This paper estimates complementarities between DVD player adoption and availability of content on DVD. We use household level quasi-panel data on adoption decisions of 47,893 unique households; monthly data on the availability of movies for rental on DVD at 140 different local regions, and monthly data on the number of movies released on DVD nationally. We focus on an early period after the technology launch (2000-2001), and estimate statistically and economically significant complementarities.
- Indirect network effects
- New technology