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Local Externalities and Societal Adoption of Technologies

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  • An, M Y
  • Kiefer, N M

Abstract

In this paper we study the effect of local network externalities on the societal adoption of competing technologies. Three cases are examined: single non-sponsored technology, single sponsored technology, and two non-sponsored technologies. The efficiency and predictability of the technology adoption process for each case is investigated. We demonstrate non-predictability for single technology case and efficiency for the two technology case. We show the firm sponsoring a technology may choose a strategy that leads to the extinction of the technology.

Suggested Citation

  • An, M Y & Kiefer, N M, 1995. "Local Externalities and Societal Adoption of Technologies," Journal of Evolutionary Economics, Springer, vol. 5(2), pages 103-117, June.
    • Handle: RePEc:spr:joevec:v:5:y:1995:i:2:p:103-17
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    Citations

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    Cited by:

    1. Fré Dé & Ric Deroian, 2001. "Morphogenesis Of Social Networks And Coexistence Of Technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(6), pages 427-448.
    2. Sauer, Johannes & Zilberman, David, 2009. "Innovation Behaviour At Farm Level – Selection And Identification," 83rd Annual Conference, March 30 - April 1, 2009, Dublin, Ireland 51073, Agricultural Economics Society.
    3. Yang, Guang-Yong & Hu, Zhao-Long & Liu, Jian-Guo, 2015. "Knowledge diffusion in the collaboration hypernetwork," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 419(C), pages 429-436.
    4. Sauer, J. & Zilbermann, D., 2010. "Innovation Behaviour At Farm Level – Selection And Identification," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 45, March.
    5. Robin Cowan & William Cowan & G.M. Peter Swann, 2004. "Waves in consumption with interdependence among consumers," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(1), pages 149-177, February.
    6. Marian Beise, 2003. "Lead Markets: Drivers of the Global Diffusion of Innovations," Discussion Paper Series 141, Research Institute for Economics & Business Administration, Kobe University.
    7. Xiong, Hang & Payne, Diane & Kinsella, Stephen, 2016. "Peer effects in the diffusion of innovations: Theory and simulation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 1-13.
    8. Joachim Henkel & Jörn Block, 2013. "Peer influence in network markets: a theoretical and empirical analysis," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 925-953, November.
    9. Sauer, Johannes & Zilberman, David, 2009. "Innovation behaviour at micro level - selection and identification," CUDARE Working Papers 120636, University of California, Berkeley, Department of Agricultural and Resource Economics.
    10. Cowan, Robin & Cowan, William, 1998. "Technological Standardization with and without Borders in an Interacting Agents Model," Research Memorandum 015, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    11. Yoo, Do-il, 2012. "Individual and Social Learning in Bio-technology Adoption: The Case of GM Corn in the U.S," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124975, Agricultural and Applied Economics Association.
    12. Liangjie Zhao & Wenqi Duan, 2014. "Simulating the Evolution of Market Shares: The Effects of Customer Learning and Local Network Externalities," Computational Economics, Springer;Society for Computational Economics, vol. 43(1), pages 53-70, January.
    13. Beise, Marian, 2004. "Lead markets: country-specific drivers of the global diffusion of innovations," Research Policy, Elsevier, vol. 33(6-7), pages 997-1018, September.

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