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This paper studies endogenous diffusion and impact of a cost-saving technological innovation -- Internet Banking. When the innovation is initially introduced, large banks have an advantage to adopt it first and enjoy further growth of size. Over time, as the innovation diffuses into smaller...
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explained as a competitive equilibrium outcome driven by the dynamic interaction between technology progress and demand … diffusion. When a new product is introduced, high-income consumers tend to adopt it first. Technology then improves with …
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