Working Paper: NBER ID: w24040
Authors: Emek Basker; Timothy Simcoe
Abstract: We study the adoption, diffusion, and impacts of the Universal Product Code (UPC) between 1975 and 1992, during the initial years of the barcode system. We find evidence of network effects in the diffusion process. Matched-sample difference-in-difference estimates show that firm size and trademark registrations increase following UPC adoption by manufacturers. Industry-level import penetration also increases with domestic UPC adoption. Our findings suggest that barcodes, scanning, and related technologies helped stimulate variety-enhancing product innovation and encourage the growth of international retail supply chains.
Keywords: Universal Product Code; UPC; Diffusion; Network Effects; Product Innovation
JEL Codes: L11; L15; L81; O33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| other firms adopting UPCs (L19) | manufacturer's likelihood to adopt UPCs (L15) |
| UPC registration (L81) | increased revenue (H27) |
| UPC registration (L81) | increased employment (J68) |
| UPC registration (L81) | increase in trademark applications (O34) |
| UPC registration (L81) | increased industry-level import penetration (F14) |
| UPC registration (L81) | firm growth (L26) |