nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2008‒01‒05
six papers chosen by
Walter Frisch
University Vienna

  1. Detecting discrimination in the hiring process: Evidence from an Internet-based search channel By Eriksson, Stefan; Lagerström, Jonas
  2. Long Tail or Steep Tail? A Field Investigation into How Online Popularity Information Affects the Distribution of Customer Choices By Tucker, Catherine; Zhang, Juanjuan
  3. New Economy: Using National Accounting Architecture to Estimate the Size of the High-technology Economy By Beckstead, Desmond; Burrows, Sëan; Gellatly, Guy
  4. Nouvelle économie: utilisation de l'architecture de la comptabilité nationale pour estimer l'importance de l'économie de haute technologie By Beckstead, Desmond; Burrows, Sëan; Gellatly, Guy
  5. It Risk Management: From IT Necessity to Strategic Business Value By Westerman, George
  6. The Elusive Antitrust Standard on Bundling in Europe and in the United States at the Aftermath of the Microsoft Cases By Nicholas Economides; Ioannis Lianos

  1. By: Eriksson, Stefan (Department of Economics); Lagerström, Jonas (Institute for Labour Market Policy Evaluation (IFAU))
    Abstract: This paper uses data from an Internet-based CV database to investigate how factors which may be used as a basis for discrimination, such as the searchers’ ethnicity, gender, age and employment status, affect the number of contacts they receive from firms. Since we have access to essentially the same information as the firms, we can handle the problems associated with nobserved heterogeneity better than most existing studies of discrimination. We find that, even when we control for other differences, searchers who have non-Nordic names, are old or unemployed receive significantly fewer contacts. Moreover, we find that this matters for the hiring outcome: Searchers who receive more contacts have a higher probability of actually getting hired.
    Keywords: Job Search; Unobserved Heterogeneity; Discrimination
    JEL: J64 J71
    Date: 2007–12–12
  2. By: Tucker, Catherine; Zhang, Juanjuan
    Abstract: The internet has made it easier for customers to find and buy a wide variety of products. This may lead to a "long tail" effect as more customers buy low-volume products. However, the internet has also made it easier for customers to find out which products are most popular. This could lead to a "steep tail" effect as customers flock towards the most popular products. Using data from a field experiment with a website that lists wedding service vendors, we find empirical evidence that a steep tail exists. The most popular vendors become more popular when customers can easily observe previous customers' click-through behavior. Then, we ask whether this steep tail effect "complements" the long tail, by attracting customers who would otherwise have chosen nothing, or "competes with" the long tail, by shifting customers from less popular vendors to popular ones. We find evidence of a complementary effect, where the steep tail indicates new interest in the most popular vendors from outside, with negligible cannibalization of interest for less popular vendors. The findings suggest that popularity information can serve as a powerful marketing tool that facilitates product category growth. They also explain the prevalence of firm practices to highlight bestsellers.
    Keywords: Long Tail, Steep Tail, Customer Learning, Decisions Under Uncertainty, Internet Marketing, Category Management,
    Date: 2007–12–07
  3. By: Beckstead, Desmond; Burrows, Sëan; Gellatly, Guy
    Abstract: This paper illustrates how the statistical architecture of Canada's System of National Accounts can be utilized to study the size and composition of a specific economic sector. For illustrative purposes, the analysis focuses on the information and communications technology (ICT) sector, and hence, on the set of technology-producing industries and technology outputs most commonly associated with what is often termed the high-technology economy. Using supply and use tables from the input-output accounts, we develop integrated ICT industry and commodity classifications that link domestic technology producers to their principal commodity outputs. We then use these classifications to generate a series of descriptive statistics that examine the size of Canada's high-technology economy along with its underlying composition. In our view, these integrated ICT classifications can be used to develop a richer profile of the high-technology economy than one obtains from examining its industry or commodity dimensions in isolation.
    Keywords: Economic accounts, Information and communications technology, Input-output accounts, Information and communications technology sector
    Date: 2007–12–21
  4. By: Beckstead, Desmond; Burrows, Sëan; Gellatly, Guy
    Abstract: Le présent document montre comment l'architecture statistique du Système de comptabilité nationale du Canada peut être utilisée pour étudier l'importance et la composition d'un secteur économique particulier. À titre d'illustration, l'analyse est axée sur le secteur des technologies de l'information et des communications (TIC) et, par conséquent, sur l'ensemble des industries productrices de technologies et des produits de technologie qui sont les plus couramment liés à ce que l'on appelle souvent l'économie de haute technologie. À partir des tableaux des ressources et des emplois des comptes des entrées-sorties, nous élaborons des classifications intégrées des industries et des produits des TIC, qui permettent d'établir un lien entre les producteurs de technologies au pays et leurs principaux produits. Nous utilisons ensuite ces classifications pour produire une série de statistiques descriptives qui permettent d'examiner l'importance de l'économie de haute technologie au Canada ainsi que ses éléments sous-jacents. À notre avis, ces classifications intégrées peuvent servir à dresser un profil plus détaillé de l'économie de haute technologie que celui découlant de l'examen isolé des caractéristiques des industries ou de celles des produits.
    Keywords: Comptes économiques, Technologie de l'information et des communications, Comptes d'entrées-sorties, Secteur des technologies de l'information et des communications
    Date: 2007–12–21
  5. By: Westerman, George
    Abstract: With information technology becoming an increasingly important part of every enterprise, managing IT risk has become critically important for CIOs and their business counterparts. However, the complexity of IT makes it very difficult to understand and make good decisions about IT risks. CISR research has identified four business risks - Availability, Access, Accuracy, and Agility - that are most affected by IT. Since nearly every major IT decision involves conscious or unconscious tradeoffs among the four IT risks, IT and business executives must understand and prioritize their enterprise's position on each. Three core disciplines - IT foundation, risk governance process, and risk aware culture - constitute an effective risk management capability. Enterprises that build the three core disciplines manage risk more effectively and their business executives have better understanding of their IT risk profile and risk tradeoffs. When done well, IT risk management matures from a set of difficult compliance and threat-reduction activities to become a true source of agility and business value.
    Keywords: IT related risk, IT governance, IT architecture, business agility,
    Date: 2007–12–07
  6. By: Nicholas Economides (Stern School of Business, New York University); Ioannis Lianos (University College London, Faculty of Laws)
    Abstract: We analyze and contrast the US and EU antitrust standards on mixed bundling and tying. We apply our analysis to the US and EU cases against Microsoft on the issue of tying new products (Internet Explorer in the US, and Windows Media Player in the EU) with Windows as well as to cases brought in Europe and in the United States on bundling discounts. We conclude that there are differences between the EC and US antitrust law on the choice of the relevant analogy for bundled rebates (predatory price standard or foreclosure standard) and the implementation of the distinct product and coercion test for tying practices. The second important difference between the two jurisdictions concerns the interpretation of the requirement of anticompetitive foreclosure. It seems to us that in Europe, consumer detriment is found easily and it is not always a requirement for the application of Article 82, or at least that the standard of proof of a consumer detriment for tying cases is lower than in the US.
    Keywords: tying, bundling, foreclosure, requirement contracts, monopolization, Microsoft, predatory pricing
    JEL: K12 L12 L13 L41 L42 L63
    Date: 2007–12

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