nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2015‒07‒04
eight papers chosen by
Walter Frisch
Universität Wien

  1. Strategic Investment Dependence and Net Neutrality By Nielsen, Martin
  2. Do poor countries really need more IT ? the role of relative prices and industrial composition By Eden,Maya; Gaggl,Paul
  3. The price of broadband quality: tracking the changing valuation of service characteristics By Coyne, Bryan; Lyons, Sean
  4. The Economics of Television and Online Video Markets By Crawford, Gregory S
  5. Cross-border Content: Investigation into Sharing Curricula across Borders and the Opportunities for OER By Giles Pepler; Sara Frank Bristow; Paul Bacsich; Nick Jeans; Riina Vuorikari
  6. Detection and Measurement of Sales Cannibalization in Information Technology Markets By Novelli, Francesco
  7. The emerging role of telehealth in a New Zealand ambulance service By Stevenson, Jared
  8. The impact of mobile phones on the performance of university students By Khan, Jangraiz; Khan Malik, Zilakat; Amin, Suleman

  1. By: Nielsen, Martin (Department of Business and Economics)
    Abstract: This paper analyzes the way payments by content providers to an Internet service provider may affect investment in Internet speed and content quality. It derives payment mechanisms capable of aligning investment incentives between the two groups; in fact, some of them are Pareto-improving also for consumers, who are willing to pay for quality of content. On the other hand, some parameter combinations may require public intervention for Pareto improvement to be attained.
    Keywords: Internet regulation; Network neutrality; Investment incentives; Monopoly; Duopoly; Regulation; Internet content; Netflix; Internet service providers; AT&T; Verizon; Comcast
    JEL: C72 D42 D43 L12 L13 L14
    Date: 2015–06–29
  2. By: Eden,Maya; Gaggl,Paul
    Abstract: Conventional wisdom suggests too little information and communication technologies (ICT) in poor countries. Indeed, within 70 countries at various levels of development, there is a positive relationship between income per capita and the capital share of ICT. While this regularity is consistent with explanations based on technology adoption lags and ICT-labor substitutability, there is little empirical support for these hypotheses. Instead, the paper establishes that this regularity can be fully accounted for by (a) relatively higher ICT prices in low-income countries and (b) industrial composition.
    Keywords: E-Business,Knowledge Economy,Economic Theory&Research,Investment and Investment Climate,Information and Communication Technologies
    Date: 2015–06–30
  3. By: Coyne, Bryan; Lyons, Sean
    Abstract: This paper investigates how retail broadband prices, choice and quality are changing over time. Using a dataset containing daily observations of plans offered in Ireland from 2007 to 2013, this paper applies hedonic modelling techniques to observe the changing pricing of service characteristics. We augment our results by restricting the analysis to large operators and also by weighting by operator market share for a subset of our data (2010-2013). Although we find that average nominal prices remain static throughout our sample period, quality of service has risen dramatically over time, particularly with respect to download speed. Some characteristics of broadband plans exhibit broadly stable valuations over time, but the elasticity of price with respect to advertised download speed and the premium on bundled plans declined during the sample period. In addition, the retail price premium enjoyed by the incumbent operator fell significantly since 2007.
    Keywords: broadband services, market analysis, Ireland
    JEL: L11 L96
    Date: 2015–07–01
  4. By: Crawford, Gregory S
    Abstract: Television is the dominant entertainment medium for hundreds of millions. This chapter surveys the economic forces that determine the production and consumption of this content. It presents recent trends in television and online video markets, both in the US and internationally, and describes the state of theoretical and empirical research on these industries. A number of distinct themes emerge, including the growing importance of the pay-television sector, the role played by content providers (channels), distributors, and negotiations between them in determining market outcomes, and concerns about the effects of market power throughout this vertical structure. It also covers important but unsettled topics including the purpose for and effects of both the old (Public Service Broadcasters) and the new (online video markets). Open theoretical and empirical research questions are highlighted throughout.
    Keywords: advertising; bargaining; bundling; economics; foreclosure; market power; net neutrality; online video; pay television; public service broadcasting; television
    JEL: C72 D40 L32 L40 L50 L82 L86 M37
    Date: 2015–06
  5. By: Giles Pepler (Sero Consulting); Sara Frank Bristow (Sero Consulting); Paul Bacsich (Sero Consulting); Nick Jeans (Sero Consulting); Riina Vuorikari (JRC-IPTS)
    Abstract: The aim of this study was to make an inventory of the existing cases in formal education (school sector, vocational education and higher education) where a curriculum or syllabus is shared across borders (e.g. state, national, linguistic and cultural). Based on the analysis of the desk research and a case study, further considerations was given to the potential cross border sharing of curricula/syllabi could have for Open Educational Resources, either existing or prospective. The study was conducted in three parts. The first involved scoping and classifying cross-border syllabi/curricula initiatives and their drivers. This was followed by a detailed case study of the US Common Core State Standards Initiative and its impact on OER. These two parts are brought together in this final report and the research findings and they issues they raise are discussed. Finally, the report identifies potential areas for investigation to leverage synergies between cross-border syllabi/curricula and OER in the context of formal education in the EU. The report calls for visionary multi-stakeholder initiatives in the area of cross-border curricula and education that could offer viable collaboration on Open Educational Resources. This could benefit not only single Member States, but also create an outlook that, in the longer term, might form a pillar of the development of a European connected digital single market, for example for boosting digital skills and learning.
    Keywords: Open Educational Resources, cross-border content
    JEL: I20 I21 I28 I29
    Date: 2015–05
  6. By: Novelli, Francesco
    Abstract: Characteristic features of Information Technology (IT), such as its intrinsic modularity and distinctive cost structure, incentivize IT vendors to implement growth strategies based on launching variants of a basic offering. These variants are by design substitutable to some degree and may contend for the same customers instead of winning new ones from competitors or from an expansion of the market. They may thus generate intra-organizational sales diversion – i.e., sales cannibalization. The occurrence of cannibalization between two offerings must be verified (the detection problem) and quantified (the measurement problem), before the offering with cannibalistic potential is introduced into the market (ex-ante estimation) and/or afterwards (ex-post estimation). In IT markets, both detection and measurement of cannibalization are challenging. The dynamics of technological innovation featured in these markets may namely alter, hide, or confound cannibalization effects. To address these research problems, we elaborated novel methodologies for the detection and measurement of cannibalization in IT markets and applied them to four exemplary case studies. We employed both quantitative and qualitative methodologies, thus implementing a mixed-method multi- case research design. The first case study focuses on product cannibalization in the context of continuous product innovation. We investigated demand interrelationships among Apple handheld devices by means of econometric models with exogenous structural breaks (i.e., whose date of occurrence is given a priori). In particular, we estimated how sales of the iPod line of portable music players were affected by new-product launches within the iPod line itself and by the introduction of iPhone smartphones and iPad tablets. We could find evidence of expansion in total line revenues, driven by iPod line extensions, and inter- categorical cannibalization, due to iPhones and iPads Mini. The second empirical application tackles platform cannibalization, when a platform provider becomes complementor of an innovative third party platform thus competing with its own proprietary one. We ascertained whether the diffusion of GPS-enabled smartphones and navigation apps affected sales of portable navigation devices. Using a unit-root test with endogenous breaks (i.e., whose date of occurrence is estimated), we identified a negative shift in the sales of the two leaders in the navigation market and dated it at the third quarter of 2008, when the iOS and Android mobile ecosystems were introduced. Later launches of their own navigation apps did not significantly affect these manufacturers’ sales further. The third case study addresses channel cannibalization. We explored the channel adoption decision of organizational buyers of business software applications, in light of the rising popularity of online sales channels in consumer markets. We constructed a qualitative channel adoption model which takes into account the relevant drivers and barriers of channel adoption, their interdependences, and the buying process phases. Our findings suggest that, in the enterprise software market, online channels will not cannibalize offline ones unless some typical characteristics of enterprise software applications change. The fourth case study deals with business model cannibalization – the organizational decision to cannibalize an existent business model for a more innovative one. We examined the transition of two enterprise software vendors from on-premise to on-demand software delivery. Relying on a mixed- method research approach, built on the quantitative and qualitative methodologies from the previous case studies, we identified the transition milestones and assessed their impact on financial performances. The cannibalization between on-premise and on-demand is also the scenario for an illustrative simulation study of the cannibalization.
    Date: 2015–02–04
  7. By: Stevenson, Jared
    Abstract: Telehealth systems – using ICT to manage health from a distance – have been developing for decades, including within the ambulance sector. The author undertook this research to better understand how telehealth could improve patient outcomes, improve effectiveness, or create efficiencies for the St John ambulance service. To achieve this, current literature was reviewed and a small group of experts were interviewed whose experience lies in either the ambulance service or the health sector. Key recommendations are described below: • It is of strategic importance to design ambulance telehealth systems with interoperability and interconnectivity – this will maximise health sector integration and governmental support. • Telehealth solutions should be based on simple, well-established, easy to use, and ubiquitous technologies. This reduces fear, limits technical challenges, enables technology adoption, and improves chances of success. Of all available technologies, video-calling provides the most opportunity at present. • Consistent with the 111 Clinical Hub model, St John should centralise specialists to provide telehealth support. This approach is cost effective as only a small number of specialists is required. It also supports effective clinical decision-making as this group routinely make complex decisions. • It is realistic for St John to integrate video-calling as a telehealth solution into the 111 Clinical Hub. As a patient-to-clinician tool, 111 Clinical Hub staff could use video connections to call back low acuity patients to perform a secondary triage. As a clinician-to-clinician tool, paramedics could video-call the 111 Clinical Hub for clinical support. This would increase the richness of communication, and enable better clinical decisions to be made. • While it is unclear the role that remote monitoring will play in improving an ambulance service, it is clear is that medical alarms will evolve to have much greater functionality, including sharing of biometric information. St John needs to make a strategic decision as to whether it wants to play the role of monitoring those with long-term conditions – and therefore being responsible for taking action when there are any signs of deterioration – or whether that should be the role of general practitioners (GPs). • When designing telehealth solutions, St John must consider whether it is creating unequal access to healthcare and, where created, take actions to mitigate these inequities. • It is important that St John clearly communicates any new telehealth interventions – resistance to change must be anticipated and therefore strong communication strategies must be part of the design process. • There is limited evidence to support telehealth solutions in terms of improved patient satisfaction, improved patient outcomes, or greater efficiencies. With the impending implementation of electronic patient report form (ePRF) there is opportunity to evaluate a telehealth solution in these terms. • It’s important to note that, regardless of the telehealth system adopted, no single solution will be effective – real improvements will require multiple integrated systems.
    Keywords: Ambulance, Telehealth, NZ, New Zealand,
    Date: 2014
  8. By: Khan, Jangraiz; Khan Malik, Zilakat; Amin, Suleman
    Abstract: This Paper concentrates on the impact of mobile phones on university students with special reference to University of Peshawar. A sample of 100 students was drawn from different departments of University of Peshawar for this purpose. The study used descriptive and quantitative tools for analysis. The results showed that almost 60% of the students got mobile phones from their parents. 42% of the students keep mobile phones for contacts with friends and society. Out of the sampled students, 6% use mobile phone for information access. Majority of the students (87%) are using mobile phone for the period of more than one year. They feel proud of having costly mobile phones and sometimes, use it as a source of unfair means during examination. They use its dictionary and other informative functions. The parents of female students feel easy with mobile phone to contact their daughters. They think that this new technology has not only improved the academic performance of the students but also improved the quality of education. It is recommended that the university students should try use of mobile phones positively and not waste their time unproductive text messages.
    Keywords: Mobile Phones, University Students, SMS, University of Peshawar, Odds Ratio
    JEL: I0 Z0 Z00
    Date: 2014–12–16

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