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.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Durables, Free Riding, Network Effects, Rural China
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis; L - Industrial Organization > L6 - Industry Studies: Manufacturing > L68 - Appliances ; Furniture ; Other Consumer Durables

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