Department of Economics

VINTAGE EFFECTS AND THE DIFFUSION OF TIME-SAVING TECHNOLOGICAL INNOVATIONS

Department of Economics

University of Delaware

Working Paper #2004-06

VINTAGE EFFECTS AND THE DIFFUSION OF TIME-SAVING TECHNOLOGICAL INNOVATIONS: THE ADOPTION OF OPTICAL SCANNERS BY U.S. SUPERMARKETS

 Nilotpal Das* and James G. Mulligan**

  *Department of Economics and Management, Hood College

**Department of Economics, University of Delaware

ABSTRACT

The diffusion literature implicitly assumes that a technological innovation remains homogeneous throughout the time period of the study with the sole modification being an assumed reduction in the real price of the technology over time.  We argue that the technology can change in significant ways from one vintage to another to alter the nature of the diffusion process. We support this claim with estimates from non-parametric, semi-parametric and parametric duration models for the first generation of optical scanners installed in supermarkets in the U.S. between June 1974 and March 1985.

 

JEL classification numbers: O3 and L8

The Lerner College is home to a state-of-the-art financial trading facility, the $1.5 million student-led Blue Hen Investment Club, a student-managed restaurant and hotel, a high-technology development center of a global bank and a start-up experience for students with new business ideas.

Lerner College faculty - like Meryl Gardner, whose research on foods and moods was recently published in the Journal of Consumer Psychology - are thought leaders who command attention from influential business audiences, economists and policy makers.

All Lerner College departments offer discovery learning experiences and emphasize data-based analytics to enrich the student experience. Here, students at Vita Nova, our award-winning restaurant run through HRIM, joined professional chefs and winemakers in hosting a 2014 Mid-Atlantic Wine and Food Festival event.

The Institute for Financial Services Analytics is a collaboration between the Lerner College, UD's College of Engineering and JPMorgan Chase, and hosts events for academics and the business community designed to address consumer analytics and industry applications.

Undergraduate scholarships, made possible through the generosity of alumni and friends, enable us to support promising scholars. Here, Delaware Gov. Jack Markell and his mother, Leni Markell, join recipients of the William Markell Scholarship (center), which benefits students in Accounting and MIS.

  • Alfred Lerner College of Business & Economics
    303 Alfred Lerner Hall  •  Newark, DE 19716  •  USA  •  ©