Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/121173 
Year of Publication: 
2015
Series/Report no.: 
DICE Discussion Paper No. 198
Publisher: 
Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE), Düsseldorf
Abstract: 
We study the timing of new technology adoption in markets with input outsourcing, and thus with vertical relations. We find that technology adoption can take place earlier when firms engage in input outsourcing than when they produce the input in-house. Hence, the presence of vertical relations can accelerate the adoption of a new technology. We also find that particular features of a vertically related market, such as the bargaining power distribution and the contract type through which trading is conducted, can crucially affect the speed of technology adoption.
Subjects: 
technology adoption
vertical relations
outsourcing
two-part tariffs
wholesale price contracts
bargaining
JEL: 
L13
O31
L22
L41
ISBN: 
978-3-86304-197-7
Document Type: 
Working Paper

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