Abstract:For Internet retailers, demand propagation varies not only through time but also over space. The authors develop a Bayesian spatiotemporal model to study two imitation effects in the evolution of demand at an Internet retailer. Building on previous literature, the authors allow imitation behavior to be reflected both in geographic proximity and in demographic similarity. As these imitation effects can be time varying, the authors specify their dynamics using a “polynomial smoother” embedded within the Bayesian… Show more
“…The installed base is the total number or size of the technologies adopted in the peer group. Using the installed base to explain diffusion of a product or technology has been common in the literature [16,26,[30][31][32][33][34][35][36].…”
Section: Empirical Challenges To Estimate Peer Effectsmentioning
Abstract:Empirical evidence is provided to show that peer effects have statistically significant and positive impacts on the diffusion of green building certificates. Application and approval records of green certificates by commercial buildings in NY and AZ are used. The challenge of self-selection is addressed by the usage of fixed effects and the challenge of reflection is addressed by the time lag delay between a building's application and its approval. Empirical results show that an additional approved LEED certificate within a zip code will increase the probability of a commercial building in the same zip code to apply for a LEED certificate by 3-4 percentage points; an additional approved Energy Star certificate within a zip code will increase the probability of a commercial building in the same zip code to apply for an Energy Star certificate by 1-2 percentage points.
“…The installed base is the total number or size of the technologies adopted in the peer group. Using the installed base to explain diffusion of a product or technology has been common in the literature [16,26,[30][31][32][33][34][35][36].…”
Section: Empirical Challenges To Estimate Peer Effectsmentioning
Abstract:Empirical evidence is provided to show that peer effects have statistically significant and positive impacts on the diffusion of green building certificates. Application and approval records of green certificates by commercial buildings in NY and AZ are used. The challenge of self-selection is addressed by the usage of fixed effects and the challenge of reflection is addressed by the time lag delay between a building's application and its approval. Empirical results show that an additional approved LEED certificate within a zip code will increase the probability of a commercial building in the same zip code to apply for a LEED certificate by 3-4 percentage points; an additional approved Energy Star certificate within a zip code will increase the probability of a commercial building in the same zip code to apply for an Energy Star certificate by 1-2 percentage points.
“…Our analysis is informed by the literature on the role of proximity in innovation diffusion. It has been shown that spatial proximity has a positive influence on the diffusion of innovation (Agrawal et al, 2008;Bell & Song, 2007;Bronnenberg & Mela, 2004;Choi et al, 2010;Garber et al, 2004).…”
Section: Theoretical Overview and Hypothesesmentioning
“…Previous literature has suggested that supply-side factors, such as broader product variety (Brynjolfsson, Hu, and Smith 2003;Clemons, Gao, and Hitt 2006;Hinz, Eckert, and Skiera 2011), contribute to the emergence of the long tail. Others have focused on demand-side factors, such as reduced search costs (Brynjolfsson, Hu, and Smith 2006;Cachon, Terwiesch, and Xu 2008) and preference isolation (Choi, Hui, and Bell 2010).…”
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