Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264470 
Authors: 
Year of Publication: 
2021
Citation: 
[Journal:] International Economic Review [ISSN:] 1468-2354 [Volume:] 63 [Issue:] 2 [Publisher:] Wiley Periodicals, Inc. [Place:] Hoboken, USA [Year:] 2021 [Pages:] 699-753
Publisher: 
Wiley Periodicals, Inc., Hoboken, USA
Abstract: 
A new explanation for imperfect technology adoption is proposed. In the model, agents allocate scarce attention rationally between actions and decide whether and how to adopt a technology. Introducing constraints to information processing gives rise to attentional barriers to technology adoption, which affect optimal adoption behavior. The model can explain why individuals (i) fail to adopt profitable technologies, (ii) fail to make the best use of adopted technology, (iii) treat complementary technologies as substitutes, and (iv) change their adoption decision back and forth over time. The model complements existing learning models and is consistent with empirical evidence.
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Document Type: 
Article
Document Version: 
Published Version

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