nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2013‒04‒27
eleven papers chosen by
Walter Frisch
University Vienna

  1. Cloud computing adoption and determining factors in different industries: A case study of Thailand By Keesookpun, Chutipong; Mitomo, Hitoshi
  2. Refinement and Retesting of “eBankQual” Scale in Internet Banking Service Settings By Kumbhar, Vijay
  3. Information Technology and Transportation: Substitutes or Complements? By Oliver, Atara Stephanie
  4. On the evolution of monopoly pricing in Internet-assisted search markets By Aurora García-Gallego; Nikolaos Georgantzis; Ainhoa Jaramillo-Gutiérrez; Pedro Pereira; J. Carlos Pernías-Cerrillo
  5. Patterns of Innovation in SaaS Networks: Trend Analysis of Node Centralities By Kibae Kim; Wool-Rim Lee; Jorn Altmann
  6. Linking ICT related Innovation Adoption and Productivity: results from micro-aggregated data versus firm-level data. By Van Leeuwen, George; Polder, Michael
  7. Aspects and Importance of Digital Media in Pakistan By Abdur Raheem, Syed; Akber, Fahad; Hashmi, Umair
  8. A comparison analysis of smart phone competition model: Korean case and Japanese case By Ueda, Masashi; Park, Yousin; Chen, Yunju
  9. Some insights in regulation and potential profitability off passive fiber infrastructure in Europe By Verbrugge, Sofie; Van der Wee, Marlies; Fernandez-Gallardo, Maria; Dobrajs, Kristaps; Pickavet, Mario
  10. Institutional Complementarities and Property Rights-Technology Equilibria under Knowledge Intensive Technology By Erkan Gurpinar
  11. Conflict Analysis in Virtual States (CAVS):A New Experimental Method Based on the Extensive Use of Multi-Agent Simulation (MAS) and Geographical Information System (GIS) By Sakamoto, Takuto

  1. By: Keesookpun, Chutipong; Mitomo, Hitoshi
    Abstract: The cloud computing model is a modern concept of computation that provides a number of benefits for its adopters. This online computing model has been widely used in the western world and accepted to have some business and economic impacts. This paper provides some basic knowledge about cloud computing and discusses the greatest benefit which is cost reduction in fixed ICT capital and services. With such the benefit, this study attempts to find the determining factors for cloud computing adoption in various industries and proposes some policy recommendations accordingly in order to facilitate the diffusion of the innovative computing model as well as the extensive realisation of its benefit. Thailand is selected as ground for investigation. The discrete choice model of logistic regression is selected as an econometric tool to extract the relationships of different attributes and the probability of cloud computing adoption in 206 industries. The results point out significant determining factors categorised into Internet and technology; cost; and some difficulties in ICT usage. Hence, some policy implications in order to increase the possibility of adoption include an effort to improve internet capability of employees; provide some investment incentives such as tax reduction and low-cost loans for initial set-ups of cloud computing systems; and develop reliable internet network with advanced capability and low cost of use. --
    Keywords: Cloud computing,Economic benefits of the cloud,Cloud computing adoption,Binary regression,Thai industries
    JEL: C25 D22 O31 O53
    Date: 2012
  2. By: Kumbhar, Vijay
    Abstract: The eBankQual scale was developed for measurement of service quality and customers’ satisfaction in e-banking service setting. This scale was tested in earlier study and found good predictive ability. However, testing and retesting must be required to prove either this scale having strong predictive ability or not. Therefore, the present study was undertaken to retesting of eBankQual scale. In the present study, this scale was tested in internet banking service setting. This scale was tested using Cronbach’s alpha reliability test and Structural Equation Modeling (SEM) using SPSS-20 and Amos-20. Result of the reliability and validity test shows that System Availability, E-Fulfillment, Accuracy, Efficiency, Security, Responsiveness, Easy to use, Convenience, Cost Effectiveness, Problem Handling, Compensation, Contact and Perceived value are reliable dimensions of eBankQual Scale and it having good predictive ability in determination of customers’ satisfaction in Internet Banking service.
    Keywords: E-service Quality, eBankQual, Scale Reliability, Internet Banking, Customer Satisfaction
    JEL: G0 G20 G21
    Date: 2012–10
  3. By: Oliver, Atara Stephanie
    Abstract: The increased availability and prevalence of Information and Communications Technology (ICT) provides opportunities to use such products as substitutes for transportation. Common examples of this substitution are telecommuting, video conferences, and online classes. However, despite the intuitive appeal of a substitution relationship existing between ICT and transportation, prior research has indicated that the relationship between ICT and transportation is quite complex; at times ICT substitutes for travel and at other times ICT and travel complement each other. Therefore, using a Quadratic Almost Ideal Demand System (QUAIDS) model and data from the US Consumer Expenditure Survey and the Consumer Price Index, I analyzed the effect of ICT expenditures on transportation demand. The analysis indicates that ICT may serve as a substitute for air travel, but primarily serves as a complement for private transportation. Overall the data supports a complementary relationship between ICT and transportation, which indicates that an increase in technology may increase rather than decrease the negative externalities associated with transportation.
    Keywords: Transportation, Consumer Expenditures, Information Technology
    JEL: D12 O33 R22 R41
    Date: 2013–04–23
  4. By: Aurora García-Gallego (LEE & Department of Economics, Universitat Jaume I, Castellón, Spain); Nikolaos Georgantzis (GLOBE & Economics Department, University of Granada, Spain; LEE & Economics Department, Universitat Jaume I, Castellón-Spain); Ainhoa Jaramillo-Gutiérrez (EriCes & Dpt. of Applied Economics, University of Valencia, Spain); Pedro Pereira (Autoridade da Concorrência and CEFAGE-UE, U. of Evora, Portugal); J. Carlos Pernías-Cerrillo (Economics Department, Universitat Jaume I, Castellón, Spain)
    Abstract: We study the evolution of prices in markets assisted by price-comparison engines. We use laboratory data obtained under two industry sizes and two conditions concerning the sample (complete, incomplete) of prices available to informed consumers. Distributions are typically bimodal. One of the two modes, corresponding to monopoly prices, tends to increasingly attract prices over time. The second one, corresponding to interior prices, presents a decreasing trend. Monopoly pricing can be used as an insurance against more competitive (but riskier) behavior. In fact, subjects earning low profits due to interior pricing in the past are more likely to choose monopoly pricing.
    Keywords: Internet Economics, price-comparison search engines, mixed strategy equilibria, experimental economics
    JEL: D0 D2 L1 L4
    Date: 2013
  5. By: Kibae Kim (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University); Wool-Rim Lee (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: As software vendors provide their software as a service (SaaS) and allow users to access the software functions via open interfaces, the innovation style has shifted from local innovation of a software user, to collective innovation of an entire system of users and software. This new innovation trend directs the innovation research to the structural and evolutionary patterns of SaaS networks, in which a node represents a software service and a link the combined use of two software services for provisioning a new service. However, prior research concentrates only on the static properties of network structure and the position of nodes in the network, but misses the dynamics in the evolution context. In this paper, we close this gap by investigating the trend of centralities of five representative software services in a SaaS network. The data has been obtained from Our results suggest that each software service of a SaaS network follows the typical life cycle from growth to decline. In addition to this, the innovation trend shifts from image services to social networking services, involving a transition of network structure. Our results also show the necessity of innovation studies that investigate the changing patterns of evolving innovation networks.
    Keywords: Open Innovation, Centralities, Composite Services, Software-as-a-Service.
    JEL: D85 L86 O33
    Date: 2013–01
  6. By: Van Leeuwen, George; Polder, Michael
    Abstract: E-business systems are increasingly considered as important examples of ICT related innovations embodied in software applications, the adoption of which is essential for capturing the potential fruits of several ICT externalities. For analysing the importance of this type of embodied technological progress several routes are open. One route is to look at the data that can be used. In this paper we apply the same modelling strategy to two different types of data: 1) cross-country-industry micro-aggregated data obtained after applying Distributed Micro data Analysis (DMD) and 2) firm-level data, in this case for the Netherlands. Today, the econometric analysis based on firm-level data is often more advanced and more complicated from an econometric point of view than the analysis on aggregated data. We show that DMD can be extended to enable the estimation of more complicated models that feature recent directions in micro-econometric analysis on firm-level data. Our application concerns the innovative use of E-business systems by firms. Using a rich set of cross-country-industry data constructed and tailored by DMD for this purpose, we analyse the adoption of three E-business systems (Eterprise Resourc Planning, Customer Relationship Management, Supply Chain Management). We investigate the complementarities in joint adoption and the productivity effects of adopting systems simultaneously or in isolation. The same exercise is repeated on firm-level data for the Netherlands. Our example illustrates that international benchmarking with more elaborate models on cross-country-industry panel data is feasible after using DMD to tailor the underlying firm-level data for specific research questions. This is an important result in the light of the restrictions on pooling cross-country micro data due to confidentiality rules. We find that the results are more diverging for the estimation of complementarities at the adoption stage than for the productivity effects of (joint) adoption. This result implies that measurement error and unobservable heterogeneity plays a greater role when explaining adoption pattern at the firm-level than at the aggregate level.
    Keywords: DMD, ICT, innovation, innovation complementarities, productivity
    JEL: D2 D24 D8 L2 L21
    Date: 2013–03–31
  7. By: Abdur Raheem, Syed; Akber, Fahad; Hashmi, Umair
    Abstract: Digital Media has gained importance over the years, around the world. It has created impact in Pakistan too. This paper draws comparison in usage and impact of Digital Media in developed worlds with Pakistan and identifies the flaws, the potential and scope of digital media in Pakistan. Pakistan as the world’s 7th largest country has tremendous potential for digital media. However lack of knowledge, interest and resources has held Pakistan in attaining advancement in development of digital media. Though the technology has been there since 1990s yet, fewer people properly understand aspects and importance of digital media. In fact there are hardly any research papers on digital media by Pakistani authors. In this research paper we have limited our research to the limited application of digital media in Pakistan but we have discussed in detail the upcoming trends and marketing tactics adopted by marketers.
    Keywords: Digital Media, Pakistan, Importance of Digital Media in Pakistan, Advertising, Digital Advertising
    JEL: M30 M31 M37 M39
    Date: 2013–03
  8. By: Ueda, Masashi; Park, Yousin; Chen, Yunju
    Abstract: This paper investigated the driving force of diffusion in smart phone market by analysing usage of them and making their component model. Main findings are following four: 1) In Korea and Japan their average smart phones' traffic per user has been the world's highest level. But its diffusion pattern is very different. 2) The Korean government and private companies strongly support diffusion of smart phones but not so much in Japan. 3) Korean and Japanese Mobile phone companies and/or manufacturers try to build their application stores. They collect funds for developing tools and application developers. 4) Importance of customises or localise for drastic diffusion. --
    Keywords: Smartphone,diffusion pattern,path dependency,Component Model.
    JEL: L22 L21
    Date: 2012
  9. By: Verbrugge, Sofie; Van der Wee, Marlies; Fernandez-Gallardo, Maria; Dobrajs, Kristaps; Pickavet, Mario
    Abstract: In 2010, the European Commission has formulated some clear objectives to come to one single European telecommunications market by 2020 in its Digital Agenda. These objectives require large investments in new infrastructure. Optical access networks can cope with the high bandwidth required by future applications, but their deployment to the end user involves high road and construction works and costs, which seem only affordable in densely populated areas. Therefore, other investment paths and possible regulatory interventions should be explored. This paper describes a cost-benefit model, developed within the European research project OASE, for the deployment of a dark fiber infrastructure. The model is applied to specific scenarios, which are constituted of the area type (dense urban/ urban/rural), demand uptake (conservative/ likely/ aggressive) and revenue scheme. The quantitative analysis performed indicates that the business case is in most cases not economically viable. Therefore, as a second step, the paper investigates possibilities and opportunities to improve the business case of the PIP, for instance by prolonging the planning horizon, ensuring revenue from the start of the project by performing demand aggregation or examining where public funds might help. --
    Keywords: Next-Generation Access Networks,Passive Infrastructure,European regulatory policy,cost-benefit analysis
    Date: 2012
  10. By: Erkan Gurpinar
    Abstract: The unprecedented development of intellectual property rights (both in scale and scope) has been one of the most important factors in the transformation of the world economy over the last three decades. We argue that, at least in part, economic importance of knowledge has brought an overreaching enclosure movement on it. IPRs regime protecting the knowledge base of firms deprives knowledge workers of owning the intellectual assets developed in the production process. This development, in turn, (a) has damaging consequences on the knowledge workers’ skills; thereby (b) the rise of a virtuous cycle between nonexclusive property rights and workers’ skills is prevented.
    Keywords: Intellectual property rights, knowledge intensive technology, institutional complementarities
    JEL: K11 L23 O34
    Date: 2013–04
  11. By: Sakamoto, Takuto
    Abstract: Conflict Analysis in Virtual States (CAVS) offers a fresh approach to analyzing civil conflicts, which also has significant potential for policy application. This approach, made possible by the use of two computer-based methods comprising multi-agent simulation (MAS) and a geographical information system (GIS), basically consists of observing and analyzing simulated dynamics of civil conflicts. Characteristically, these simulations are run in ‘realistic virtual statesm,’ which are constructed virtually but reflect some of the defining characteristics of corresponding sovereign states that exist in the real world. In short, controlled pseudo-experiments concerning civil conflicts are conducted in a virtual environment that sufficiently approximates the empirical reality. This working paper introduces CAVS and reports on its latest developments. First, the paper gives an overview of CAVS and its two major components: a MAS model of virtual states and GIS datasets on actual states (e.g., demographic distribution, distribution of ethnic groups, etc.). This overview is followed by some illustrative examples of simulation runs conducted in several virtual states that approximate existing states in Northeast Africa (Eritrea, Ethiopia, Kenya, Somalia, and the Sudan). The paper then details the substantial improvement and extension that the CAVS platform is now undergoing. This ongoing development includes: restructuring and unification of the GIS datasets; introduction of a much-strengthened and more flexible interface between the GIS data and the MAS model; and a substantial extension of the MAS model itself, particularly in its coverage of international and transnational factors. Lastly, the paper describes several research projects currently underway, such as investigations into the effects on civil conflicts of a variety of external influences and interventions. Firmly based on the extended CAVS platform, these projects have clear policy implications.
    Keywords: civil conflicts , Africa , multi-agent (agent-based) simulation (MAS) , geographical information system (GIS) , policy experiments
    Date: 2013–03–18

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