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Author: | Gandal, N. Kende, M. Rob, R. |
Title: | The dynamics of technological adoption in hardware/ software systems: the case of compact disc players |
Journal: | RAND Journal of Economics
2000 : SPRING, VOL. 31:1, p. 43-61 |
Index terms: | SOFTWARE SYSTEMS THEORY MANUFACTURING |
Language: | eng |
Abstract: | The authors examine diffusion of hardware/software system. For such systems there is interdependence between the hardware-adoption decisions of consumers and the supply of the system. The authors consider the CD industry and estimate the (direct) elasticity of adoption with respect to CD player prices and the (cross) elasticity with respect to the variety of CD titles. The authors' results show that the cross elasticity is significant. |
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