Market Segmentation and the Diffusion of Quality-Enhancing Innovations: The Case of Downhill Skiing

A-Tier
Journal: Review of Economics and Statistics
Year: 2003
Volume: 85
Issue: 3
Pages: 493-501

Authors (2)

James G. Mulligan (University of Delaware) Emmanuel Llinares (not in RePEc)

Score contribution per author:

2.018 = (α=2.02 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We report econometric results concerning the diffusion of detachable chairlifts in the United States that provide the first empirical evidence that the adoption of a technological innovation by a firm decreases the likelihood that a local competitor will also adopt it. We model the effect that an innovation in service speed has on a f's incentive to differentiate the quality of its service from that of its competitors. In our model, the incentive to adopt is negatively related to the number of competitors who have already adopted. Our empirical results support this hypothesis. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Technical Details

RePEc Handle
repec:tpr:restat:v:85:y:2003:i:3:p:493-501
Journal Field
General
Author Count
2
Added to Database
2026-01-26