The RAND Journal of Economics· 2025Q1
The Timing of New Technology Adoption: The Case of MRI
- 76citations
- Q1SCImago
- 2025year
Short summary
US hospitals adopted MRI technology primarily driven by profit and cost factors, with a small but significant preemptive motive influencing adoption timing, especially in symmetric markets.
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Key points
- Analyzes MRI adoption timing in US hospitals using a dynamic game model.
- Recovers profit and cost parameters by exploiting cross-sectional and panel data variations.
- Quantifies the influence of preemptive motives on technology adoption timing.
- Finds a small but significant effect of preemptive motives, weakened by firm asymmetry.
AI-generated from the title and abstract; the full text is not read.
Abstract
ABSTRACT 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 takes timing decisions and strategic interaction into account. Using a panel data set of US hospitals, cross sectional variation in adoption times, market structure and demand is exploited to recover the profit and cost parameters. In counterfactuals, I quantify to what extent the timing of adoption is caused by a preemptive motive. I find a small but significant effect of preemptive motives, which are weakened by firm asymmetry.
The authors' abstract, as published at the source. The RAND Journal of Economics, 2025 · DOI ↗
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Field: Economics and Econometrics
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