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Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden >
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http://hdl.handle.net/10419/22743
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| Title: | | Innovation and Adoption of Electronic Business Technologies  |
| Authors: | | Sülzle, Kai |
| Issue Date: | | 2007 |
| Series/Report no.: | | Dresden discussion paper in economics 02/07 |
| Abstract: | | This paper presents a duopoly model of e-business technology adoption. A leader and a follower benefit from a new ebusiness technology with uncertain quality depending on its innovation and adoption cost and both firms' adoption timing. When innovation and adoption require large set-up costs, the leader favors quick adoption by the follower. The follower prefers either late or no adoption. This is due to a delayed firstmover benefit which stems from an innovators' capability to impose a new technology standard. It is shown that inter-firm adoption subsidies are a viable tool to quicken adoption. |
| Subjects: | | Electronic Business Adoption Innovation Network Effects |
| JEL: | | L1 O31 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden
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