nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2009‒02‒07
three papers chosen by
Walter Frisch
University Vienna

  1. Internet network externalities By Cooper, Russel; Madden, Gary G
  2. Estimating components of ICT expenditure: a model-based approach with applicability to short time-series By Cooper, Russel; Madden, Gary G
  3. (R)evolution of the E-grocery Industry: Strategic Implications By Mário Pedro Ferreira

  1. By: Cooper, Russel; Madden, Gary G
    Abstract: Abstract: A driving force behind the emergence of the ‘new’ or information economy is the growth of the internet network capacity. A fundamental problem in mapping this dynamic is the lack of an acceptable theoretical framework through which to direct empirical investigations. Most of the models in the literature on network externalities have been developed in a static framework, with the externalities viewed as instantaneous or self-fulfilling. The model specified here builds on the received theory from several sources to extend these features and develops a dynamic model that is both capable of econometric estimation and which provides as an output a direct measure of the network effect. Accordingly, the main goal of this paper is to find the magnitude of the external effect on internet network growth. In addition, this paper illustrates the ability of the panel data to generate estimates of structural parameters capable of explaining internet host growth.
    Keywords: Information; network externalities; internet; growth
    JEL: L96
    Date: 2008
  2. By: Cooper, Russel; Madden, Gary G
    Abstract: This paper develops a microeconomic model-based approach to forecast national information and communications technology expenditure that is helpful when only very short time-series are available. The model specification incorporates parameters for network effects and national e-readiness. Finally, the model allows for observed non-homotheticity and ‘noise’ found in sample data, with the latter attributed to country-specific influences.
    Keywords: ICT forecasts; short time-series; microeconomic modeling
    JEL: C51 L96 C53
    Date: 2008
  3. By: Mário Pedro Ferreira (Faculdade de Economia e Gestão, Universidade Católica Portuguesa (Porto))
    Abstract: The use of the Internet in grocery retailing created the need for new business models, but it did not bring radical changes to consumer behaviour. Despite adopting revolutionary business models in their early days, online grocery firms did not manage to survive or reach profitability without using existing supermarket infrastructure and knowledge. Today, with most online grocers supplying small market niches, it is important to understand the reasons that made online grocers adopt a hybrid click and mortar strategy. Historical evidence from online grocery in the UK and the US suggests that firms had to adopt contingent strategies to face the difficulty of attracting consumers, sectorial entry barriers and financial targets.
    Keywords: e-grocery, contingency, mismatch, revolution and evolution
    Date: 2009–01

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