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Measuring the social gains from recent technological advances is difficult because there are no output indexes from some important adopters. Measurement methods that infer the willingness-to-pay of theadopting industries from the derived demand curve for a new technologyovercome this difficulty. The derived demand for high-speed computersfor use in banks, finance, and insurance is shown to imply a very largesocial gain to computerization that is not captured by computer manufacturers. Copyright 1986 by American Economic Association.
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