Identifying Formal and Informal Influence in Technology Adoption with Network Externalities

Firms introducing network technologies (whose benefits depend on who installs the technology) need to understand which user characteristics confer the greatest network benefits on other potential adopters. To examine which adopter characteristics matter, I use the introduction of a video-messaging technology in an investment bank. I use data on its 2,118 employees, their adoption decisions and their 2.4 million subsequent calls. The video-messaging technology can also be used to watch TV. Exogenous shocks to the benefits of watching TV are used to identify the causal (network) externality of one individual user's adoption on others' adoption decisions. I allow this network externality to vary in size with a variety of measures of informal and formal influence. I find that adoption by either managers or workers in "boundary spanner" positions has a large impact on the adoption decisions of employees who wish to communicate with them. Adoption by ordinary workers has a negligible impact. This suggests that firms should target those who derive their informal influence from occupying key boundary-spanning positions in communication networks, in addition to those with sources of formal influence, when launching a new network technology

Social Interactions in Growing Bananas: Evidence from a Tanzanian Village

This paper analyses whether agricultural information flows give rise to social learning effects in banana cultivation in Nyakatoke, a small Tanzanian village. Based on a village census, full information is available on socio-economic characteristics and banana production of farmer kinship members, neighbours and informal insurance group members. This allows a test for social learning within these groups and the identification of different types of social effects. Controlling for exogenous group characteristics, the effect of group behaviour on individual farmer output is studied. The results show that social effects are strongly dependent on the definition of the reference group. It emerges that no social effects are found in distance based groups, exogenous social effects linked to group education exist in informal insurance groups, and only kinship related groups generate the endogenous social effects that produce positive externalities in banana output.social interactions, social learning, agricultural information networks

SOCIAL CAPITAL: SYMPATHY, SOCIO-EMOTIONAL GOODS, AND INSTITUTIONS

This paper summarizes the current state of the social capital paradigm from the viewpoint of the authors. The paper presents and defends a social capital definition based on sympathetic relationships. The paper also summarizes an expanded set of rational preferences that depend on social capital. Then, the paper describes the origin of social capital and its economic consequences, and introduces the concept of socio-emotional goods. Socio-emotional goods may attach themselves to physical goods and services. When this happens, physical goods and services are exchanged on terms different than those values established in an arm's-length market or in exchanges between strangers. It is possible to invest in social capital and this paper reviews several opportunities for social capital investment. Moving from a micro to a macro focus in the study of social capital directs the paper's focus from informal to formal institutions. Finally, the paper summarizes agreed-on social capital principles that suggest that the social capital paradigm is maturing. Key Words: earned kernels, inherited kernels, institutions and networks, social capital, socio-emotional goodsearned kernels, inherited kernels, institutions and networks, social capital, socio-emotional goods, Institutional and Behavioral Economics,

CAPRi technical workshop on Watershed Management Institutions: a summary paper

The System-wide Program for Collective Action and Property Rights (CAPRi) sponsored a workshop on Watershed Management Institutions, March 13-16, 1999 in Managua, Nicaragua. The workshop focused on methodologies for undertaking research on watersheds, particularly those issues and tools that enable a more thorough understanding of the complex interactions between the biophysical factors and socioeconomic institutions of watersheds. Both social and biophysical scientists from CGIAR and other research institutions were brought together to present research and participate in focused discussions on methodologies for addressing collective action and property rights, scale, participation, and impact assessment. The forum also provided an opportunity for participants to visit and learn from a watershed project being implemented by the International Center for Tropical Agriculture (CIAT), and to discuss one another's ongoing watershed research project experience and explore opportunities for collaboration.International Food Policy Research Institute (IFPRI), International Center for Tropical Agriculture (CIAT), Impact assessment,

Property rights, collective action and technologies for natural resource management: a conceptual framework

Environmental management, Gender, Capacity,

Platform Rules: Multi-Sided Platforms as Regulators

This paper provides a basic conceptual framework for interpreting non-price instruments used by multi-sided platforms (MSPs) by analogizing MSPs as "private regulators" who regulate access to and interactions around the platform. We present evidence on Facebook, TopCoder, Roppongi Hills and Harvard Business School to document the "regulatory" role played by MSPs. We find MSPs use nuanced combinations of legal, technological, informational and other instruments (including price-setting) to implement desired outcomes. Non-price instruments were very much at the core of MSP strategies.Platforms, regulation, network effects, distributed innovation

Social Capital

This paper surveys research on social capital. We explore the concepts that motivate the social capital literature, efforts to formally model social capital using economic theory, the econometrics of social capital, and empirical studies of the role of social capital in various socioeconomic outcomes. While our focus is primarily on the place of social capital in economics, we do consider its broader social science context. We argue that while the social capital literature has produced many insights, a number of conceptual and statistical problems exist with the current use of social capital by social scientists. We propose some ways to strengthen the social capital literature.development, growth, identification, inequality, networks, social capital, trust,

Microeconomics of Technology Adoption

There is an emerging consensus among macro-economists that differences in technology across countries accounts for the major differences in per-capita GDP and the wages of workers with similar skills across countries. Accounting for differences in technology levels across countries thus can go a long way towards understanding global inequality. One mechanism by which poorer countries can catch up with richer countries is through technological diffusion, the adoption by low-income countries of the advanced technologies produced in high-income countries. In this survey, we examine recent micro studies that focus on understanding the adoption process. If technological diffusion is a major channel by which poor countries can develop, it must be the case that technology adoption is incomplete or the inputs associated with the technologies are under-utilized in poor, or slow-growing economies. Thus, obtaining a better understanding of the constraints on adoption are useful in understanding a major component of growth.technology adoption, review

Human Resource Management Diffusion and Productivity Imbalances

In this study, we explore spatial variance in management practices and assess its potential contribution to regional imbalances in productivity. The research builds on a growing body of evidence which indicates that differences in management practices can account for a substantial share of cross-country differences in total factor productivity, and which identifies an important role for management practices in explaining differences in productivity between firms in the UK. We contribute to this literature by studying regional variation in HRM and related management practices using workplace-level (i.e. plant-level) data in Britain, taken from the Workplace Employment Relations Survey (WERS). We use these data to map spatial variance in HRM intensity in Britain. We then seek to account for that variance and, in doing so, establish whether regional variance in HRM can help to account for regional variance in productivity. This analysis is complemented by a comparative investigation of equivalent data for France, where levels of productivity and HRM are both higher and less dispersed

Social Capital

This paper surveys research on social capital. We explore the concepts that motivate the social capital literature, efforts to formally model social capital using economic theory, the econometrics of social capital, and empirical studies of the role of social capital in various socioeconomic outcomes. While our focus is primarily on the place of social capital in economics, we do consider its broader social science context. We argue that while the social capital literature has produced many insights, a number of conceptual and statistical problems exist with the current use of social capital by social scientists. We propose some ways to strengthen the social capital literature.