nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2010‒09‒11
five papers chosen by
Walter Frisch
University Vienna

  1. The Role of Cybermediaries in the Hotel Market By Yacouel, Nira; Fleischer, Aliza
  2. Technology that Produces Sustainable Competitiveness : A Comparison of Innovative Technologies and Accumulated-knowledge Technologies By Nobeoka, Kentaro
  3. Communication of companies with their surroundings - the manipulation of information and information asymmetry By Bojańczyk, Mirosław
  4. Public information and IPO underpricing By Einar, Bakke; Leite, Tore E.; Thorburn, Karin S.
  5. The Importance of Broadband Provision to Knowledge Intensive Firm Location By Elizabeth A. Mack; Luc Anselin; Tony H. Grubesic

  1. By: Yacouel, Nira; Fleischer, Aliza
    Abstract: The advent of the Internet changed the way buyers and sellers interact. Although access to information seems unlimited, non-expert agents find it difficult to identify the information they can confidently use. A third-party expert or a cybermediary (an intermediary in the cyberspace) can help sort out the information for the contracting partners. In this paper, we study the case of the online hotel market and the role of the cyber travel agent (CTA). We claim that CTAs encourage hoteliers to exert effort in service quality and provide empirical evidence that these hotels are compensated with a price premium.
    Keywords: Cybermediaries, Internet, travel agents, reputation, hotel market, Agricultural Finance, Institutional and Behavioral Economics,
    Date: 2010
  2. By: Nobeoka, Kentaro
    Abstract: Approaches that serve as a source of technology that produces sustainable competitiveness can be classified into two types: the acquisition of patents based on innovative technology (innovative technologies), and accumulation of knowledge over many years in specific technical fields (accumulated-knowledge technologies). This paper compares the influence these two sources of technological advantage have on corporate competitiveness. As a conclusion, accumulated-knowledge technologies are demonstrated to be more important for sustainable competitiveness than innovative technologies. This tendency is especially notable when technological change is rapid.
    Keywords: Sustainable competitiveness, Innovative technologies, Accumulated-knowledge technologies, Organizational capabilities
    Date: 2010–08
  3. By: Bojańczyk, Mirosław
    Abstract: Creative accounting, the bankruptcy of many companies, and ongoing litigations made rapid rebuilding of investor relations imperative. Growing importance of institutional investors, who have high information needs, also impacted this process. Thus, the needs for communication with investors and reducing information asymmetry problems have become key issues in the capital markets. The traditional model of reporting was based largely on information relating to past events (financial accounting). Commonly, there was inadequate consideration of non-financial information impacting the development of goodwill in the future. Some information was published with considerable delay. This facilitated the use of confidential information by those who had previous access to it.
    Keywords: information assymetry; investment advisers; credit rating; aggressive accounting; confidential information; international accounting standards; financial crises;
    JEL: G14 G15 E44 D82 G30
    Date: 2010–07–30
  4. By: Einar, Bakke (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration); Leite, Tore E. (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration); Thorburn, Karin S. (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)
    Abstract: We analyze the effect of public information on rational investors' incentives to reveal private information during the bookbuilding process and their demand for allocations in the IPO. Our model generates several new predictions. First, investors require more underpricing to truthfully reveal positive private information in bear markets than in bull markets (the incentive effect). Second, the fraction of positive private signals and of underpriced IPOs is increasing in market returns (the demand effect). Combined, these two effects can explain why IPO underpricing is positively related to pre-issue market returns, consistent with extant evidence. Using a sample of 5,000 U.S. IPOs from 1981-2008, we show that the empirical implications of the model are borne out in the data.
    Keywords: Public information; partial adjustment; underpricing; IPOs; bookbuilding
    JEL: G10 G32
    Date: 2010–08–24
  5. By: Elizabeth A. Mack (GeoDa Center for Geospatial Analysis and Computation; Arizona State University); Luc Anselin (GeoDa Center for Geospatial Analysis and Computation; Arizona State University); Tony H. Grubesic
    Abstract: Despite the volume of literature afforded knowledge work and innovations in information and communications technologies (ICTs), few studies have examined the importance of ICTs to firms in knowledge industries. This study will develop spatial econometric models to examine the relative importance of the level of broadband provision to knowledge intensive firms in select U.S.  metropolitan statistical areas (MSAs). Results demonstrate the need for both a spatial econometric and a metropolitan area specific evaluation of this relationship. They also suggest potential spillover effects to knowledge intensive firm location, which may explain why some regional economies are relatively more successful at stimulating firm growth in this increasingly important sector of the U.S economy.
    Date: 2010

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