Technological Choice and Network Externalities: A Catastrophe Model Analysis of Firm Software Adoption for Competing Operating Systems

29 Pages Posted: 23 Mar 2006

See all articles by Rense Lange

Rense Lange

Illinois State Board of Education

Sean McDade

The Gallup Organization

Terence A. Oliva

Independent

Abstract

This paper presents an empirical estimation of catastrophe model of organizational adoptions of a high technology product when network externalities are present. As such, it integrates work from the economics literature and the catastrophe literature to provide a broadeer look at adoption issues. Additionally, it is one of the few empirical studies we are aware of that attempts to model organizational adoption of high-technology products for use rather than for manufacture.

Keywords: Nonlinear Dynamics, Network Externalities, Organizational Adoption, High-Technology Products, Bandwagons

JEL Classification: 032, C59, D21

Suggested Citation

Lange, Rense and McDade, Sean and Oliva, Terence A., Technological Choice and Network Externalities: A Catastrophe Model Analysis of Firm Software Adoption for Competing Operating Systems. Structural Change and Economic Dynamics, Vol. 12, pp. 29-57, 2001, Available at SSRN: https://ssrn.com/abstract=889583

Rense Lange

Illinois State Board of Education ( email )

100 N. 1st Street
Springfield, IL 62777
United States

Sean McDade

The Gallup Organization

502 Carnegie Center, Suite 300
Princeton, NJ 08540
United States

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