Estimating Level Effects In Diffusion Of A New Technology: Barcode Scanning At The Checkout Counter

Jonathan Beck (), Michal Grajek and Christian Wey

No ESMT-07-002, ESMT Research Working Papers from ESMT European School of Management and Technology

Abstract: Cross-country or cross-industry studies of technology diffusion typically estimate how independent factors affect diffusion speed or timing, often based on a two-stage approach. In many applications, however, countries (industries) differ most in the saturation level of diffusion. In a novel, single-stage econometric approach to a standard diffusion model, we therefore estimate how the saturation level covaries with independent factors. In our application to diffusion of an important retail information technology, we focus on the competitive effect of hypermarkets (superstores). We also find standard scale, income and labor substitution effects.

Keywords: diffusion; information technology; retail competition (search for similar items in EconPapers)
JEL-codes: L5 L81 O33 (search for similar items in EconPapers)
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Date: 2007-09-27
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