Abstract:     
This paper describes a customizable classroom game used to demonstrate the effects of network externalities on the adoption of new technologies. The game is a web-based adaptation of Ruebeck et al.'s (2003) network externalities game. The web-based game is freely available and can be played in a networked lab setting or via the Internet. In this game, players choose one of a number of competing technologies whose utility depends on the number of others choosing the same technology. In subsequent variations, we introduce sequential choice, imperfect information, heterogeneity, lock-in, and switching costs.

Number of Pages in PDF File: 26

JEL Classification: A22, A23, D62

Accepted Paper Series