nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2017‒05‒28
two papers chosen by
Walter Frisch
Universität Wien

  1. Open Source and Competition Strategy Under Network Effects By Yu Wang; Yu Chen; Bonwoo Koo
  2. Mass media and attitudes to inequality By Debora Di Gioacchino; Alina Verashchagina

  1. By: Yu Wang (School of Economics, Nanjing University); Yu Chen (University of Graz); Bonwoo Koo (University of Waterloo)
    Abstract: This study analyzes a firm's decision to adopt an open source strategy in the development of a primary system product that has an indirect network effect on complementary accessory products, and evaluates its impact on market competition and social welfare. It shows that open source systems can drive proprietary systems out of the market if system development costs are high and the network effect is strong. This study also shows that the presence of open source systems can benefit proprietary firms due to consumers' higher willingness-to-pay for accessory products, and increase total industry profit and social welfare.
    Keywords: Hotelling model, packaged goods, network effect, horizontal product differentiation
    JEL: L14 L15 L17 L86
    Date: 2017–05
  2. By: Debora Di Gioacchino; Alina Verashchagina
    Abstract: We aim to investigate which is the potential of various mass media to influence individuals’ attitude to inequality. A theoretical model is proposed to formalize how preferences towards redistribution are formed. It is then tested empirically by using the data from the European Social Survey offering information on the time people spend watching TV and using internet. Mass media are assumed to affect the value people attach to equality, and in particular equality of opportunity, which is reflected in their attitude towards income redistribution. This process is modeled by using the ordered probit technique and the conditional mixed process estimator. Moreover, by estimating the dose-response function, we highlight that the relation between exposure to mass media and attitudes to inequality is non-linear. We also test the impact of various media market and personal characteristics and point out some cross-country differences is the way attitudes to inequality are shaped
    Keywords: mass media, attitudes to inequality
    JEL: L82 D63 D31 D72 D83
    Date: 2017–05

This nep-ict issue is ©2017 by Walter Frisch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.