Abstract

http://ssrn.com/abstract=941224
 
 

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Heterogeneity and the Dynamics of Technology Adoption


Stephen Ryan


Duke University - Department of Economics

Catherine Tucker


Massachusetts Institute of Technology (MIT) - Management Science (MS)

June 19, 2011

NET Institute Working Paper No. 06-26

Abstract:     
This paper analyzes the role of individual heterogeneity in the diffusion of a network technology. Using a detailed data set on the adoption of a new videoconferencing technology within a firm, we estimate a structural model of technology adoption and use. 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 two counterfactual adoption policies, and find that a policy of strategically targeting a subtype for initial adoption can lead to a faster-growing and larger network than a policy of uncoordinated or diffuse adoption.

Number of Pages in PDF File: 68

Keywords: Dynamics, Heterogeneity, Diffusion, Network Goods, Communication Technologies, Network Effects

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Date posted: November 2, 2006 ; Last revised: August 30, 2014

Suggested Citation

Ryan, Stephen and Tucker, Catherine, Heterogeneity and the Dynamics of Technology Adoption (June 19, 2011). NET Institute Working Paper No. 06-26. Available at SSRN: http://ssrn.com/abstract=941224 or http://dx.doi.org/10.2139/ssrn.941224

Contact Information

Stephen Ryan (Contact Author)
Duke University - Department of Economics ( email )
Durham, NC 27708-0204
United States
919-660-1887 (Phone)
919-684-8974 (Fax)
HOME PAGE: http://www.econ.duke.edu/~bajari
Catherine Tucker
Massachusetts Institute of Technology (MIT) - Management Science (MS) ( email )
Cambridge, MA 02142
United States
HOME PAGE: http://cetucker.scripts.mit.edu
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