TY - JOUR AU - Basker, Emek TI - Raising the Barcode Scanner: Technology and Productivity in the Retail Sector JF - National Bureau of Economic Research Working Paper Series VL - No. 17825 PY - 2012 Y2 - February 2012 DO - 10.3386/w17825 UR - http://www.nber.org/papers/w17825 L1 - http://www.nber.org/papers/w17825.pdf N1 - Author contact info: Emek Basker US Census Bureau Center for Economic Studies 4600 Silver Hill Road Washington, DC 20233-9100 E-Mail: emek@emekbasker.org M1 - published as Emek Basker. "Raising the Barcode Scanner: Technology and Productivity in the Retail Sector," in Timothy Simcoe, Ajay K. Agrawal, and Stuart Graham, organizers, "Standards, Patents and Innovations" International Journal of Industrial Organization, Volume 36 (2014) M3 - presented at "Patents, Standards and Innovation Conference", January 20-21, 2012 AB - Barcodes and barcode scanners transformed the grocery industry in the 1970s. I use store-level data from the 1972, 1977, and 1982 Census of Retail Trade, matched to data on store scanner installations, to estimate scanners' effect on labor productivity. I find that early scanners increased a store's labor productivity, on average, by approximately 4.5 percent in the first few years. The effect was larger in stores carrying more packaged products, consistent with the presence of network externalities. Short-run gains were small relative to fixed costs, suggesting that the impediment to widespread adoption of the new technology was profitability, not coordination problems. ER -