Diffusion of a durable good innovation: The case of high bypass turbojet engines

Jackson and Kaserman (1991) model diffusion of an innovation an investment decision where the time of adoption is motivated by cost-minimization. This paper tests this model, using the adoption by American major airlines of jet aircraft embodying high bypass turbojet engine technology.The results support the Jackson-Kaserman model. The effect of aircraft age has the appropriate and significant sign. Likewise, average stage length measuring relative variable cost performance of the old and new technology is appropriately signed.