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The impact of competition on technology adoption: an apples-to-PCs analysis

Adam Copeland and Adam Shapiro

No 462, Staff Reports from Federal Reserve Bank of New York

Abstract: We study the effect of market structure on a personal computer manufacturer?s decision to adopt new technology. This industry is unusual because there exist two horizontally segmented retail markets with different degrees of competition: the IBM-compatible (or PC) platform and the Apple platform. We first document that, relative to Apple, producers of PCs typically have more frequent technology adoption, shorter product cycles, and steeper price declines over the product cycle. We then develop a parsimonious vintage-capital model that matches the prices and sales of PC and Apple products. The model predicts that competition is the key driver of the rate at which technology is adopted.

Keywords: Computer industry; technological innovations; Competition (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-bec, nep-com, nep-ino, nep-mkt, nep-net and nep-tid
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Citations: View citations in EconPapers (5) Track citations by RSS feed

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Related works:
Working Paper: The Impact of Competition on Technology Adoption: An Apples-to-PCs Analysis (2010) Downloads
Working Paper: The Impact of Competition on Technology Adoption: An Apples-to-PCs Analysis (2010) Downloads
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