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Upstream, Downstream: Diffusion and Impacts of the Universal Product Code

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  • Emek Basker
  • Timothy Simcoe

Abstract

We study the adoption, diffusion, and impacts of the Universal Product Code (UPC) between 1975 and 1992, during the initial years of the bar code system. We find evidence of network effects in the diffusion process. Matched-sample difference-in-differences estimates show that firm size and trademark registrations increase following UPC adoption by manufacturers. Industry-level import penetration also increases with domestic UPC adoption. Our findings suggest that bar codes, scanning, and related technologies helped stimulate variety-enhancing product innovation and encourage the growth of international retail supply chains.

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  • Emek Basker & Timothy Simcoe, 2021. "Upstream, Downstream: Diffusion and Impacts of the Universal Product Code," Journal of Political Economy, University of Chicago Press, vol. 129(4), pages 1252-1286.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/712762
    DOI: 10.1086/712762
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    5. Emin Dinlersoz & Nathan Goldschlag & Mehmet Yorukoglu & Nikolas Zolas, 2023. "On The Role of Trademarks: From Micro Evidence to Macro Outcomes," Working Papers 23-16, Center for Economic Studies, U.S. Census Bureau.
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    8. David Argente & Munseob Lee & Sara Moreira, 2018. "How do Firms Grow? The Life Cycle of Products Matters," 2018 Meeting Papers 1174, Society for Economic Dynamics.
    9. Blind, Knut & Kenney, Martin & Leiponen, Aija & Simcoe, Timothy, 2023. "Standards and innovation: A review and introduction to the special issue," Research Policy, Elsevier, vol. 52(8).

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    More about this item

    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
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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