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Title:Innovation and Adoption of Electronic Business Technologies PDF Logo
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
Network Effects
Document Type:Working Paper
Appears in Collections:Dresden Discussion Paper Series in Economics, Faculty of Business and Economics, TU Dresden

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