Rivalry, Market Structure and Innovation: The Case of Mobile Banking

Rivalry, Market Structure and Innovation: The Case of Mobile Banking This paper focuses on a novel phenomenon—mobile banking diffusion—to illuminate unresolved questions: whether and how rivalry adoption and market structure affect the diffusion of a new technology. Using a unique, hand-collected dataset from the iTunes Store for 2008–2012, this study provides evidence that the adoptions of mobile banking apps by local rivals spur future adoptions. This effect is particularly strong in concentrated markets, where banks compete on non-price attributes. These results are robust to the application of instrumental variables that address the possibility that adoptions are merely simultaneous reactions to the same common forces. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Rivalry, Market Structure and Innovation: The Case of Mobile Banking

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Publisher
Springer Journals
Copyright
Copyright © 2015 by Springer Science+Business Media New York
Subject
Economics / Management Science; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-015-9466-z
Publisher site
See Article on Publisher Site

Abstract

This paper focuses on a novel phenomenon—mobile banking diffusion—to illuminate unresolved questions: whether and how rivalry adoption and market structure affect the diffusion of a new technology. Using a unique, hand-collected dataset from the iTunes Store for 2008–2012, this study provides evidence that the adoptions of mobile banking apps by local rivals spur future adoptions. This effect is particularly strong in concentrated markets, where banks compete on non-price attributes. These results are robust to the application of instrumental variables that address the possibility that adoptions are merely simultaneous reactions to the same common forces.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Jul 7, 2015

References

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