Affiliation:
1. Daniels College of Business University of Denver Denver Colorado USA
2. School of Business Macau University of Science and Technology Macau SAR China
Abstract
AbstractWe examine empirically how trading by peers on a new platform influences others' adoption decisions. We model the adoption process and find the relation to be U‐shaped, with first movers greatly discouraging their peers from adoption and late movers slightly discouraging or encouraging their peers. Further analysis shows that the U‐shape is explained by social transmission bias rather than profitability.
Funder
Macau University of Science and Technology