nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2014‒10‒22
six papers chosen by
Walter Frisch
Universität Wien

  1. Internet piracy and book sales: a field experiment By Wojciech Hardy; Michał Krawczyk; Joanna Tyrowicz
  2. E-Skills, Brains and Performance of the Firms: ICT and Ability of Firms to Conduct Successful Projects in Luxembourg By Anissa Chaibi; Adel Ben Youssef; Leila Peltier- Ben Aoun
  3. Wikipedia: the value of open content production By Aleksi Aaltonen; Stephan Seiler
  4. Are Information Disclosure Mandates Effective? Evidence from the Credit Card Market By Alan Elizondo; Enrique Seira
  5. Consumer financial protection regulations: how do they measure up? By Ritter, Dubravka
  6. Identity theft as a teachable moment By Cheney, Julia S.; Hunt, Robert M.; Mikhed, Vyacheslav; Ritter, Dubravka; Vogan, Michael

  1. By: Wojciech Hardy (Faculty of Economic Sciences, University of Warsaw); Michał Krawczyk (Faculty of Economic Sciences, University of Warsaw); Joanna Tyrowicz (Faculty of Economic Sciences, University of Warsaw)
    Abstract: We report the results of an experimental study analyzing the effects of Internet piracy on book sales. We conducted a year-long controlled large-scale field experiment with pre-treatment pair matching. Half of the book titles received experimental treatment, in which a specialized agency would immediately remove any unauthorized copy appearing on the Internet. For the other half we merely registered such occurrences, but no countermeasures were taken. For all the titles we obtained print and e-book sales statistics from the publishers. We find that removal of unauthorized copies was an effective method of curbing piracy, but this had no bearing on legal sales.
    Keywords: digital piracy, e-books, field experiment
    JEL: C93 D12 K42 L82 O34
    Date: 2014
  2. By: Anissa Chaibi; Adel Ben Youssef; Leila Peltier- Ben Aoun
    Abstract: This paper provides original empirical evidence on the causal links between e-skills, usage of Information and Communication Technologies (ICT) and firm’s performance using a sample of Luxembourgian manufacturing and services firms. Firm performance is measured in terms of innovation (success of new projects settled). Our main findings are: (i) there’s no relationship between the absorptive technology capacity of the firm (measured by ICT staff and Training) and the probability of the implementation of successful ICT projects, (ii) there is a positive effect of e-applications usage (ICT usage) on the probability of the implementation of successful new projects, and (iii) there is an asymmetric effect of usage of e-commerce and eadministration confirming findings of the recent literature.
    Keywords: Innovation; Usage of ICT; Depth of ICT adoption; Ordered models; Innovative projects.
    JEL: L21 O31 O33
    Date: 2014–09–25
  3. By: Aleksi Aaltonen; Stephan Seiler
    Abstract: Without the 'spillover effects' of open content production, the growth in Wikipedia editing activity between 2002 and 2010 would have been halved. That is the central finding of research by Aleksi Aaltonen and Stephan Seiler, which analyses editing data by Wikipedia users to show how content creation by individuals encourages others to contribute to the collective process of knowledge production. Many organisations are developing open source platforms to create, store and share knowledge. This study shows how a larger mass of potential contributors to an online platform will generate bigger spillovers. Providing incentives for early users to contribute content will trigger further contributions.
    Keywords: Wikipedia, open source, user-generated content, knowledge spillover, cumulative knowledge
    JEL: D24 L23 L86 M11 O31
    Date: 2014–10
  4. By: Alan Elizondo; Enrique Seira
    Abstract: Consumer protection in financial markets in the form of information disclosure is high on governments agendas, despite the fact that the empirical evidence on its effectiveness is scarce. To measure the impact of Truth-in-Lending-Act-type disclosures on default and indebtedness, as well as of debiasing warning messages and social comparison information, we implement a randomized control trial in the credit card market for a large population of indebted cardholders. We find that providing salient interest rate disclosures has no effect, while social comparisons and debiasing messages have only a odest effect. Other types of disclosures discussed in the paper could have larger effects.
    Keywords: Credit cards, information disclosure, truth in lending, Mexico.
    JEL: D12 D14 D83 G02 G21 G28
    Date: 2014–08
  5. By: Ritter, Dubravka (Federal Reserve Bank of Philadelphia)
    Abstract: The Payment Cards Center's September 2012 policy conference advanced the discussion of targeted design and outcome measurement as central features of public policy in the area of consumer financial protections. Speakers considered regulations addressing the disclosure of credit terms; standards for assessing the unfairness, deceptiveness, and abusiveness of lending acts or practices; the management of revolving credit accounts; and the challenges of analyzing consumer complaints in the context of consumer financial protections. The concluding panel discussed unanswered questions and research priorities going forward. Discussion focused on the data and methodology required and available for assessing the contribution of consumer financial protections to the advancement of, and the challenges inherent in, measuring social welfare. Panelists also considered the intended and unintended effects of these regulations on prices, quantities, competition, innovation, and the overall business risk market participants face.
    Keywords: Measurement; Consumer financial protection; Disclosure; UDAP; Unfair Deceptive Acts and Practices; UDAAP; Unfair; Deceptive; or Abusive Acts or Practices; Account management; Mortgages; Credit Cards; Consumer complaints
    JEL: G28 K23
    Date: 2014–09–13
  6. By: Cheney, Julia S. (Federal Reserve Bank of Philadelphia); Hunt, Robert M. (Federal Reserve Bank of Philadelphia); Mikhed, Vyacheslav (Federal Reserve Bank of Philadelphia); Ritter, Dubravka (Federal Reserve Bank of Philadelphia); Vogan, Michael (Federal Reserve Bank of Philadelphia)
    Abstract: This paper examines how instances of identity theft that are sufficiently severe to induce consumers to place an extended fraud alert in their credit reports affect their risk scores, delinquencies, and other credit bureau variables on impact and thereafter. We show that for many consumers these effects are relatively small and transitory. However, for a significant number of consumers, especially those with lower risk scores prior to the event, there are more persistent and generally positive effects on credit bureau variables, including risk scores. We argue that these positive changes for subprime consumers are consistent with the effect of increased salience of credit file information to the consumer at the time of the identity theft.
    Keywords: Inattention; Identity Theft; Fraud Alert; Consumer Protection; Credit Report; Fair And Accurate Credit Transactions Act (FACTA); Propensity Score Matching
    JEL: D14 D18 G02
    Date: 2014–09–01

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