Working Paper: NBER ID: w7076
Authors: David Genesove
Abstract: This paper shows that the move to offset printing from letterpress in the U.S. daily newspaper publishing industry was determined, in part, by the structure of the local market. Although in monopoly markets, low circulation papers were quicker to adopt than high circulation papers, the ranking was reversed within duopoly markets. In such markets, the smaller firms adopted four years later than the larger one did. This result is partially consistent with preemption models of adoption. Hazard analysis further shows that in markets in which one firm has exited, the remaining duopolist is less likely to adopt than otherwise, consistent with preemption, and at odds with a declining industry explanation. Further analysis shows that the adoption was determined, at least in part, at the firm rather than the newspaper level, although, on the whole, newspaper chains adopted neither earlier nor later than non-chain newspapers. Ceteris paribus, adoption occurred more quickly in non-industrial states.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| market structure (D49) | adoption timing (C41) |
| monopoly markets (D42) | quicker adoption by low circulation papers (D16) |
| high circulation papers (Y90) | slower adoption in monopoly markets (D42) |
| duopoly markets (L13) | smaller firms adopt later than larger firms (L25) |
| firm exit in duopoly (D43) | remaining firm less likely to adopt (D22) |
| firm characteristics (L20) | technology adoption (O33) |
| non-industrial states (L69) | quicker adoption of offset technology (O33) |