nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2015‒05‒30
three papers chosen by
Walter Frisch
Universität Wien

  1. Net neutrality and inflation of traffic By Peitz, M.; Schütt, F.
  2. Does ICT Generate Economic Growth? A Meta-Regression Analysis By T.D. Stanley; Chris Doucouliagos; Piers Steel
  3. Machines in a Cloud – or a Cloud in Machines? Emerging New Trends of the Digital Platforms in Industry and Society By Mattila, Juri; Seppälä, Timo

  1. By: Peitz, M.; Schütt, F. (Tilburg University, TILEC)
    Abstract: Under strict net neutrality Internet service providers (ISPs) are required to carry<br/>data without any differentiation and at no cost to the content provider. We provide a simple framework with a monopoly ISP to evaluate different net neutrality rules. Content differs in its sensitivity to delay. Content providers can use congestion control techniques to reduce delay for their content, but do not take into account the effect of their decisions on the aggregate volume of traffic. As a result, strict net neutrality often leads to socially inefficient traffic inflation. We show that piece-meal departures from net neutrality, such as transmission fees or prioritization based on sensitivity to delay, do not necessarily improve efficiency. However, allowing the ISP to introduce bandwidth tiering and charge for prioritized delivery can implement the<br/>efficient allocation.
    Keywords: Net neutrality; network congestion; telecommunications,; uality of service
    JEL: L12 L51 L86
    Date: 2015
  2. By: T.D. Stanley; Chris Doucouliagos; Piers Steel
    Abstract: In this paper, we apply meta-regression analysis to 58 studies that explore the impact of ICT on economic growth. We find evidence of econometric specification bias and publication selection bias in favor of positive growth effects. After correcting these biases, we show that ICT has contributed positively to economic growth, on average. We find that both developed and developing countries benefit equally from landline and cell technologies, with cell’s contribution to growth being double that of landline. However, developed countries gain significantly more from computing than do developing countries. In contrast, the Internet has had little effect on growth.
    Keywords: ICT, economic growth, meta-regression analysis
    JEL: O3 O4
    Date: 2015–05–11
  3. By: Mattila, Juri; Seppälä, Timo
    Abstract: In the beginning of the 1990’s, various fragmented information networks of the Internet were combined into one integrated network of systems. As a result, the commercial utilization of the Internet boomed, creating completely new business models and economic structures in the process. A similar reaction is now anticipated from the digitalization of industry and society at large. However, the big question is, how can all the separately structured, isolated systems be fused into one seamless network of systems? So far the problem has mainly been addressed from the stand-point of centralized and decentralized system architectures. Our analysis shows, however, that completely new and innovative technological approaches, such as block chain technology, are emerging to address this problem. These new distributed architecture solutions may completely revolutionize the anticipated structures and business models of the digitalization currently in progress, as they allow machines to autonomously share much more than just data, e.g. computational capacity, storage space or even electric power. As a result, understanding digitalization in its full capacity requires a systems approach and new kind of higher-level thinking on the scale of a network of systems.
    Keywords: digitalization, industrial Internet, platforms, block chain
    JEL: L14 L15 L86 L96 O33
    Date: 2015–05–18

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