Identifying The Demand For Features: An Application To Mainframe Computers

Ken Brown () and Shane Greenstein

Economics of Innovation and New Technology, 2000, vol. 9, issue 4, 353-384

Abstract: This paper examines the mainframe computer market from 1985-1991 and attempts to identify the types of buyers that demand particular computer features, such as speed and memory. To identify these buyers, demand for computer characteristics is estimated using a demand model based on Rosen (1974). Through these demand estimates we are able to show that the advent of on-line transactions processing was pushing the demand for computer speed and memory to some extent. However, beyond this specialized application, only a few industries seemed to be demanding the newest technology, while the majority of buyers continued to buy small mainframes throughout the sample period.

Date: 2000
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DOI: 10.1080/10438590000000014

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