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Codiffusion of Technologies in Social Networks

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  • Natalia Lazzati

Abstract

This paper studies the diffusion process of two complementary technologies among people who are connected through a social network. It characterizes adoption rates over time for different initial allocations and network structures. In doing so, we provide some microfoundations for the stochastic formation of consideration sets. We are particularly interested in the following question: suppose we want to maximize technology diffusion and have a limited number of units of each of the two technologies to initially distribute—how should we allocate these units among people in the social network?

Suggested Citation

  • Natalia Lazzati, 2020. "Codiffusion of Technologies in Social Networks," American Economic Journal: Microeconomics, American Economic Association, vol. 12(4), pages 193-228, November.
    • Handle: RePEc:aea:aejmic:v:12:y:2020:i:4:p:193-228
    DOI: 10.1257/mic.20180220
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    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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