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A Dynamic Analysis of the Adoption of a New Technology: The Case of Optical Scanners

Sharon G. Levin, Stanford L. Levin and John B. Meisel
The Review of Economics and Statistics
Vol. 69, No. 1 (Feb., 1987), pp. 12-17
Published by: The MIT Press
DOI: 10.2307/1937895
Stable URL: http://www.jstor.org/stable/1937895
Page Count: 6
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
A Dynamic Analysis of the Adoption of a New Technology: The Case of Optical Scanners
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Abstract

Two proportional hazard models are used to investigate the differing effects of market structure variables on the conditional probability of a firm initially adopting a new technology, optical scanners, as the innovation spreads through the food store industry. During the early stage leading firms with large average store size who are not members of chains and who operate in less concentrated markets with higher incomes and wage rates tend to adopt scanners sooner. Later on, differences in seller concentration, market share, and size become less important as other firms follow prior adoptions.

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