dinam a model of innovative product adoption in the presence direct and indirect network externalities august 1 2004 michael song university washington business school mackenzie hall box 353200 seattle wa 98195 3200 e mail msong u edu stuart read 4005 41 st avenue ne 98105 sread abstract economics literature models by measuring installed base availability supporting products price diffusion innovations uses consumer perceptions innovation attributes to two views are integrated this paper resulting tested using data from dvd player market predicts with 93 accuracy setting 2 introduction have enabled radical enhancements delivery consumption energy information entertainment durable goods over past century while impact externality has already been significant scholars field predict that growth area will continue outpace us economy economides 1998 accordingly there
