Estimating Level Effects in Diffusion of a New Technology: Barcode Scanning at the Checkout Counter

27 Pages Posted: 20 Dec 2007 Last revised: 25 Jun 2016

See all articles by Jonathan Beck

Jonathan Beck

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Michal Grajek

ESMT European School of Management and Technology

Christian Wey

University of Düsseldorf - Düsseldorf Institute for Competition Economics (DICE)

Date Written: September 27, 2007

Abstract

Cross-country or cross-industry studies of technology diffusion typically estimate how independent factors affect diffusion speed or timing, often based on a two-stage approach. In many applications, however, countries (industries) differ most in the saturation level of diffusion. In a novel, single-stage econometric approach to a standard diffusion model, we therefore estimate how the saturation level co-varies with independent factors. In our application to diffusion of an important retail information technology, we focus on the competitive effect of hypermarkets (superstores). We also find standard scale, income and labor substitution effects.

Keywords: diffusion, information technology, retail competition

JEL Classification: L5, L81, O33

Suggested Citation

Beck, Jonathan and Grajek, Michal and Wey, Christian, Estimating Level Effects in Diffusion of a New Technology: Barcode Scanning at the Checkout Counter (September 27, 2007). ESMT Working Paper No. 07-002, Available at SSRN: https://ssrn.com/abstract=1072902 or http://dx.doi.org/10.2139/ssrn.1072902

Jonathan Beck (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Kaulbachstr. 45
Munich, DE 80539
Germany

HOME PAGE: http://www.ice.bwl.uni-muenchen.de/personen/assoziierte/beck/index.html

Michal Grajek

ESMT European School of Management and Technology ( email )

Schlossplatz 1
Berlin, 10178
Germany

Christian Wey

University of Düsseldorf - Düsseldorf Institute for Competition Economics (DICE) ( email )

Universitaetsstr. 1
Duesseldorf, NRW 40225
Germany
+49-211-81-15009 (Phone)
+49-211-81-15499 (Fax)

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