Herd Behavior, the \"Penguin Effect\", and the Suppression of Informational Diffusion: An Analysis of Informational Externalities and Payoff Interdependency

Jay Pil Choi
This paper analyzes a technology adoption process in which the effect of informational spillover interacts with network externalities. It is shown that the interplay of informational externalities and payoff interdependency induces risk averse and clustering behavior in the technology adoption process. our analysis differs from the herd behavior literature in focusing on how the herd behavior of subsequent users influences the initial adoption decision. The mechanism through which herd behavior is generated is also quite...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.