Relating inertia and experience in technology markets: an analysis of households' personal computer choices

Jeffrey Prince

Applied Economics, 2011, vol. 43, issue 29, 4501-4514

Abstract: This article empirically analyses how households' PC purchasing behaviours change with market experience. We find that: households generally exhibit inertia in their PC purchases, the level of inertia is increasing as a function of experience on the PC market, and, for households switching brands, the likelihood of buying a lesser-known brand increases with experience, regardless of the brand of the previous purchase. These findings are consistent with the predictions of a simple learning model, and extend our understanding of how market experience affects purchasing behaviour to an important technology product, with implications that may apply to other similar products.

Date: 2011
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DOI: 10.1080/00036846.2010.491469

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