DIFFUSION OF KNOWLEDGE-BASED PRODUCTS: APPLICATIONS TO DEVELOPING ECONOMIES

Demand for a knowledge-based product often must be created by the product's innovator. But the process which diffuses knowledge, and so enhances demand, accelerates decay of the company's ability to appropriate benefits generated both by the product and by the company's complementary explanation of its qualities and uses.
Decay of the ability to appropriate profit arises from a pervasive free-rider problem. Rivals, as well as users, become educated by the innovator. As the market deepens and expands, entry will become feasible for firms capable of production but incapable of supplying effective educational packages.
At least two principal themes emerge: i) logically, innovative products will be sold bundled with education and other complementary services, at least in their early stages; ii) intensity of diffusion will be sensitive to the nature of governing property-rights regimes.
The analysis suggests that, because of free-rider and other problems, an innovator often finds initial product development plans unproductive and must resort to alternatives. Feasible diffusion often requires that the product space allocated to an innovator by grants of property rights be larger (contain more dimensions) than one confined to primary invention(s).     

EXPERIENCE-DEPENDENT INFORMATION DIFFUSION AND PRODUCT QUALITY

In a monopoly market for an experience good the diffusion of product-quality information may depend on whether or not the information is favorable. To capture this asymmetry, our model uses as its information source a quality survey which suffers from response bias. Consumers may attempt to adjust for bias, but are not required to do so correctly. As a result, quality under perfect information need not be, and usually will not be, higher than quality under imperfect information. In addition, the externality exerted by informed consumers on uninformed consumers may not be the traditional beneficial externality. (JEL L15)     

THE DIFFUSION OF MEDICAL TECHNOLOGY: SOCIAL NETWORK ANALYSIS AND POLICY RESEARCH

The purpose of this article is to demonstrate how social network analysis can be used to provide information for policy decisions pertaining to physicians' adoption and utilization of new medical technology. Interviews and hospital records were used to obtain data on refenals, consultations, discussions, and on-call coverage; utilization of a computer-based hospital information system; and personal and practice characteristics from 24 physicians who belong to a private group practice. The results of a block-model analysis suggest that the physician's relative position in the network is an important determinant of his/her participation in the diffusion process. A number of policy implications related to the introduction of new medical technology into practice settings are discussed.     

A BANDWAGON EFFECT IN PERSONALIZED LICENSE PLATES?

The bandwagon effect is a consumption externality that exists when an individual's demand for a good is increased by his observation of other consumers using that good. This paper models a product demand curve with a bandwagon effect and, using data on sales of personalized license plates, estimates such a demand curve. Certain more conventional models of product demand, including information diffusion and habit formation models, are observationally similar to the bandwagon model, despite being conceptually different from it. I attempt to use the license plate data to discriminate between the bandwagon model and these other models.     

Diffusion in small worlds with homophily and social reinforcement: A theoretical model

We introduce homophily in a percolation model of word-of-mouth diffusion in social networks by reorganizing the nodes according to similarity in preferences for adoption of an innovation. Such preferences are described by a “minimum utility requirement” for an agent to adopt. We show that homophily removes the non-linear relation between preferences and diffusion in the standard percolation model with a high diffusion regime (“hit”) and a low diffusion regime (“flop”). Instead, in a model with perfect homophily, the final diffusion scales linearly with individual preferences: all agents who are willing to adopt, do adopt the innovation. We also investigate the combined effect of homophily and social reinforcement in diffusion. Results indicate that social reinforcement renders clustered networks more efficient in terms of diffusion size for network with strong homophily, while the opposite is true for networks without homophily. The simple structure of our model allows to disentangle the effect of social influence, homophily and the network structure on diffusion. However, the controllability of the theoretical structure comes at the expenses of the realism of the model. For this, we discuss possible extensions and empirical applications.     

THE DUAL‐PROCESS DRIFT DIFFUSION MODEL: EVIDENCE FROM RESPONSE TIMES

We introduce a model of response time and choice that borrows from two distinct psychological traditions. As in dual‐process models, rapid (automatic) decisions are qualitatively different from considered decisions. As in the drift diffusion model, delayed (considered) decisions occur when confidence hits a threshold level. We conduct a simple experiment in which our hybrid model matches key properties of the data. As our model predicts, decision times are bimodal, automatic decisions are of far lower quality than considered decisions, and automatic decisions are more prevalent when prior information improves, thereby raising their quality. (JEL D83, D87, C91)     

TOPICS AND GEOGRAPHICAL DIFFUSION OF KNOWLEDGE IN TOP ECONOMIC JOURNALS

We study the evolution of topics in economics and their geographical specialization by analyzing 13,233 papers from seven top journals between 1985 and 2012 and their forward citations. The share of U.S. publications declines from 75% to 64% with a corresponding increase of the European share from 12% to 24%. We use topic modeling and document the evolution of the discipline over 27 years. We estimate, with a quasi‐structural model, the citation lag distribution for 18 different topics and three large geographical areas. The modal citation lag is about 6.7 years in the entire sample and 4.8 years for citations from the top 100 journals. We quantify (1) the home bias effect in citations, (2) how it fades away over time, (3) the long lasting impact of U.S. publications vis‐à‐vis other geographical areas, and (4) the higher speed of diffusion and faster obsolescence in the United States. (JEL A14, I23, O33, A11)     

Partisan difference in social desirability bias on anti-immigrant sentiments: Covert and overt expression among French voters

Various types of anti-immigrant sentiments have been taken as the characteristic independent variable to explain specific support for radical right parties. However, some survey respondents tend to conceal their attitudes towards socially sensitive issues. To overcome this challenge, the present study used a list experiment method (item count technique) to reveal respondents' covert attitudes towards immigrants (and compared these with overt expressions) based on party support in France. Results indicated similar levels of anti-immigrant sentiments among radical right National Front supporters and other centre-rightist parties. In addition, comparison with the direct question method revealed that while supporters of centre-right parties were reluctant to express their anti-immigrant sentiment in overt expressions, National Front supporters willingly expressed it overtly more than in covert expressions. Using regression analysis, this paper demonstrates the diversity of anti-immigrant norms and the social desirability bias gap in the French political space.     

Social problem construction and national context: news reporting on "overweight" and "obesity" in the United States and France

Drawing on analyses of American and French news reports on "overweight" and "obesity," this article examines how national context—including position in a global field of nation states, as well as different national politics and culture—shapes the framing of social problems. As has been shown in previous research, news reports from France—the economically dominated but culturally dominant nation of the two—discuss the United States more often than vice versa, typically in a negative way. Our contribution is to highlight the flexibility of anti-American rhetoric, which provides powerful ammunition for a variety of social problem frames. Specifically, depending on elite interests, French news reports may invoke anti-American rhetoric to reject a given phenomenon as a veritable public problem, or they may use such rhetoric to drum up concern over an issue. We further show how diverse cultural factors shape news reporting. Despite earlier work showing that a group-based discrimination frame is more common in the United States than in France, we find that the U.S. news sample is no more likely to discuss weight-based discrimination than the French news sample. We attribute this to specific barriers to this particular framing, namely the widespread view that body size is a behavior, akin to smoking, rather than an ascribed characteristic, like race. This discussion points, more generally, to some of the mechanisms limiting the diffusion of frames across social problems.     

PRODUCTIVITY GROWTH AND TECHNOLOGICAL DIFFUSION THROUGH FOREIGN DIRECT INVESTMENT

Foreign direct investment (FDI) has dramatically increased worldwide and is the most important form of all private capital flows to developing countries. Yet, it is an important empirical question whether FDI affects total factor productivity (TFP) positively. We investigate the effect of FDI on TFP growth in a large sample of countries in 1970–2000. Our econometric results indicate that FDI has a positive and direct effect on TFP growth. However, we do not find any evidence that the impact of FDI on TFP growth is only conditional on the recipient country's capability to absorb foreign technology. We carefully address the robustness of the empirical results . ( JEL O11, O40, O47, F21)     

Stress in Childhood and Adulthood: Effects on Marital Quality Over Time

We work from a stress and life course perspective to consider how stress affects trajectories of change in marital quality over time. Specifically, we ask whether stress is more likely to undermine the quality of marital experiences at different points in the life course. In addition, we ask whether the effects of adult stress on marital quality depend on childhood family stress experiences. Growth curve analysis of data from a national longitudinal survey (Americans' Changing Lives, N = 1,059 married individuals) reveals no evidence of age differences in the effects of adult stress on subsequent trajectories of change in marital experiences. Our results, however, suggest that the effects of adult stress on marital quality may depend on childhood stress exposure. Stress in adulthood appears to take a cumulative toll on marriage over time-but this toll is paid primarily by individuals who report a more stressful childhood. This toll does not depend on the timing of stress in the adult life course.     

Polarization and the decline of the middle class: Canada and the U.S.

Several recent studies have suggested that the distribution of income (earnings, jobs) is becoming more polarized. Much of the evidence presented in support of this view consists of demonstrating that the population share in an arbitrarily chosen middle income class has fallen. However, such evidence can be criticized as being range-specific—depending on the particular cutoffs selected. In this paper we propose a range-free approach to measuring the middle class and polarization, based on partial orderings. The approach yields two polarization curves which, like the Lorenz curve in inequality analysis, signal unambiguous increases in polarization. It also leads to an intuitive new index of polarization that is shown to be closely related to the Gini coefficient. We apply the new methodology to income and earnings data from the U.S. and Canada, and find that polarization is on the rise in the U.S. but is stable or declining in Canada. A cross-country comparison reveals the U.S. to be unambiguously more polarized than Canada.     

Immigrants as brokers: dialogical diffusion from Spanish indignados to Occupy Wall Street

This article analyses the role played by Spanish immigrants in the diffusion of the indignados movement in Occupy Wall Street (OWS). I argue that Spanish residents in New York City acted as brokers between the two movements, and that their behaviour had a significant impact on OWS’s understanding of itself as an expansive, inclusive and empathic phenomenon. Building on recent theoretical developments, which stress the importance of dialogue and collective learning in the transnational diffusion of historical social movements, this research produces results at different levels. At the empirical level, the problems faced by the immigrants reveal the cultural complexity of transnational diffusion within the recent wave of contention. At the analytical level, the personal contact and intergroup dialogue established between immigrants and local activists challenge accounts stressing the role of social media and the internet within the transnational diffusion of this protest. At the theoretical level, the article develops a process-oriented perspective on brokerage, improving our understanding of its implications concerning diffusion. I argue that a longitudinal analysis of brokerage shows how interaction can modify role identity and movement diffusion: diffusion develops where brokers maintain a coordinating role in the movement, and ceases to do so where brokers are displaced from this central position.     

Development of short-form measures to assess four types of elder mistreatment: Findings from an evidence-based study of APS elder abuse substantiation decisions

Improving the standardization and efficiency of adult protective services (APS) investigations is a top priority in APS practice. Using data from the Elder Abuse Decision Support System (EADSS), we developed short-form measures of four types of elder abuse: financial, emotional/psychological, physical, and neglect. The EADSS data set contains 948 elder abuse cases (age 60+) with yes/no abuse substantiation decisions for each abuse type following a 30-day investigation. Item sensitivity/specificity analyses were conducted on long-form items with the substantiation decision for each abuse type as the criterion. Validity was further tested using receiver–operator characteristic (ROC) curve analysis, correlation with long forms and internal consistency. The four resulting short-form measures, containing 36 of the 82 original items, have validity similar to the original long forms. These short forms can be used to standardize and increase efficiency of APS investigations, and may also offer researchers new options for brief elder abuse assessments.     

Omission and commission errors in network cognition and network estimation using ROC curve

Network studies on cognitive social structures collect relational data on respondents’ direct ties and their perception of ties among all other individuals in the network. When reporting their perception networks, respondents commit two types of errors, namely, omission (false negatives) and commission (false positives) errors. We first assess the relationship between these two error types, and their contributions on overall respondent accuracy. Next we propose a method for estimating networks based on perceptions of a random sample of respondents from a bounded social network, which utilizes the receiver operator characteristic curve for balancing the tradeoffs between omission and commission errors.     

Policy diffusion as empowerment: domestic agency and the institutional dynamics of monetary policy diffusion in China

ABSTRACT

The policy diffusion literature has often focused on external pressures on domestic policy. However, by analysing the evolution of China’s monetary policy regime, we demonstrate a pattern of highly selective diffusion that is largely shaped by domestic political and institutional dynamics. We use an historical institutionalist approach to probe how the most relevant institutionally embedded agents, in this case, those within the Chinese central bank, have strategically engaged with this process. We show how selective diffusion has been shaped by epistemic policy learning through international engagement by China’s central bankers, and, in particular, how they have strategically used imported policy ideas as an institutional empowerment strategy, furthering the interests and agenda of the People’s Bank of China.     

The Missing Story of Women in Public Relations

This study proposed to advance the research on roles in public relations by considering through a feminist analysis the breadth of roles that women perform under the managerial label. Although management and technician roles have been useful as parsimonious tools to educate future public relations practitioners about public relations, these labels have begun to develop values of hierarchy and power not found when they were operationalized.

Based on a sample of 1,003 respondents, we asked for self-report data on a list of 17 role activities. The resulting factor analysis of responses by gender indicated a two-factor construct that represented managerial and technical dimensions. Further analysis of the dimensions by gender indicated that a combination of roles existed; the women managers did "it all," for less money, and the men in technical roles more likely did managerial activities as well. The women technicians carried out technical tasks.     

Network formation in the interbank money market: An application of the actor-oriented model

This paper investigates the driving forces behind banks’ link formation in the interbank market by applying the stochastic actor oriented model (SAOM). Our data consists of quarterly networks constructed from the transactions on an electronic trading platform (e-MID) for interbank credit over the period from 2001 to 2010. The analysis strongly supports the hypothesis that the existence and extent of past credit relationships is a major determinant of credit provision (i.e., link formation) in subsequent periods. We also find explanatory power of size-related characteristics, but little influence of past interest rates. The actor-based analysis, thus, confirms the prevalent view that interbank credit is mainly determined by lasting business relationships and less so by competition for the best price (interest rate). Our findings also show that topological features exert a certain influence on the network formation process. The major changes found for the period after the onset of the financial crisis are that: (1) large banks and those identified as ‘core’ intermediaries became even more sought of as counterparties and (2) indirect counterparty risk appeared to be more of a concern as we find a higher tendency to avoid indirect exposure as indicated by clustering effects.