nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2008‒04‒21
three papers chosen by
Walter Frisch
University Vienna

  1. Mental Accounting and Small Windfalls: Evidence from an Online Grocer By Katherine L. Milkman; John Leonard Beshears; Todd Rogers; Max H. Bazerman
  2. ICT Diffusion, Innovation Systems, Globalisation and Regional Economic Dynamics: Theory and Empirical Evidence By Charlie Karlsson; Gunther Maier; Michaela Trippl; Iulia Siedschlag; Robert Owen; Gavin Murphy
  3. Information Revelation in an Online Auction with Common Values By Sascha Füllbrunn

  1. By: Katherine L. Milkman (Harvard Business School, Ph.D. in Information Technology and Management); John Leonard Beshears (Harvard Business School, Ph.D. in Business Economics); Todd Rogers (Harvard Business School, Ph.D. in Organizational Behavior Psychology); Max H. Bazerman (Harvard Business School, Negotiation, Organizations & Markets Unit)
    Abstract: We study the effect of small windfalls on consumer spending decisions by examining the purchasing behavior of a sample of online grocery shoppers over the course of a year. We compare the purchases customers make when redeeming a $10-off coupon they received from their online grocer with the purchases the same customers make when shopping without a coupon. Controlling for customer fixed effects and other relevant variables, we find that grocery spending increases by $1.59 with the use of a $10-off coupon. In addition, even though the receipt of a $10-off coupon does not correspond to a meaningful increase in wealth, the extra spending associated with the redemption of such a coupon is focused on "marginal" grocery items, or grocery items that a customer does not typically buy. These findings are consistent with a simple mental accounting model but are not consistent with the standard permanent income or lifecycle theory of consumption.
    Date: 2007–09
  2. By: Charlie Karlsson (Jönköping International Business School, Jönköping University, Sweden); Gunther Maier (University of Economics and Business Administration, Vienna, Austria); Michaela Trippl (University of Economics and Business Administration, Vienna, Austria); Iulia Siedschlag (Economic and Social Research Institute (ESRI)); Robert Owen (University of Nantes, France); Gavin Murphy (Economic and Social Research Institute (ESRI))
    Abstract: The objective of this paper is to review the relevant theoretical and empirical literature to provide a conceptual and methodological background for the analysis of the consequences of ICT use and globalisation on the regional economies in the European Union. We highlight the key aspects of ICT as a general purpose technology, discuss the economic impacts of ICT diffusion from a macro as well as from a micro perspective, and examine the spatial consequences of ICT diffusion. We focus on regional innovation systems and globalisation in order to propose an organizing framework for the analysis of the impact of ICT diffusion on regional development.
    Keywords: Technology diffusion, Innovation systems, Globalisation, Regional development
    JEL: F23 O33 R11
    Date: 2008–04
  3. By: Sascha Füllbrunn (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
    Abstract: The Hard Close auction has become a familiar auction format in online markets and in a private value framework this dynamic second-price auction format has experimentally been tested in recent studies. Considering a common value framework, Bajari and Hortaçsu (2003) demonstrate that in the Hard Close auction format bidders, using a sniping strategy, do not provide information during the auction. We provide contrary results from a laboratory experiment. Bidders provide information during the bidding process, resulting in different bid functions that depend on the bidders private information rank.
    Keywords: auctions, electronic markets, experiments
    JEL: C73 C9 D44
    Date: 2008–04

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