Market Access and Information Technology Adoption: Historical Evidence from the Telephone in BavariaUniversity of Oxford Department of Economics Working Paper Series (2012)
Information technology, like the telephone, inﬂuences market access; this paper answers the question about a reverse eﬀect, does market access affect information technology, in particular its adoption? Using the historical case of the introduction of the telephone in Bavaria, I demonstrate with a rank, order and stock eﬀects diﬀusion model how market access aﬀects the diﬀusion of local telephone exchanges over towns as well as the rate of adoption of telephone lines within towns. The results of a duration analysis show that market access speeds up the diﬀusion, a spatial correlation speciﬁcation demonstrates that this is not just a geographic eﬀect. Controls show that the diﬀusion was dominated by economic rather than political factors. The rate of adoption within towns is also aﬀected by the adoption of lines in other towns, the results indicate that about 4% of all lines are due to the ability to call outside your local exchange network. Market access is therefore shown to impact the adoption of technology.
Citation InformationFlorian Ploeckl. "Market Access and Information Technology Adoption: Historical Evidence from the Telephone in Bavaria" University of Oxford Department of Economics Working Paper Series (2012)
Available at: http://works.bepress.com/ploeckl/7/