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Internal Disagreement and Disruptive Technologies / Joshua S. Gans.

By: Contributor(s): Material type: TextTextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w30092.Publication details: Cambridge, Mass. National Bureau of Economic Research 2022.Description: 1 online resource: illustrations (black and white)Subject(s): Other classification:
  • L21
  • O32
Online resources: Available additional physical forms:
  • Hardcopy version available to institutional subscribers
Abstract: This paper models the adoption by established firms of technologies that are internally disruptive in that different parts of an organization stand to lose or gain from adoption. When agents disagree with a decision they impose costs on the firm. The paper shows that any resistance to change this yields is necessarily accompanied by others aggrieved should change not occur. Thus, the firm cannot avoid disagreement costs regardless of whether they adopt the technology or not. In some cases, depending on their ability to impose costs, such firms may be more likely to adopt technologies as a result of internal disagreement.
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Working Paper Biblioteca Digital Colección NBER nber w30092 (Browse shelf(Opens below)) Not for loan
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May 2022.

This paper models the adoption by established firms of technologies that are internally disruptive in that different parts of an organization stand to lose or gain from adoption. When agents disagree with a decision they impose costs on the firm. The paper shows that any resistance to change this yields is necessarily accompanied by others aggrieved should change not occur. Thus, the firm cannot avoid disagreement costs regardless of whether they adopt the technology or not. In some cases, depending on their ability to impose costs, such firms may be more likely to adopt technologies as a result of internal disagreement.

Hardcopy version available to institutional subscribers

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