Free riding and durable adoption: a test of color television consumption in rural China

Zhao Rong

MPRA Paper from University Library of Munich, Germany

Abstract: Using the consumption of color television sets in rural China, this paper documents the existence of a type of network effect – free riding across neighbors, which reduces the propensity of non-owners to purchase. I construct a model of timing the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China.

Keywords: Durables; Free Riding; Network Effects; Rural China (search for similar items in EconPapers)
JEL-codes: D12 L68 (search for similar items in EconPapers)
Date: 2011-08-15
New Economics Papers: this item is included in nep-dev and nep-soc
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:33434

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