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On vertical relations and the timing of technology adoption

Maria Alipranti, Chrysovalantou Milliou () and Emmanuel Petrakis ()

Journal of Economic Behavior & Organization, 2015, vol. 120, issue C, 117-129

Abstract: We study the timing of new technology adoption in markets with input outsourcing, and thus with vertical relations. We find that technology adoption can take place earlier when firms engage in input outsourcing than when they produce the input in-house. Hence, the presence of vertical relations can accelerate the adoption of a new technology. We also find that particular features of a vertically related market, such as the distribution of bargaining power and the contract type through which trading is conducted, can crucially affect the speed of technology adoption.

Keywords: Technology adoption; Vertical relations; Outsourcing; Two-part tariffs; Wholesale price contracts; Bargaining (search for similar items in EconPapers)
JEL-codes: L13 O31 L22 L41 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1016/j.jebo.2015.10.011

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Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

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