nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2008‒07‒05
three papers chosen by
Walter Frisch
University Vienna

  1. How to Overcome the Digital Divide? The Determinants of Internet Diffusion By Shchetinin, Oleg
  2. Efficiency and the Provision of Open Platforms By Tåg, Joacim
  3. Sharing information in web communities By Gabrielle Demange

  1. By: Shchetinin, Oleg
    Abstract: We document the existence and the persistence of the digital divide and investigate the determinants of the Internet diffusion in both developing and developed countries. Our study innovates on the following: i) we use a data set that covers more countries and years than the earlier studies ii) We use the GMM estimator which requires milder assumptions to be consistent than the traditionally used panel data estimators in technology diffusion studies. We find that i) the digital divide is likely to persist over time, ii) the Internet diffusion process is dynamic which makes static estimators inconsistent, iii) Internet adoption starts later but goes faster in developing countries, iv) inflows of the foreign investment and better human capital boost the diffusion of Internet for the developing countries only and v) GDP per capita has a negative impact on Internet diffusion in the developing countries and a positive impact in developed countries. This last finding seems surprising but it is consistent with the conditional convergence hypothesis as well as with the resource curse theory.
    Keywords: internet diffusion; digital divide; panel data; GMM
    JEL: C23 O32 O33
    Date: 2008–06
  2. By: Tåg, Joacim (Research Institute of Industrial Economics (IFN))
    Abstract: Private firms may not have efficient incentives to allow third-party producers to access their platform or develop extensions for their products. Based on a two-sided market model, I discuss two reasons for why. First, a private firm may not be able to internalize all benefits from cross-group externalities arising with third-party extensions. Second, firms may have strategic incentives to shut out third-parties because it relaxes competition.
    Keywords: Platforms; Two-sided Markets; Open versus Closed
    JEL: D40 L10
    Date: 2008–04–28
  3. By: Gabrielle Demange
    Abstract: The paper investigates information sharing communities. The environment is characterized by the anonymity of the contributors and users, as on the Web. It is argued that a community may be worth forming because it facilitates the interpretation and understanding of the posted information. The admission within a community and the stability of multiple communities are examined when individuals differ in their tastes.
    Date: 2008

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