Sequential technology implementation, network externalities, and risk: the case of automatic milking systems


  • Johannes Sauer,

    Corresponding author
    1. Department of Economics, University of Manchester, Oxford Road, Manchester, M13 9PL, United Kingdom
    2. Institute for Agricultural Economics, University of Kiel, Olshausenstrasse 40, 24103 Kiel, Germany
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  • David Zilberman

    1. Department of Agricultural and Resource Economics, University of California, 207 Giannini Hall #3310, Berkeley, CA 94720-3310, USA
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Using random effects and mixed effects probit regression techniques, this empirical study investigates factors for technology adoption at the firm level. We account for problems of sequential technology implementation and behavior identification. Results underscore the importance of risks faced by the agents, the effects of network externalities and peer-group learning, and the positive influence of previous firm-specific innovation experiences.