nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2017‒06‒04
five papers chosen by
Walter Frisch
Universität Wien

  1. The Production of Information in an Online World: Is Copy Right? By Cagé, Julia; Hervé, Nicolas; Viaud, Marie-Luce
  2. B2B digital marketing strategy: A framework for assessing digital touchpoints and increasing customer loyalty By Elina Bakhtieva
  3. Does Choice Increase Information? Evidence from Online School Search Behavior By Michael F. Lovenheim; Patrick Walsh
  4. Straight Talkers and Vague Talkers: The Effects of Managerial Style in Earnings Conference Calls By Michał Dzieliński; Alexander F. Wagner; Richard J. Zeckhauser
  5. Firms’ Default – from Prediction Accuracy to Informational Capacity of Predictors By Tomasz Berent; Boguslaw Blawat; Marek Dietl; Radoslaw Rejman

  1. By: Cagé, Julia; Hervé, Nicolas; Viaud, Marie-Luce
    Abstract: This paper documents the extent of copying and estimates the returns to originality in online news production. We build a unique dataset combining all the online content produced by the universe of news media (newspaper, television, radio, pure online media, and a news agency) in France during the year 2013 with new micro audience data. We develop a topic detection algorithm that identifies each news event, trace the timeline of each story and study news propagation. We show that one quarter of the news stories are reproduced online in less than 4 minutes. High reactivity comes with verbatim copying. We find that only 32.6% of the online content is original. The negative impact of copying on newsgathering incentives might however be counterbalanced by reputation effects. By using media-level daily audience and article-level Facebook shares, we show that original content represents 57.8% of online news consumption. Reputation mechanisms actually appear to solve about 40% of the copyright violation problem.
    Keywords: Copyright; Facebook; Information spreading; internet; Investigative journalism; reputation
    JEL: L11 L15 L82 L86
    Date: 2017–05
  2. By: Elina Bakhtieva (Tomas Bata University in Zlín)
    Abstract: Digital marketing has changed the nature of company-to-customer communication. With rising information overload and reduced decision-making time, touchpoints have gained additional importance by yielding customer loyalty. Yet the existing digital marketing tools have failed to keep pace with these trends. Companies are lacking a simple framework that focuses on a digital marketing strategy built around touchpoints and customer loyalty. This is especially relevant for B2B companies, which due to their specifics are more dependent on customers and less flexible in adapting of new digital trends. A B2B business strategy tailored to digital trends demands a re-evaluation of prior understanding of a product portfolio, a company’s internal and external environment. The purpose of the article is to present a framework that helps to undertake the necessary changes and enables the connections with industry. The suggested model has been drawn from the literature review and been extended based on the findings of an empirical multiple case study. Aspiring to follow trends in digital marketing and to help B2B companies to adapt their strategy to ongoing changes in company-to-customer communication, a new framework has been developed. The framework aims to increase customer loyalty and focuses on channels/touchpoints, assets, skills, audience and customer journey. The model could be beneficial for Chief Marketing Officers (CMO) and other C-levels by offering a simple and reliable tool for improving a company's position in the digital marketplace. Moreover, it enables continuously adjustment of an already existing business strategy.
    Keywords: digital marketing, customer loyalty, touchpoints, B2B digital marketing strategy, B2B industrial companies
    JEL: M31 L1
    Date: 2017–05
  3. By: Michael F. Lovenheim; Patrick Walsh
    Abstract: We examine whether changes in the local school choice environment affect the amount of information parents collect about local school quality, using data on over 100 million searches from We link monthly data on search frequency in local “Search Units” to information on changes in open enrollment policies, tuition vouchers, charitable scholarship tax credits, tuition tax credits, local choice opportunities driven by No Child Left Behind sanctions and charter school penetration. Our results indicate that expansions in school choice rules and opportunities in a given area have large, positive effects on the frequency of searches done for schools in that area. These estimates suggest that the information parents have about local schools is endogenous to the choice environment they face, and that parental information depends not just on the availability of data, but also the incentive to seek and use it.
    JEL: H75 I20 I28
    Date: 2017–05
  4. By: Michał Dzieliński; Alexander F. Wagner; Richard J. Zeckhauser
    Abstract: Managers conducting earnings conference calls display distinctive styles in their word choice. Some CEOs and CFOs are straight talkers. Others, by contrast, are vague talkers. Vague talkers routinely use qualifying words indicating uncertainty, such as “approximately”, “probably”, or “maybe”. Analysts and the stock market attend to the style of managerial talk. They find earnings news less informative when managers are vague; they respond less and more slowly as a result. Thus, quantitative information and straightforward contextual information prove to be complements. Vague communications have the potential benefit of tamping down over-optimistic analysts expectations.
    JEL: G14 G30
    Date: 2017–05
  5. By: Tomasz Berent (Warsaw School of Economics); Boguslaw Blawat (Kozminski University); Marek Dietl (Warsaw School of Economics); Radoslaw Rejman (Warsaw School of Economics)
    Abstract: Research background: Bankruptcy literature is populated with scores of (econometric) models ranging from Altman’s Z-score, Ohlson’s O-score, Zmijewski’s probit model to k-nearest neighbors, classification trees, support vector machines, mathematical programming, evolutionary algorithms or neural networks, all designed to predict financial distress with highest precision. Purpose of the article: We believe corporate default is too an important research topic to be identified with the prediction accuracy only. Despite the wealth of modelling effort, a unified theory of default is yet to be proposed. Due to the disagreement, both on the definition and hence the timing of default as well as on the measurement of prediction accuracy, the comparison (of predictive power) of various models can be seriously misleading. The purpose of the article is to argue for the shift in research focus from maximizing accuracy to the analysis of the information capacity of predictors. By doing this, we may yet come closer to understand default itself. Methodology/methods: We have critically appraised the bankruptcy research literature for its methodological variety and empirical findings. Default definitions, sampling procedures, in and out-of-sample testing and accuracy measurement have all been scrutinized. We believe the bankruptcy models currently used are, using the language of Feyerabend, incommensurable. Findings: Instead of what we call the population of models paradigm (the comparison of predictive power of different models) prevailing today, we propose the model of population paradigm, consisting in the estimation a single unified default forecasting platform for both listed and non-listed firms, and analyze the marginal contribution of the different information sources. In addition to classical corporate financial data, information on both firm's strategic position and its macroeconomic environment should be studied.
    Keywords: default, bankruptcy, default probability; prediction accuracy, informational capacity
    JEL: C53 E47 G33
    Date: 2017–05

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