nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2005‒11‒12
three papers chosen by
Walter Frisch
University Vienna

  1. New Technologies and Indian SMEs By Lal, Kaushalesh
  2. Modeling the Firm as an Artificial Neural Network By Jason Barr; Francesco Saraceno
  3. Simple Reputation Systems By John Kennes; Aaron Schiff

  1. By: Lal, Kaushalesh (United Nations University, Institute for New Technologies)
    Abstract: The study identifies and analyses the factors that influenced the adoption of new technologies in SMEs. Information and communication technologies (ICTs) have been used as proxy of new technologies. The findings of the study suggest that industry-specific characteristics such as skill- and export-intensiveness have bearings on the type of ICT adoption. The size of operation measured in terms of sales turnover influenced the adoption of new technologies. The results also suggest that there are marginal differences in the labour productivity and profitability of firms that adopted varying degree of ICTs. In view of the fact that that MFA provisions are no more available to garments sector firms since January 1, 2005, the government needs to embark on providing technological, physical, and communication infrastructure at a globally competitive rate so that SMEs can withstand onslaught posed by large domestic firms and MNCs.
    Keywords: small and medium enterprises, SMEs, technological change, information and communication technologies, ICT, India, competitiveness, technology policy, industrial policy
    Date: 2005
  2. By: Jason Barr; Francesco Saraceno
    Abstract: The purpose of this chapter is two-fold: (1) to make the case that a standard backward propagation artificial neural network (ANN) can be used as a general model of the information processing activities of the firm, and (2) to present a synthesis of Barr and Saraceno (BS) (2002, 2004, 2005), who offer various models of the firm as an artificial neural network.
    Keywords: neural networks, information processing, firm learning, agent-based
    JEL: C63 D21 D83 L13
    Date: 2005–10
  3. By: John Kennes (Department of Economics, University of Copenhagen); Aaron Schiff (Department of Economics, University of Auckland)
    Abstract: This paper develops a model of simple 'reputation systems' that monitor and publish information about the behavior of sellers in a market with search frictions and asymmetric information. The reputations created by these systems influence the equilibrium search patterns of buyers and thus provide for market-based 'punishment' of bad behavior. Our model allows us to determine the effects of the introduction of a reputation system on the behavior and welfare of buyers and sellers in such a market. We show that a simple reputation system that rewards honesty can enhance welfare by allowing good sellers to truthfully signal their type. However, we also show that in some cases the same reputation system is prone to strategic manipulation by sellers who always have low quality products. In this case, we show that an alternative simple reputation system that screens for type can be superior
    JEL: D44 D83 M37
    Date: 2005–11

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