IDEAS home Printed from https://ideas.repec.org/p/tex/carewp/9706.html
   My bibliography  Save this paper

The Dynamics of Technological Adoption in Hardware/Software Systems

Author

Listed:
  • Neil Gandal

    (Eco, Tel Aviv and U. of Texas)

  • Michael Kende

    (INSEAD)

  • Rafael Rob

    (Eco, U. of Penn.)

Abstract

In this paper we examine the dyamic resolution of technological adoption in "hardware/software" systems. We are interested in determining to what extent software availability affects hardware sales and/or vice-versa. We first develop a dynamic model for estimating demand when costs (and license prices) are declining over time. We then estimate it empirically for the case of compact disc players. We find that there is "two-way" feedback between hardware and software for compact disc players. The result that the availability of compatible software (the CDs) plays a role in determining the adoption of compact disc players is likely due in part to the fact that compact disc players were not compatible with any existing audio standard.

Suggested Citation

  • Neil Gandal & Michael Kende & Rafael Rob, 1997. "The Dynamics of Technological Adoption in Hardware/Software Systems," CARE Working Papers 9706, The University of Texas at Austin, Center for Applied Research in Economics.
    • Handle: RePEc:tex:carewp:9706
    Note: None
    as

    Download full text from publisher

    File URL: http://www.eco.utexas.edu/Ecopapers/wp9706.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christopher R. Knittel & Victor Stango, 2003. "Compatibility and pricing with indirect network effects: evidence from ATMs," Working Paper Series WP-03-33, Federal Reserve Bank of Chicago.
    2. James J. McAndrews, 1997. "Network issues and payment systems," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 15-25.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tex:carewp:9706. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Caroline Thomas (email available below). General contact details of provider: https://edirc.repec.org/data/deutxus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.