Munich Personal RePEc Archive

Free riding and durable adoption: a test of color television consumption in rural China

Rong, Zhao (2011): Free riding and durable adoption: a test of color television consumption in rural China.

[img]
Preview
PDF
MPRA_paper_33434.pdf

Download (135kB) | Preview

Abstract

Using the consumption of color television sets in rural China, this paper documents the existence of a type of network effect – free riding across neighbors, which reduces the propensity of non-owners to purchase. I construct a model of timing the purchase of a durable good in the presence of free riding, and test its key implications using household survey data in rural China.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.