Economics at your fingertips  

On Vertical Relations and Technology Adoption Timing

Maria Alipranti, Chrysovalantou Miliou and Emmanuel Petrakis ()
Additional contact information
Chrysovalantou Miliou: Department of Economics, Universidad Carlos III de Madrid, Calle Madrid 126, Getafe (Madrid)

Authors registered in the RePEc Author Service: Chrysovalantou Milliou ()

No 1502, Working Papers from University of Crete, Department of Economics

Abstract: This paper explores how vertical relations influence the timing of new technology adoption. It shows that both the bargaining power distribution among the vertically related firms and the contract type through which vertical trading is conducted affect crucially the speed of adoption: the downstream firms can adopt later a new technology when the upstream bargaining power increases as well as when wholesale price contracts, instead of two-part tariffs, are employed. Importantly, it shows that technology adoption can take place earlier when firms obtain their inputs from external suppliers than when they produce them in-house; hence, the presence of vertical relations can accelerate the adoption of a new technology.

Keywords: Technology adoption; vertical relations; 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: 2014-11-30
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) First version (application/pdf)

Related works:
Working Paper: On Vertical Relations and Technology Adoption Timing (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from University of Crete, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Kostis Pigounakis ().

Page updated 2021-05-27
Handle: RePEc:crt:wpaper:1502