Abstract

http://ssrn.com/abstract=917868
 
 

References (43)



 
 

Citations (1)



 


 



Relating Inertia and Experience in Technology Markets: An Analysis of Households' Personal Computer Choices


Jeffrey Prince


Indiana University - Kelley School of Business - Department of Business Economics & Public Policy

April 27, 2010


Abstract:     
This paper empirically analyzes how households’ PC purchasing behaviors change with market experience. We find that: households generally exhibit inertia in their PC purchases, the level of inertia is increasing as a function of experience on the PC market, and, for households switching brands, the likelihood of buying a lesser-known brand increases with experience, regardless of the brand of the previous purchase. These findings are consistent with the predictions of a simple learning model, and extend our understanding of how market experience affects purchasing behavior to an important technology product, with implications that may apply to other similar products.

Number of Pages in PDF File: 39

Keywords: Technology good, personal computer, inertia, market evolution, brand choice, true vs. spurious state dependence, durable good, consumer learning

JEL Classification: D12, L63, L11

working papers series


Download This Paper

Date posted: July 18, 2006 ; Last revised: May 13, 2014

Suggested Citation

Prince, Jeffrey, Relating Inertia and Experience in Technology Markets: An Analysis of Households' Personal Computer Choices (April 27, 2010). Available at SSRN: http://ssrn.com/abstract=917868 or http://dx.doi.org/10.2139/ssrn.917868

Contact Information

Jeffrey Prince (Contact Author)
Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )
Bloomington, IN 47405
United States

Feedback to SSRN


Paper statistics
Abstract Views: 931
Downloads: 156
Download Rank: 109,540
References:  43
Citations:  1

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.250 seconds