The Timing of New Technology Adoption
- Author(s)
- Philipp Schmidt-Dengler
- Abstract
This paper studies the adoption of nuclear magnetic resonance imaging (MRI) by US hospitals. I consider a timing game of new technology adoption. The dynamic game takes timing decisions and strategic interaction into account. Using a panel data set of US hospitals, cross sectional variation in adoption times, market structure and demand is exploited to recover the profit and cost parameters. In counterfactuals, I quantify to what extent the timing of adoption is caused by a preemptive motive. I find a small but significant effect of preemptive motives, which are weakened by firm asymmetry.
- Organisation(s)
- Department of Economics
- Journal
- RAND Journal of Economics
- Volume
- 56
- Pages
- 511-527
- No. of pages
- 17
- ISSN
- 0741-6261
- DOI
- https://doi.org/10.1111/1756-2171.70022
- Publication date
- 11-2025
- Peer reviewed
- Yes
- Austrian Fields of Science 2012
- 502013 Industrial economics
- ASJC Scopus subject areas
- Economics and Econometrics
- Portal url
- https://ucrisportal.univie.ac.at/en/publications/c1ef196c-1eff-4a3d-aab1-4e776db4f5a1