The Adoption of the Compact Disk Player: An Event History Analysis for the Netherlands

The compact disk (CD) player was one of the major audio innovations of the 1980s in the Netherlands. For studies of the temporal and social diffusion pattern of the CD player and the compact disks, both cultural and economic theories about innovations and music consumption are available. In this paper, these theories are combined in six working hypotheses concerning earlier adoption. The empirical analysis includes both time-invariant and time-varying variables and consumer characteristics. Event history analysis, the technique used in this article, enables one to incorporate these kinds of variables simultaneously in a dynamic model. Compared with the diffusion models usually employed by means of longitudinal analysis, event history analysis is a significant improvement in studying the development of the CD market in the Netherlands.