nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2014‒12‒13
ten papers chosen by
Walter Frisch
Universität Wien

  1. The adoption of information and communication technologies in the design sector and their impact on firm performance: Evidence from the Dutch design sector By Bashir, Sadaf; Matzat, U.; Sadowski, B. M.
  2. The Internet Economy - Regulatory Challenges and Practices By Isabell Koske; Rosamaria Bitetti; Isabelle Wanner; Ewan Sutherland
  3. The development of the DDG-capability in firms: An evaluation of its impact on firm financial performance By Elisabetta Raguseo; Claudio Vitari
  4. Electronic Health Information Exchange, Competition, and Network Effects By Sunita Desai
  5. Digital bricolage: Resources and coordination in the production of digital visual effects By Charles-Clemens Rüling; Raffi Duymedjian
  6. Innovative Solutions of the Future Internet: Needs of the Food Chain Users By Viola, Katalin; Gábor, István; Sebők, András
  7. Internet governance: Gambling on the periphery By Sutherland, Ewan
  8. The Effect of Access to Information and Communication Technology on Household Labor Income: Evidence from One Laptop Per Child in Uruguay By Marandino, Joaquin; Wunnava, Phanindra V.
  9. On the antitrust economics of the electronic books industry By Gaudin, Germain; White, Alexander
  10. Contagion Risk in the Interbank Market: A Probabilistic Approach to Cope with Incomplete Structural Information By Montagna, Mattia; Lux, Thomas

  1. By: Bashir, Sadaf; Matzat, U.; Sadowski, B. M.
    Abstract: This paper analyzes processes and effects of ICT enabled innovation in the Dutch design sector. Although the adoption of Information and Communication Technologies (ICT) is considered as vital in the design sector, little is known about whether and how ICTs affect the firm performance of small and medium-sized companies (SMEs) in the industry. In introducing a conceptual distinction between ICT supporting the information processing and communication, the paper first examines the determinants of ICT adoption. Next, we analyze the effects of ICT adoption on product and process innovation as well as on firm performance, focusing on the mediating role of the innovation processes. The analyses rest on survey data of a sample of 189 Dutch companies in the Web, Graphic, and Industrial Design Sector in the Netherlands. The results indicate that information processing role of ICT supports the exploitation and communication role facilitates the exploration in organizational learning. The exploitation enables process innovation while exploration enables product innovation. Lastly, Information processing technologies and product innovation are important determinants of superior firm performance.
    Date: 2014
  2. By: Isabell Koske; Rosamaria Bitetti; Isabelle Wanner; Ewan Sutherland
    Abstract: The Internet has become an integral part of the everyday life of households, firms and governments. Its proper functioning over the long run is therefore crucial for economic growth and people’s wellbeing more generally. The success of the Internet depends on its openness and the confidence of users. Designing policies that protect society while allowing for Internet’s great economic potential to be fulfilled, is a difficult task. This paper investigates this challenge and takes stock of existing regulations in OECD and selected non-OECD countries in specific areas related to the digital economy. It finds that despite the regulatory difficulties, the Internet is far from being a “regulation-free” space as there are various industry standards, co-regulatory agreements between industry and the government, and in some cases also state regulation. Most of them aim at protecting personal data and consumers more generally. In many cases generally applicable laws and regulations exist that address privacy, security and consumer protection issues both in the traditional and the digital economy.<P>L'économie internet - Enjeux et pratiques de la réglementation<BR>L'Internet fait partie intégrante de la vie quotidienne des ménages, des entreprises et des gouvernements. Son bon fonctionnement sur le long terme est donc crucial pour la croissance économique et le bien-être de la population en général. Le succès de l'Internet dépend de son ouverture et de la confiance des utilisateurs. Concevoir des politiques qui protègent les utilisateurs et la société, mais aussi qui permettent que les grands avantages de l'Internet soit pleinement récoltés est une tâche difficile. Cette étude discute quelques-uns des défis liés au développement d’Internet et fait le bilan de la réglementation en vigueur dans l'OCDE et certains pays non membres de l'OCDE dans des domaines spécifiques liés de l'économie numérique. Il constate que, malgré les difficultés réglementaires, l'Internet est loin d'être un espace "libre de réglementation". Il existe diverses normes de l'industrie, des accords de co-régulation entre l'industrie et le gouvernement, et dans certains cas, la réglementation de l'État. La plupart de ces règles visent à protéger les données personnelles et plus généralement les consommateurs. Dans de nombreux cas des lois et règlements d'application générale existent qui adressent les questions de confidentialité, de sécurité et de protection des consommateurs à la fois dans l’économie traditionnelle et numérique.
    Keywords: internet, competition, regulation, consumer protection, digital economy, économie numérique, protection des consommateurs, Internet, concurrence, réglementation
    JEL: D18 K2 L1 L5 L81 L82 L86
    Date: 2014–11–12
  3. By: Elisabetta Raguseo (Polito - Politecnico di Torino [Torino] - Politecnico di Torino); Claudio Vitari (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: We examine whether firms that develop the Digital Data Genesis dynamic capability show higher performance. Using detailed survey data on the capabilities developed by companies by the usage of digital data and firm financial performance of 96 firms, we find that the firms that develop the DDG dynamic capability have levels of ROA, ROS and revenue growth higher than others do. Our results provide one of the first empirical evidence on the direct link between DDG dynamic capability and firm financial performance
    Keywords: Digital Data Genesis; dynamic capabilities; Firm financial performance
    Date: 2013
  4. By: Sunita Desai (The Wharton School University of Pennsylvania, Health Care Management & Economics, 3640 Locust Walk, 19104 Philadelphia, PA)
    Abstract: As in most industries, in health care, information is a competitive asset, and we expect that health care providers may have incentive to protect their information from competitors. This study aims to understand how this incentive to protect information may be a barrier to the development of a health information network. Health information networks are designed to facilitate electronic information sharing across health care providers. The electronic exchange of health information is widely considered a promising tool to improve quality, costs, and efficiency of health care. Federal and state governments have invested over $30 billion to support the development of health information networks and electronic health information sharing. However, uptake has been slow suggesting that barriers to adoption exist. We first develop a model of firms' decisions to enter a health information network given this potential loss of competitive advantage. Guided by implications of the model, we conduct a two part empirical analysis to test for evidence that providers may be reluctant to join a health information network out of competitive concern. First, we conduct a national hospital-level analysis. Second, we construct a novel data set to conduct a physician-level analysis focused on New York State. In both analyses, we find supporting evidence that competitive pressure may be a barrier to entry by health care firms. We discuss implications for policy and network design given our findings.
    Keywords: health, technology, networks
    JEL: I18 L14 L15
    Date: 2014–10
  5. By: Charles-Clemens Rüling (MC - Management et Comportement - Grenoble École de Management (GEM)); Raffi Duymedjian (MC - Management et Comportement - Grenoble École de Management (GEM))
    Abstract: The advent of digital technologies has led to profound changes in the creative industries, including the digitization of resources and the consequential fragmentation and greater physical distance of work practices. Looking at the production of digital visual effects for film production, this paper asks how collective digital bricolage is enabled by specific resources and involves particular coordination mechanisms. Based on a large set of interviews with industry experts, we identify the important role of two dominant coordination principles: "narrative alignment", i.e. a scene's contribution to an overall storyline, and "verisimilitude", which we define as a sense of perceptual realism. Together, these two principles facilitate collective bricolage in an increasingly fragmented and specialized professional field. Conceptually, we develop the notion of 'digital bricolage', which relies on digital assets and tools, and emphasize the need to study the impact of digitization on the nature of resources and on the coordination mechanisms emerging in specific creative industries.
    Keywords: Bricolage; creative industries; digital technologies; visual effects; verisimilitude
    Date: 2014
  6. By: Viola, Katalin; Gábor, István; Sebők, András
    Abstract: Within the SmartAgriFood project 135 in depth interviews in 6 countries, and 8 focus group discussions in 5 countries were carried out for identification and evaluation of the potential applications of the Future Internet (FI) in the agri-food area. Several innovative ideas were described by the participants and there were also some demands, expectations and limitations which were universally mentioned by them. One of the main expectations is that FI should be accessible for anybody, anywhere and anytime. In addition the followings should be ensured: higher privacy; compatibility; integration of systems; longer range in communication; lower implementation costs; and user-friendly interfaces. The most important prerequisite is making aware and training of the users, as most of them do not have appropriate experience about using the Internet. For enhancing the application of the ICT solutions in the agri-food sector the above mentioned needs of the users should be considered and met by the ICT community.
    Keywords: Future Internet, innovative applications, agri-food sector, needs of users, Agribusiness, Food Consumption/Nutrition/Food Safety, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,
    Date: 2013–09
  7. By: Sutherland, Ewan
    Abstract: Use of the Internet by entrepreneurs has transformed gambling. Many have notionally located their businesses away from jurisdictions with heavy taxes and intrusive regulation, to offshore centres with very low taxes and regulations intended to prove their statistics and the avoidance of money laundering. Alderney and Gibraltar have been able to generate substantial revenues by offering such terms. Antigua and Barbuda had to engage in a WTO trade dispute with the USA, which it won, but has yet to be compensated. Larger countries responded slowly, by lightening their regulations and taxes. The flows of money have attracted criminals, some of whom bribe players for spot bets or even to fix matches. Despite the centrality of the Internet to these changes, the issue of gambling has remained peripheral to Internet governance, when it could learn and when it could contribute to finding solutions.
    Keywords: Internet,governance,gambling,gaming,law,enforcement
    Date: 2014
  8. By: Marandino, Joaquin (CPA Ferrere); Wunnava, Phanindra V. (Middlebury College)
    Abstract: This paper examines the effect of the One Laptop Per Child program in Uruguay [Plan Ceibal] on household labor income. Since 2007, the Uruguayan government has delivered one laptop to every child and every teacher in public primary schools. This program has considerably increased access to information technology within households since evidence shows that parents make use of the technology. Households in the department of Florida received laptops in 2007, while those in the department of Canelones received them in 2009. Therefore, using data from Household Surveys from the National Institute of Statistics in Uruguay, a difference-in-difference model is estimated to capture the effect of the plan of giving laptops on labor income [either total or hourly income]. The results indicate that there is a statistically significant positive effect of this plan on the labor income of those households below the median income. Such findings call for a plan that is more targeted to give laptops to low-income households, where parents possess less computer skills and the program has a greater potential.
    Keywords: technology, laptop, Uruguay, labor income, difference-in-difference, median income
    JEL: H41 H52 J31 O33
    Date: 2014–08
  9. By: Gaudin, Germain; White, Alexander
    Abstract: When Apple entered the ebook market, prices rose. A recent court decision found Apple guilty of colluding with publishers, blaming the price hike, in part, on agency agreements and prohibiting their use. Building a model to compare these with traditional wholesale agreements, we identify a single, pivotal condition that leads prices under agency to be higher than under wholesale with two-part tariffs but lower with linear pricing. Our model shows that the increase in ebook prices can be explained, instead, by heightened competition for reading devices, and it guides our understanding of when restricting agency agreements is advisable.
    Keywords: Electronic Books,Antitrust in High-Tech Industries,Vertical Contracting,Wholesale vs. Agency Agreements,Media Economics
    JEL: D21 D40 L23 L4 L42 L51 L82 L86
    Date: 2014
  10. By: Montagna, Mattia; Lux, Thomas
    Abstract: Banks have become increasingly interconnected via interbank credit and other forms of liabilities. As a consequence of the increased interconnectedness, the failure of one node in the interbank network might constitute a threat to the survival of large parts of the entire system. How important this effect of "too-big-too-fail" and "too-interconnected-too-fail" is, depends on the exact topology of the network on which the supervisory authorities have typically very incomplete knowledge. We propose a probabilistic model to combine some important known quantities (like the size of the banks) with a realistic stochastic representation of the remaining structural elements. Our approach allows us to evaluate relevant measures for the contagion after default of one unit (i.e. number of expected subsequent defaults, or their probabilities). For some quantities we are able to derive closed form solutions, others can be obtained via computational mean-field approximations.
    Keywords: contagion,interbank market,network models
    JEL: D85 G21 D83
    Date: 2014

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