Stanford L. Levin

A Dynamic Analysis of the Adoption of a New Technology: The Case of Optical Scanners

Two p roportional hazard models are used to investigate the differingeffects of marke t structure variables on the conditional probabilityof a firm initially adoptin g the new technology of optical scanners as the innovation spreads through the f ood store industry. During the early stage, leading firms with large average sto re size which are not members of chains and which operate in less concentrated m arkets with higher incomes and wage rates, tend to adopt scanners sooner. Later on, differences in seller concentration, market share, and size become less impo rtant as other firms follow prior adoptions. Copyright 1987 by MIT Press.

Measuring the economic impact of institutions of higher education

Frequently institutions of higher education commission formal studies to measure their short-term economic impact on the surrounding regions. The purpose of this paper is to identify and discuss several of the methodological considerations which arise in the design and use of economic impact studies, as well as to present new evidence regarding the effectiveness of alternative survey methods for collecting the personal expenditure data frequently used in such studies. The survey results suggest that mail surveys may yield more accurate responses regarding important personal financial information than more costly telephone interviews. This paper also offers some guidance in the design of economic impact studies and points out some of the increasing pressures to integrate studies of short-term economic impacts with analysis of higher educations impact on long-term regional economic development.

Market Structure, Uncertainty, and Intrafirm Diffusion: The Case of Optical Scanners in Grocery Stores

This study uses monthly data on the adoption of optical scanners by sixty-three grocery chains in thirty-two large U.S. cities to identify the determinants of the rate of intrafirm diffusion. The methodology involves a two-stage approach that relates market environment characteristics to the estimated rate of intrafirm diffusion. The results indicate that firms with larger market shares adopt a new innovation (scanners) more quickly initially but diffuse the innovation through their stores more slowly than firms with smaller market shares. In addition, firms that lag competitors in the initial adoption of scanners tend to diffuse the innovation more quickly. Copyright 1992 by MIT Press.

Cable television and competition : Theory, evidence and policy

There is currently widespread discussion in the USA of the merits of amending legislation to allow competition in the cable television market, notably from the telecommunications companies. This article explores what economic theory can contribute to this debate, and adduces empirical evidence on the effects of competition in the cable market where it presently exists. The authors conclude that blocking entry into cable, and indeed into telecommunications markets, is likely to be poor policy, and that increased competition would foster the development of an efficient modern broadband network.

Intermarket Differences in the Early Diffusion of an Innovation

The rate of technological change, and the rate at which the new technology diffuses through an industry, is of increasing importance in evaluating the performance of firms in an industry. Recent research efforts to understand the diffusion process include the work of Benvignati [1], Mansfield [8], Mansfield, et. al. [9], Reinganum [11], and Romeo [12; 13]. Typically, the empirical analyses trace the diffusion of the same innovation in different industries or several innovations as they diffuse through a particular industry. In contrast to these previous efforts, this paper analyzes the diffusion of a single innovation in the same industry but across different geographic markets. Since the focus is on a particular innovation, one is able to control for variables, such as the capital cost of the innovation or the potential profitability of an innovation, that otherwise would vary significantly across innovations. Since the focus is on a particular industry, it is not necessary to control for industry specific characteristics, such as type of product or extent of product differentiation, although intermarket differences may come into play in explaining the diffusion process across geographic markets. Specifically, this study analyzes the early diffusion of the optical scanner through the food store industry in the largest U.S. metropolitan areas. The early rate of diffusion of this innovation varies considerably across these markets, and this research attempts to identify economic variables that can explain the observed variation.

Telephone company ownership of rural cable television companies

In rural communities, cable companies owned by telephone companies supply basic service at a lower price than comparable cable companies not owned by telephone companies. The lower price (approximately

Local measured service: Advantages and implementation

1.20 per month) appears to be due to lower costs and economies of scope rather than to any anti-competitive actions or cross subsidies. In addition, the monthly price of basic service is positively related to the total number of channels contained in basic service and, in particular, to the number of major channels contained in the basic package. The evidence also suggests that customers purchase basic service to gain access to pay channels.

Telecommunications after competition: challenges, institutions, regulation

The interests of local exchange carriers, regulators and customers are converging on the desirability of local measured service. Competition requires it for local exchange carriers, it solves difficult problems for regulators, and it meets equity concerns of customers and offers them the opportunity for savings. This paper discusses, in particular, the regulatory problems which LMS can solve, describes a new mandatory LMS plan, implemented in the Chicago LATA in early 1987, and evaluates LMS tariff structure changes for the future.

The FCC and the Internet’s challenges to traditional regulatory policy

Purpose – The purpose of the paper is to explore the remaining aspects of telecommunications service that might require continued economic and technical regulation even after competition is present to the maximum extent feasible. The paper further explores the regulatory institutions and practices that will best accomplish this required regulation.Design/methodology/approach – The paper evaluates the traditional choices between a sector‐specific regulator and a competition authority, as well as ex post and ex ante regulation. In addition, the paper evaluates less traditional methods of regulation including laws of general application, such as consumer protection laws, alternative dispute resolution mechanisms, and self‐regulation. The characteristics of each of these means of regulation are identified, and, following a set of principles, the regulatory institutions and practices are matched to the areas of telecommunications requiring regulation.Findings – The paper identifies five areas of telecommunicat...

Broadband Adoption: Translating the Digital Divide Literature into Effective Government Policies and Actions

The United States Federal Communications Commission has taken action or is considering taking action on several controversial issues that arise from the growth of the Internet. In analyzing these issues, the Commission is applying a voice‐centric circuit‐switched telecommunications model that is based on an outdated view of the world and is attempting to protect a regulatorily created system of artificial prices and subsidies. The Commission has failed to come to grips with a new state of the world, characterized by packet networks and data traffic. This has led to a series of decisions that are ill‐suited to the new environment.