Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Friday, August 27, 2010

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

Posted by D. Daniel Sokol

Adam Copeland and Adam Hale Shapiro describe The impact of competition on technology adoption: an apples-to-PCs analysis.

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

http://lawprofessors.typepad.com/antitrustprof_blog/2010/08/the-impact-of-competition-on-technology-adoption-an-applestopcs-analysis-.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01348646cd8d970c

Listed below are links to weblogs that reference The impact of competition on technology adoption: an apples-to-PCs analysis :

Comments

Post a comment