Technology adoption: Hysteresis and absence of lock-in

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 141
Issue: C
Pages: 107-111

Authors (2)

Colla, Paolo (not in RePEc) Garcia, Filomena (Indiana University)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

We introduce a simple model of technology adoption with overlapping generations of players. Technologies generate network effects, and players are both backward- and forward-looking. We use results from the supermodular games literature to guarantee equilibrium existence and uniqueness. In line with the empirical literature, the equilibrium adoption path exhibits hysteresis and technologies cannot lock-in. We characterize the expected time of adoption, which can be seen as a measure of technology dominance.

Technical Details

RePEc Handle
repec:eee:ecolet:v:141:y:2016:i:c:p:107-111
Journal Field
General
Author Count
2
Added to Database
2026-01-25