nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2018‒12‒17
eleven papers chosen by
Walter Frisch
Universität Wien

  1. Broadband Internet, Digital Temptations, and Sleep By Francesco Billari; Osea Giuntella; Luca Stella
  2. Smart Technologies Applied to the Energy Sector. Renewable Energy Expansion Strengthened by Digital Communications and Distributed Ledger Technologies? By Serrano-Calle, Silvia; Delarue, Erik
  3. Threat of Internet Platforms: Facebook, Google, etc. By Alleman, James
  4. Analysis of People's Willingness to Use Personalization Services in Times of Disaster By Koguchi, Teppei; Jitsuzumi, Toshiya
  5. Digitalization of Operations Management with Emotional and Intelligence Tools. Blockchain and IoT integration, the last disruption? By Serrano-Callea, Silvia; Roblesb, Tomás; Martínb, Diego; Mateosc, Raquel
  6. Antitrust Failures: The Internet Giants By Taschdjian, Martin; Alleman, James
  7. The Impact of Broadband Internet on Employment in France By Houngbonon, Georges V.; Liang, Julienne
  8. Success of firm strategies in e-commerce By Franz Hackl; Michael Hölzl-Leitner; Rudolf Winter-Ebmer; Christine Zulehner
  9. Digital Agriculture: Mobile Phones, Internet & Agricultural Development in Africa By Evans, Olaniyi
  10. Telecommunication Submarine-C able Deployment and the Digital Divide in Sub-Saharan Africa By Joel Cariolle
  11. The third pillar of the Investment Plan for Europe: The RHOMOLO assessment By Martin Christensen; Andrea Conte; Filippo Di Pietro; Patrizio Lecca; Giovanni Mandras; Simone Salotti

  1. By: Francesco Billari; Osea Giuntella; Luca Stella
    Abstract: There is a growing concern that the widespread use of computers, mobile phones and other digital devices before bedtime disrupts our sleep with detrimental effects on our health and cognitive performance. High-speed Internet promotes the use of electronic devices, video games and Internet addiction (e.g., online games and cyberloafing). Exposure to artificial light from tablets and PCs can alterate individuals’ sleep patterns. However, there is little empirical evidence on the causal relationship between technology use near bedtime and sleep. This paper studies the causal effects of access to high-speed Internet on sleep. We first show that playing video games, using PC or smartphones, watching TV or movies are correlated with shorter sleep duration. Second, we exploit historical differences in pre-existing telephone infrastructure that affected the deployment of high-speed Internet across Germany (see Falck et al., 2014) to identify a source of plausibly exogenous variation in access to Broadband. Using this instrumental variable strategy, we find that DSL access reduces sleep duration and sleep satisfaction.
    Keywords: Internet, Sleep Duration, Time use
    Date: 2017–10
    URL: http://d.repec.org/n?u=RePEc:don:donwpa:108&r=ict
  2. By: Serrano-Calle, Silvia; Delarue, Erik
    Abstract: The development of variable renewable energy (VRE) and their massive installation are some of the challenges that the economies of a large part of the world will have to face in the coming years to help ensure a reasonable sustainability of the planet. On the other hand, the advances that have been happening in recent decades in the telecommunications sector and the expansion of the Internet have helped to create a new scenario, giving way to growth opportunities in different economic sectors and new business models. One of the most disruptive tools that has emerged in this new digital ecosystem is what is known as Distributed Ledger Technology (DLT). The opportunity and applicability to strengthen VRE expansion is discussed in this article. To this end, selected case studies and main findings of interviews with experts are discussed. The introduction of blockchain technology, in particular in its use as a platform for smart contracts, offers a great potential, highly valued by experts, in addition to adding other relevant characteristics such as efficiency generated in operational terms and traceability, but also new opportunities for consumers and prosumers to build strong energy communities committed with a sustainable energy transaction. However, among the elements to be improved, we highlight the regulatory uncertainty regarding smart contracts´ security in terms of automatic mechanisms and its legal endorsement for use within the EU; adopting standards to facilitate scalability; and other issues of a more technological nature that should also be improved for a massive implementation in terms of optimizing energy efficiency of the model.
    Keywords: Blockchain,Digital Policy,Energy Policy,Smart Energy,Sustainable Development Goals
    JEL: L86 O33 Q28
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:zbw:itse18:184966&r=ict
  3. By: Alleman, James
    Abstract: Free!! Google and Facebook!!! We all know them, what to worry about? Everything! The giants of the internet are expanding into every corner of the economy, politics and our lives. They control the majority of digital advertising; Alphabet, Google's parent, and Facebook receive more than 60 percent of digital advertising revenue (Media Buying 2017); Google controls over 90 percent of search on the web (Statcounter 2017); Facebook and Google represent 40% of consumption of digital content (Economist 2017c). Facebook dominates the social media market (Galloway 2017, p. 96); Amazon has nearly 40 percent of online Xmas sales and is destroying the traditional retail outlets (Galloway 2017, p. 28). Apple earns over 90 percent of smart phone profits, although it has less than 20 percent of the market (Galloway 2017, p. 75). This paper will examine the threat to social order and democracy posed by Facebook and Google, as well as others in the internet space. Facebook, and Google have control over what information and news we receive though "black-box" algorithms; they select what "we need." In addition, these platforms have not taken significant measures to address "fake-news", bots, trolls, or other malicious software on the internet. Indeed, they make money off the proliferation of this misinformation. For example, even by its own calculation, "Facebook has estimated that Russian content on its network, including posts and paid ads, reached 126 million Americans, around 40% of the nation's population." (Economist 2017c) Up to 60 million Facebook accounts are fake, according to its own estimate (Shane and Isaac 2017). And according to the Economist (2017c), in the United States' presidential campaign, one out of every five political messages was posted by robots (bots) on Twitter. FANGs have a business models which encourages this type of practice (Shane and Isaac 2017). These models are designed to maximize growth and maintain users. Thus, they involve easy sign up, lack of verification of authenticity; and only, reluctantly, if at all, closing accounts with significant cause (Shane and Isaac 2017, Zittrain 2014). This paper will examine these issues in depth.
    Keywords: Advertising,Antitrust Policy,Democracy,Elections,Propaganda ICT,Internet Platforms,Political Economy
    JEL: K21 L1 L2 L4 L5 L9
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:zbw:itse18:184926&r=ict
  4. By: Koguchi, Teppei; Jitsuzumi, Toshiya
    Abstract: Japan has experienced major earthquake disasters in the past. The Great East Japan Earthquake of March 11, 2011 caused enormous damage. Subsequently, in April 2016, a major tremor centered in Kumamoto Prefecture in Kyushu also occurred. In the event of such a disaster, it is important to ensure that medical services are available and that a lifeline is secured. The use of information and communication technology, or ICT, is essential in implementing such efforts in an efficient manner. For example, ICT is very helpful in searching for evacuation routes, locating evacuation sites, tracking supply shortages, and understanding the situation at medical facilities. The use of ICT for such purposes requires personal information. Users can find their evacuation routes precisely because their locations are confirmed with GPS. People will also be able to locate medical facilities to receive special treatment if they register beforehand their pre-existing conditions. Thus, personal information utilization services are extremely effective in times of disaster. On the other hand, the use of personal information could raise concerns about privacy violations. While the use of personal information may allow for valuable services, privacy could be violated if data are leaked or handled in an inappropriate manner.
    JEL: L86 L96
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:zbw:itse18:184952&r=ict
  5. By: Serrano-Callea, Silvia; Roblesb, Tomás; Martínb, Diego; Mateosc, Raquel
    Abstract: Digital advances and the emergence of disruptive technologies have dramatically changed the business models across sectors and operations economics. The scope of this paper is to contribute to analyze the current disruptive revolution in operations management in a digitalized global market focusing on the impact of blockchain technology and IoT integration. New intelligence tools and emotional analysis are contributing to add trust and promote digital expansion across different sectors. Given the high economic impact of the operations management on virtually all productive enterprises, the benefits of digitalizing operations have continuously increased productivity and enhanced international competitiveness. This paper studies the opportunities of what could be one of the last disruptions in operations management, the introduction of blockchain combined with IoT technology and emotional intelligence tools to automate, in a cryptographically verifiable process, activities in digital supply chain networks. Keywords: Blockchain, IoT, Supply Chain Network, Operations Management, Digital Policy Funding: The research leading to these results has received funding from the Spanish Ministry of Economy and Competitiveness through SEMOLA project (TEC2015-68284-R) and from the Autonomous Region of Madrid through MOSI-AGIL-CM project (grant P2013/ICE-3019, cofunded by EU Structural Funds FSE and FEDER).
    JEL: L23 L81 M11
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:zbw:itse18:184967&r=ict
  6. By: Taschdjian, Martin; Alleman, James
    Abstract: Facebook, Amazon, Netflix and Google, as well as Twitter – the FANG companies – have transformed society with both positive and negative effects. Soaring consumer access to information, news, social networks, and entertainment has been stimulated by the ever-more ubiquitous and falling prices of broadband services. E-government has transformed the delivery of public services. However, negative effects have likewise been stark. Certainly, there have been huge disruptions caused by e-commerce. State tax collectors are fighting the loss of sales tax collections. Because Facebook and Google can identify you, the ads can be targeted to your specific wants and needs, even creating "wants and needs" based on your profile. So, what the "customer" – you – perceived as free is not. Indeed, you are the commodity being sold to the advertisers. Because Facebook and Google are two-sided markets, their economic rents are "hidden" from the public (and, apparently, from the antitrust authorities) . On the user side of the market, prices are zero – "free." The other side, advertising rates are "hidden." Facebook's and Google's revenues are derived from advertising which appears when you go to their sites. They can extract exorbitant prices for ads, since they are virtually the only source that can target ads directly to potential clients. This paper examines the potential for antitrust cases against Facebook and Google as a response to their perceived threats to consumer privacy, political influences and advertising dominance. The argument for antitrust action against them is based on the following arguments. Formally, their Herfindahl-Hirschman index (HHI) for search is 8,476. Combined they currently control over half of US digital advertising; these companies together have an HHI of 2,024. In terms of "social media" United States share of visits, Facebook and Google's HHI is "highly concentrated" at 2,471. Each has obtained de facto monopoly or oligopolistic power without any concern on the part of government. Their economic rents are "hidden" from the public because their revenues are derived from advertising which appear when you go to their sites. Thus, they can extract exorbitant prices for ads. Facebook and Google Herfindahl-Hirschman indices (HHI) are high, indicating a concentrated market or highly concentrated market by several different definitions of their markets. Nevertheless, no serious antitrust case or legislation has addressed this monopoly power.
    Keywords: Advertising,antitrust,competition,internet,media,regulation,pricing,two-sided market
    JEL: D4 K2 L1 L2 L5 L9
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:zbw:itse18:184969&r=ict
  7. By: Houngbonon, Georges V.; Liang, Julienne
    Abstract: The impact of broadband Internet on employment is ambiguous, but empirical evidence is still limited. In this paper, we exploit data on a massive adoption of broadband Internet in France to investigate the impact of broadband Internet on employment. Using a fuzzy difference-in-difference estimation strategy, we find that broadband Internet destroy jobs, although the unemployment rate seems not to be affected. This job destruction occurs in manufacturing activities, contrary to the service sector where broadband Internet adoption creates jobs. In addition, we find that raising the level of education in urban areas tends to alleviate the negative impact of broadband Internet on employment.
    Keywords: Broadband Internet,Employment
    JEL: D31 L96 O15
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:zbw:itse18:184945&r=ict
  8. By: Franz Hackl; Michael Hölzl-Leitner (Johannes Kepler University Linz); Rudolf Winter-Ebmer; Christine Zulehner
    Abstract: The choice of an appropriate e-commerce strategy is crucial for the survival of online stores in B2C e-commerce business. We use a comprehensive data set from the Austrian price search engine geizhals.at to identify successful e-commerce strategies. An e-commerce strategy is a set of choices including the listing decision, availability decision, and decisions on price and shipping cost. We apply cluster analysis to identify the different strategies that have been used by online retailers. Using various success measures such as revenue, clicks, market share, and the survival of firms, as dependent variables in our regression analyses, we present empirical evidence on the effectiveness of different e-commerce strategies.
    Keywords: e-commerce, online trade, business strategies, retailing
    JEL: L81 L10
    Date: 2018–08
    URL: http://d.repec.org/n?u=RePEc:jku:econwp:2018_10&r=ict
  9. By: Evans, Olaniyi
    Abstract: This study examines the non-linear relationship between mobile phones, internet and agricultural development in Africa for the period 2001–2015 using system generalized method of moments. The empirical results show a non-linear relationship between mobile phones, internet and agricultural development. Mobile penetration and squared mobile penetration have significant positive effects on agricultural value added, implying that mobile penetration has an increasing effect on agricultural value added. In contrast, internet usage has significant negative effects on agricultural value added, but squared internet usage has significant positive effects. This suggests a U-shaped pattern and a quadratic relationship: as internet usage increases, agricultural value added decreases, but after a certain level of internet usage which is the turning point, agricultural value added starts to increase. The causality analysis suggests the existence of uni-directional causality from mobile penetration and internet usage to agricultural value added. However, there is bi-directional causality between squared mobile penetration, squared internet usage and agricultural value added. This indicates that mobile phones and internet stimulate agricultural development which, in turn, boosts mobile penetration and internet usage even further in these countries. The results therefore provide evidence that mobile phones and internet play significant roles in agricultural development, as agricultural development also plays important roles in the expansion of mobile phones and internet.
    Keywords: Digital Agriculture; Mobile Phones; Internet; Agriculture
    JEL: Q1 Q13 Q16 Q19
    Date: 2018
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:90359&r=ict
  10. By: Joel Cariolle (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)
    Abstract: The recent deployment of fibre-optic submarine cables (SMCs) in sub-Saharan Africa (SSA) raised the prospects for the digital economy expansion and the whole sub-continent takeoff , but also exposed countries and populations to new sources of vulnerability. This paper provides empirical evidence on the ambivalent effect of SMC deployment on the digital divide in 46 SSA countries. On the one hand, results show that the laying of SEACOM, MainOne and EASSy cables in 2009-2010 has yielded a three percentage points increase in internet penetration rates. On the other hand, exogenous sources of telecommunication disruptions related to SMC laying-the country exposure to SMC outages and the population distance from SMC landing stations-are found to reduce internet and mobile penetration rates, to lower investments in ICTs, and to increase mobile-cellular tariffs and the wireline network instability. Therefore, while SMC arrival in SSA has reduced the digital divide, this divide would be lower if SSA countries were less digitally vulnerable.
    Keywords: Sub-Saharan Africa,telecommunications,ICT,Internet,submarine cables,infrastructures
    Date: 2018–11–28
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-01938451&r=ict
  11. By: Martin Christensen (European Commission - JRC); Andrea Conte (European Commission - JRC); Filippo Di Pietro (European Commission - JRC); Patrizio Lecca (European Commission - JRC); Giovanni Mandras (European Commission - JRC); Simone Salotti (European Commission - JRC)
    Abstract: The Investment Plan for Europe aims at removing obstacles to investment, providing visibility and technical assistance to investment projects, and at making smarter use of financial resources. The Investment Plan is made up of three pillars: the European Fund for Strategic Investment (EFSI); the European Investment Advisory Hub and the European Investment Project Portal; and the removal of regulatory barriers to investment. Policy simulations using the RHOMOLO dynamic CGE model show positive aggregate macro-economic effects of the EFSI. This Policy Insight contains the result of an additional set of RHOMOLO simulations aimed at quantifying the macroeconomic impact of the legislative proposals contained in the third pillar of the Investment Plan. The EU GDP is expected to be 1.5% higher by 2030 thanks to the removal of barriers to investment in the areas of the Capital Markets Union, the Single Market Strategy, the Digital Single Market, and the Energy Union. This entails the creation of about one million of jobs across the entire EU.
    Keywords: rhomolo, region, growth, investment plan for europe, third pillar, capital markets union, single market strategy, energy union, digital single market, modelling
    JEL: C54 C68 E62
    Date: 2018–11
    URL: http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc114088&r=ict

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