The Timing of New Technology Adoption: The Case of MRI

نویسنده

  • Philipp Schmidt-Dengler
چکیده

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 allows me to take both timing decisions and strategic interaction into account. The model can be solved using standard dynamic programming techniques. Using a panel data set of US hospitals, cross sectional variation in adoption times, market structure and demand is exploited to recover the pro…t and cost parameters of the timing game. In counterfactual experiments I decompose the cost of competition into a business stealing and a preemption e¤ect. I …nd substantial changes in adoption times and industry payo¤s due to competition. These changes are mostly due to a business stealing e¤ect. Preemption accounts for a signi…cant but small share of this

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تاریخ انتشار 2004