nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2012‒12‒06
six papers chosen by
Walter Frisch
University Vienna

  1. Unbundling technology adoption and tfp at the firm level. Do intangibles matter? By M. Battisti; F. Belloc; Massimo Del Gatto
  2. Internet Interconnection and Network Neutrality By Choi, Jay; Jeon, Doh-Shin; Kim, Byung-Cheol
  3. The Co-evolution of ICT, Skills and Organization in Public Administrations: Evidence from new European country-level data. By Paolo Seri; Antonello Zanfei
  4. Analyse des Spillover-Effekts in Suchketten anhand des Google Conversion Tracking By Fuchs, Tobias; Zilling, Manfred Peter; Schüle, Hubert
  5. Digital Urban Network Connectivity: Global and Chinese Internet Patterns By Emmanouil Tranos; Karima Kourtit; Peter Nijkamp
  6. Value Creation in IT Service Platforms through Two-Sided Network Effects By Netsanet Haile; Jorn Altmann

  1. By: M. Battisti; F. Belloc; Massimo Del Gatto
    Abstract: We use a panel of European firms to investigate the relationship between intangible assets and productivity. We disentangle between tfp and technology adoption, while available studies so far have considered only a notion of productivity conflating the two effects. To this aim, we estimate production function parameters allowing, within each sector, for the existence of multiple technologies. We find that intangible assets both push the firm towards better technologies (technology adoption effects) and allow for a more efficient exploitation of a given technology (tfp effects).
    Keywords: TFP; intangible assets; firm heterogeneity; firm selection; technology adoption; mixture models
    JEL: C29 O32 D24 F12
    Date: 2012
  2. By: Choi, Jay; Jeon, Doh-Shin; Kim, Byung-Cheol
    Abstract: We analyze competition between interconnected networks when content is heterogeneous in its sensitivity to delivery quality. In a two-sided market framework, we characterize the equilibrium in a neutral network constrained to offer the same quality and assess the impact of such a constraint vis-à-vis a non-neutral network where Internet service providers (ISPs) are allowed to engage in second degree price discrimination with a menu of quality-price pairs. We find that the merit of net neutrality regulation depends crucially on content providers' business models. More generally, our analysis can be considered as a contribution to the literature on second-degree price discrimination in two-sided platform markets.
    Keywords: Net neutrality, Internet interconnection, Two-sided markets, Second-degree price discrimination, Access (Termination) charges, CPs' business models
    JEL: D4 L1 L5
    Date: 2012–11
  3. By: Paolo Seri (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: During the past two decades a big effort has been made in exploring the complementarities between information and communications technology (ICT) adoption, investment in human capital and organizational change, and how these affect economic performance. Such investigations, however, remain substantially circumscribed to private sectors, while the role of these factors in Public Sector performance has been largely disregarded. In this paper we aim at filling this gap in empirical literature by combining different data-sources and constructing a panel of comparable data about output quality, input costs, ICT investments, skills and organizational changes in Public Administrations of 15 European countries. We propose an index-based approach to the measurement of PA performance relying on the adoption of public e-services as a proxy of revealed output quality, and provide an econometric analysis of how the co-evolution of ICT, skills and organizational factors affect Government effectiveness.
    Keywords: Innovation in public services, ICTs, Organizational change, Skills.
    JEL: O14 O33 L32
    Date: 2012
  4. By: Fuchs, Tobias; Zilling, Manfred Peter; Schüle, Hubert
    Abstract: Dieses Paper widmet sich der Übertragbarkeit des Spillover-Effektes auf die Suchmaschinen-Werbung, insbesondere wird eine Wirkungsübertragung von der generischen Suche auf die Suche mit Marken-Keywords analyisiert und interpretiert. Diese Wirkungsübertragung findet annahmegemäß dadurch statt, dass der Internetnutzer bei der Suche mit generischen Suchbegriffen die platzierten Markennamen wahrnimmt und den User hinsichtlich seiner weiteren Suchaktivität dahingehend beeinflusst, dass bei zukünftigen Suchanfragen, die im gleichen thematischen Kontext zur vorhergegangenen Suche stehen, die Suche direkt mit dem Marken-Keyword durchgeführt wird. Findet somit bei der generischen Suche eine bewusste oder unbewusste positive Assoziation mit der Marke statt und beeinflusst dies die Suchaktivität des Users hinsichtlich zukünftiger Suchanfragen mit der wahrgenommenen Marke als Keyword, so ist ein Spillover-Effekt von der generischen Suche zur Brand-Suche eingetreten, der einen ökonomischen positiven Einfluss auf den Kampagnenerfolg besitzt. Die Annahme der Existenz des Spillover-Effekts konnte anhand der umfassenden Fallstudie aus der Mobilfunkbranche bestätigt werden. -- This paper focuses on the transferability of the spillover effect on search engine advertising. In particular, an effect of generic search on search with brand keywords are analyzed and interpreted. This effect is assumed to take place, if an internet user searches with generic search terms, recognizes the placed brand names and is thereby influenced in his future search activities. The effect is that future contextual identic search queries are directly conducted with the brand keyword. We assume that an association with the brand name affects the future search activities with the perceived brand as a keyword. If a conscious or unconscious positive association with the brand name takes place while performing a generic search a spillover effect from generic search to brand search occurs. This has a positive economic impact on the campaign's success. The assumption of the existence of the spillover effect was confirmed by a detailed case study from the mobile industry.
    Keywords: Suchmaschinen-Werbung,Paid Clicks,SEA,Cost-Per-Click,Click-Through-Rate,Conversion Rate,Spillover,Online Kampagne,Search Engine Advertising,Paid clicks,Cost-per-click,Click-through-rate,Conversion rate,Spillover,Online campaign
    Date: 2012
  5. By: Emmanouil Tranos (VU University Amsterdam); Karima Kourtit (VU University Amsterdam); Peter Nijkamp (VU University Amsterdam)
    Abstract: The majority of cities in our world is not only connected through conventional physical infrastructure, but increasingly through modern digital infrastructure. This paper aims to test whether digital connectivity leads to other linkage patterns among world cities than traditional infrastructure. Using a generalized spatial interaction model, this paper shows that geography (and distance) still matters for an extensive set of world cities analysed in the present study. With a view to the rapidly rising urbanization in many regions of our world, the attention is next focused on the emerging large cities in China in order to test the relevance of distance frictions - next to a broad set of other important explanatory variables - for digital connectivity in this country. Various interesting results are found regarding digital connectivity within the Chinese urban system, while also here geography appears to play an important role.
    Keywords: Digital Networks; Internet; Connectivity; World Cities; Death of Distance; Centrality; Smallâ€World Networks; Clustering; Gravity Model
    JEL: O18 H54 P25
    Date: 2012–11–16
  6. By: Netsanet Haile (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University); Jorn Altmann (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University)
    Abstract: IT service businesses can achieve economies of scale and scope faster than in traditional product businesses. In particular, as IT service platforms will become the founding infrastructure of our economies, the analysis and understanding of the value that a service platform can generate is of great importance. IT service platforms provide all involved market participants with different values. For this paper, we consider application service users, service developers and service platform providers as market participants and analyze the interrelationship between the value creations of these market participants. The basis for the description of the values and their interrelationship is the identification of parameters. Based on these parameters, a simulation model has been developed. It helps inferring the relative impact of these parameters on the evolution of the IT service platform stakeholder values. The results imply that there is a two-sided network effect. All stakeholders of a service platform mainly benefit from a growing installed base of application users. The benefit of a large service variety, however, mainly benefits the service platform provider. Therefore, we can state that a large fraction of the value from two-sided network effects goes to the platform provider.
    Keywords: IT Service Platform, Value Creation, System Dynamics, Two-Sided Network Effect, Business Modeling, IT Business, SaaS, Cloud Computing.
    JEL: C15 D02 D11 D46 D85 L14 L86 M15 M21 O31 O33
    Date: 2012–11

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