nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2010‒11‒06
three papers chosen by
Walter Frisch
University Vienna

  1. ABC Analysis in an Internet Shop: A New Set of Criteria By Chodak, Grzegorz
  2. Competition and Innovation: ICT- and non-ICT-enabled Product and Process Innovations By Nepelski, Daniel
  3. Piracy, Music and Movies: A Natural Experiment By Adermon, Adrian; Liang, Che-Yuan

  1. By: Chodak, Grzegorz
    Abstract: This article presents a model of ABC analysis tailored for internet shops. The standard set of criteria is expanded to cover e-commerce specific characteristics, such as the number of product views, search engine rankings and product links via a recommendation system..The proposed new methodology is applied to real data from an internet bookstore in Poland. A comparison with the results of a standard, not internet-oriented ABC analysis shows the advantage of using the new set of criteria.
    Keywords: ABC analysis; internet shop; inventory control
    JEL: C88 C67
    Date: 2010–10–28
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:26280&r=ict
  2. By: Nepelski, Daniel
    Abstract: The reason for contradictory predictions of the models studying the impact of competi¬tion on innovation is the varying assumptions with respect to competition or innovation type. Thus, we study how the impact of competition changes with different types of innova¬tive Output. In particular, we distinguish between non-ICT - and ICT-enabled product and process innovations. To allow for such flexibility, we apply Bayesian inference techniques and use direct measures of innovative that control for the heterogeneity of innovation Output. Our analysis provides evidence that supports the hypothesis that the effect of market com¬petition on innovation is not alike for all types of innovation. We observe an inverse U-shape relationship between competition and non-ICT-enabled and a clear U-shape dependency for ICT-enabled innovations. However, the results become considerably weaker, once industry effects are taken into account. Thus, although the impact of competition on innovation varies with the type of innovation, other factors seem to have a stronger impact on the incentives to innovate.
    Keywords: Competition, innovation, Information and communication technologies
    JEL: L20 L22 O31
    Date: 2010–06–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:26239&r=ict
  3. By: Adermon, Adrian (Uppsala University); Liang, Che-Yuan (Research Institute of Industrial Economics (IFN))
    Abstract: This paper investigates the effects of illegal file sharing (piracy) on music and movie sales. The Swedish implementation of the European Union directive IPRED on April 1, 2009 suddenly increased the risk of being caught and prosecuted for file sharing. We investigate the subsequent drop in piracy as approximated by the drop in Swedish Internet traffic and the effects on music and movie sales in Sweden. We find that the reform decreased Internet traffic by 18 percent during the subsequent six months. It also increased sales of physical music by 27 percent and digital music by 48 percent. Furthermore, it had no significant effects on the sales of theater tickets or DVD movies. The results indicate that pirated music is a strong substitute for legal music whereas the substitutability is less for movies.
    Keywords: Copyright protection; Piracy; File sharing; Music; Movies; IPRED; Natural experiment
    JEL: D12 D40 K11 K42
    Date: 2010–10–28
    URL: http://d.repec.org/n?u=RePEc:hhs:iuiwop:0854&r=ict

This nep-ict issue is ©2010 by Walter Frisch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.