Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86448
Authors: 
Aalbers, Rob
van der Heijden, Eline
Potters, Jan
van Soest, Daan
Vollebergh, Herman
Year of Publication: 
2007
Series/Report no.: 
Tinbergen Institute Discussion Paper 07-082/3
Abstract: 
We evaluate the impact of technology adoption subsidies on in- vestment behavior in an individual choice experiment. In a laboratory setting professional managers are confronted with an intertemporal decision problem in which they have to decide whether or not to search for, and possibly adopt, a new technology. Technologies differ in the per-period benefits they yield, and their purchase price increases with the per-period benefits provided. We introduce a subsidy on the more expensive technologies (that also yield the larger per-period benefits), and find that the subsidy scheme induces agents to search for and adopt these more expensive technologies even though the subsidy itself is too small to render these technologies profitable. We speculate that the result is driven by the positive connotation (affect) that the concept 'subsidy' invokes.
Subjects: 
framed field experiment
search model
technology subsidies
JEL: 
C9
D8
H2
Document Type: 
Working Paper

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