Market Access and Information Technology Adoption: Historical Evidence from the Telephone in Bavaria

Does market access affect information technology by shaping its diffusion and adoption? The introduction of the telephone in Bavaria is used to demonstrate that local external affected both. External connections shortened time exchanges 3 percent on average, while 4 lines were due such inter-city communication links. However, relatively stronger effects from population size demand for services, especially larger cities, imply initially, was primarily a urban amenity also became an link when it rolled out more rural places over time.