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Technological Diffusion Through Profit Seeking And Epidemic Information Processes

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  • Espen Bratberg
  • Alf Erling Risa

Abstract

Explanations of technological diffusion focus on information being spread by epidemic processes, on profit heterogeneity, or oligopolistic competition. The model in this paper integrates the epidemic and the heterogeneity-based approaches. Predictions are tested on Norwegian data concerning the diffusion of laboratory equipment in primary health care. The empirical analysis shows that both diffusion of information, and profitability considerations, are significant factors in explaining technological diffusion. The integrated model performs significantly better than any submodel. Our analysis also gives indications of the impact of public reimbursement policies on physician behavior.

Suggested Citation

  • Espen Bratberg & Alf Erling Risa, 1995. "Technological Diffusion Through Profit Seeking And Epidemic Information Processes," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(1), pages 27-40.
    • Handle: RePEc:taf:ecinnt:v:4:y:1995:i:1:p:27-40
    DOI: 10.1080/10438599500000012
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    References listed on IDEAS

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    1. Klausen, Liv Marit & Olsen, Trond E. & Risa, Alf Erling, 1992. "Technological diffusion in primary health care," Journal of Health Economics, Elsevier, vol. 11(4), pages 439-452, December.
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    5. Massoud Karshenas & Paul L. Stoneman, 1993. "Rank, Stock, Order, and Epidemic Effects in the Diffusion of New Process Technologies: An Empirical Model," RAND Journal of Economics, The RAND Corporation, vol. 24(4), pages 503-528, Winter.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Technological diffusion; epidemic processes; physician behavior J.E.L. classification numbers: O33; I11;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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