dynamic analysis of the adoption of a new technology: the case of optical scanners

• Published in: The review of economics and statistics Vol. 69; no. 1; pp. 12 - 17
• Main Authors: Levin, S.G, Levin, S.L, Meisel, J.B
• Format: Journal Article
• Language: English
• Published: Cambridge, Mass Elsevier Science Publishers B.V. (North-Holland) 01-02-1987; Harvard University Press, etc; MIT Press Journals, The
• Subjects: Acceptance; computer software; Economic models; Economic theory; Emerging technology; Financial market structures; food stores; Grocery stores; Hypotheses; Industrial market; Innovation adoption; Market economies; Market entry; Market share; markets; OCR; Optical scanners; Scanners; scanning; servreq; Statistical analysis; structure; Studies; Technological innovation; Time dependence
• ISSN: 0034-6535; 1530-9142
• DOI: 10.2307/1937895

Two proportional hazard models are used to investigate the differing effects of market structure variables on the conditional probability of a firm initially adopting a new technology, optical scanners, as the innovation spreads through the food store industry. During the early stage leading firms with large average store size who are not members of chains and who operate in less concentrated markets with higher incomes and wage rates tend to adopt scanners sooner. Later on, differences in seller concentration, market share, and size become less important as other firms follow prior adoptions.