Role of complementarities in technology adoption: The case of DVD players

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Abstract

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.

Original languageEnglish (US)
Pages (from-to)179-210
Number of pages32
JournalQuantitative Marketing and Economics
Volume9
Issue number2
DOIs
StatePublished - Jun 1 2011

Keywords

  • Complementarity
  • Diffusion
  • Indirect network effects
  • New technology

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