nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2009‒04‒13
two papers chosen by
Walter Frisch
University Vienna

  1. Face Value: Information and Signaling in an Illegal Market By Trevon Logan; Manisha Shah
  2. Information integration – an essential pillar in e-government development By Hurbean, Luminita

  1. By: Trevon Logan; Manisha Shah
    Abstract: Economists argue that rich information environments and formal enforcement of contracts are necessary to prevent market failures when information asymmetries exist. We test for the necessity of formal enforcement to overcome the problems of asymmetric information by estimating the value of information in an illegal market with a particularly rich information structure: the online market for male sex work. We assemble a rich dataset from the largest and most comprehensive online male sex worker website to estimate the effect of information on pricing. We show how clients of male sex workers informally police the market in a way that makes signaling credible. Using our institutional knowledge, we also identify the specific signal male sex workers use to communicate quality to clients: face pictures. We find that the premium to information is large and that it is due entirely to face pictures. More importantly, the premium is in the range of premiums to information estimated for legal markets. We also show that the evidence is inconsistent with alternative explanations such as beauty premiums. The findings provide novel evidence on the ability of rich information environments to overcome the problems of asymmetric information without formal enforcement, and show that the value of information in illegal markets is similar to its value in legal markets.
    JEL: D4 D8 J4 K4 L8
    Date: 2009–04
  2. By: Hurbean, Luminita
    Abstract: The purpose of this paper is to explain and promote the need for ERP implementation in the public sector, to support the growing request for effective information systems, from the e-government viewpoint and under its influence. The paper also debates the major challenges in ERP implementation issued from research of published case studies. The challenges analysis turns out four major issues to address in order to overcome the integration obstacles and create a solid infrastructure for e-government.
    Keywords: integration; Enterprise Resource Planning (ERP); e-government; public sector; business process reengineering (BPR)
    JEL: O38 O33
    Date: 2008–05–05

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