The impact of competition on technology adoption: An apples-to-PCs analysis

Arbeitspapier

We study the effect of market structure on a personal computer manufacturer's decision to adopt new technology. This industry is unusual because there exist two horizontally segmented retail markets with different degrees of competition: the IBM-compatible (or PC) platform and the Apple platform. We first document that, relative to Apple, producers of PCs typically have more frequent technology adoption, shorter product cycles, and steeper price declines over the product cycle. We then develop a parsimonious vintagecapital model that matches the prices and sales of PC and Apple products. The model predicts that competition is the key driver of the rate at which technology is adopted.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Staff Report ; No. 462

Classification and Topics

• Classification: Wirtschaft ; Market Structure, Pricing, and Design: General ; Market Structure, Firm Strategy, and Market Performance: General ; Microelectronics; Computers; Communications Equipment ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
• Subject: Innovation ; market structure ; computers

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Copeland, Adam ; Shapiro, Adam Hale
• Event: Veröffentlichung
• (who): Federal Reserve Bank of New York
• (where): New York, NY
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/60780
• Last update: 10.03.2025, 11:44 AM CET