Technology Adoption in the Presence of Network Externalities: A Web-Based Classroom Game
Transactions on Education, Vol. 8, No 1, 2007
26 Pages Posted: 28 Nov 2005
Date Written: June 4, 2007
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.
JEL Classification: A22, A23, D62
Suggested Citation: Suggested Citation