nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2019‒02‒04
nine papers chosen by
Walter Frisch
Universität Wien

  1. Do digital information technologies help unemployed job seekers find a job? Evidence from the broadband internet expansion in Germany By Gürtzgen, Nicole; Diegmann (né Nolte), André; Pohlan, Laura; van den Berg, Gerard J.
  2. Digital Government: ICT and Public Sector Management in Africa By Evans, Olaniyi
  3. Consumer Search with and without Tracking By Marcel Preuss
  4. Managing Competition on a Two-Sided Platform By Paul Belleflamme; Martin Peitz
  5. Effect of Online Systems Quality, Banking Service Product Quality and Customer Trust on the Success of BRI Syari'ah E-Banking Information System By Karmawan, Karmawan; Suhaidar, Suhaidar
  6. Inside the engine room of digital platforms: Reviews, ratings, and recommendations By Paul Belleflamme; Martin Peitz
  7. Enhancing ICT for quality education in Sub-Saharan Africa By Asongu, Simplice A; Odhiambo, Nicholas M
  8. Online Reputation Mechanisms and the Decreasing Value of Chain Affliation By Hollenbeck, Brett
  9. Transformational Leadership in Digital Era: Analysis of Nadiem Makarim (Founder of GO-JEK Indonesia) Leadership Figure By Junita, Imelda

  1. By: Gürtzgen, Nicole (Institute for Employment Research); Diegmann (né Nolte), André (Centre for European Economic Research (ZEW) and Institute for Employment Research (IAB)); Pohlan, Laura (Centre for European Economic Research (ZEW) and Institute for Employment Research (IAB)); van den Berg, Gerard J. (University of Bristol, IFAU Uppsala, IZA, ZEW, CEPR and CESifo)
    Abstract: This paper studies effects of the introduction of a new digital mass medium on reemployment of unemployed job seekers. We combine data on high-speed (broadband) internet availability at the local level with German individual register data. We address endogeneity by exploiting technological peculiarities that affected the roll-out of high-speed internet. The results show that highspeed internet improves reemployment rates after the first months in unemployment. This is confirmed by complementary analyses with individual survey data suggesting that internet access increases online job search and the number of job interviews after a fewmonths in unemployment.
    Keywords: Unemployment; online job search; information frictions; matching technology; search channels
    JEL: C26 H40 J64 K42 L96
    Date: 2018–11–30
  2. By: Evans, Olaniyi
    Abstract: This study examines the effect of information and communication technologies (ICT) on public sector management in Africa for the period 1995–2015 using panel GMM model and Toda-Yamamoto causality tests. The empirical evidence shows that ICT has a positive and statistically significant effect on public sector management, meaning that an increase in ICT is associated with improved public sector management. There is also a bi-directional causality between ICT and public sector management, suggesting that ICT spurs public sector management which, in turn, spurs ICT even further. The public sector, civil society and international actors therefore have the responsibility to collaborate at developing policies and applications that will maximize the potentials of digital government to every level of public sector in Africa.
    Keywords: Digital Government; ICT; Public Sector Management; public value; e-government
    JEL: H0 H00 H5 H54
    Date: 2018
  3. By: Marcel Preuss
    Abstract: In this paper, I develop a tractable framework with sequential consumer search to address the effect of tracking on market outcomes. Tracking search histories is informative about consumers’ valuations because different consumer types have different stopping probabilities. With tracking, the unique equilibrium price path is increasing whereas without tracking, an average uniform price prevails. Welfare effects largely depend on how tracking affects consumers’ search persistence. For intermediate search costs, tracking based price discrimination exacerbates the holdup problem and leads to inefficiently low search persistence. For high search costs instead, tracking prevents a market breakdown as low prices conditional on short search histories secure consumers a positive surplus from search. Tracking prevails endogenously when consumers can dynamically opt out from tracking. This holds since disclosing their search history is always individually rational for consumers, irrespective of the overall effect on consumer surplus.
    Keywords: consumer search, privacy, dynamic price discrimination
    JEL: D11 D18 D83 L13 L86
    Date: 2018–05
  4. By: Paul Belleflamme; Martin Peitz
    Abstract: On many two-sided platforms, users on one side not only care about user participation and usage levels on the other side, but they also care about participation and usage of fellow users on the same side. Most prominent is the degree of seller competition on a platform catering to buyers and sellers. In this paper, we address how seller competition affects platform pricing, product variety, and the number of platforms that carry trade.
    Keywords: Network effects, two-sided markets, platform competition, intermediation, pricing, imperfect competition
    JEL: D43 L13 L86
    Date: 2018–07
  5. By: Karmawan, Karmawan; Suhaidar, Suhaidar
    Abstract: This study will discuss and to find out and test whether Online Systems Quality, Banking Service Product Quality and Customer Trust are thought to influence the Success of E-Banking Information System in one of the Shariah Banks in Pangkalpinang City. This research is quantitative research, using primary data, the instrument used is a questionnaire given to respondents. The population in this study is the Customer of BRI Bank Syari'ah PangkalPinang Branch, while the sampling technique used is convenience sampling technique. The data of this study will be processed and analyzed by Multiple Linear Regression tests with the aim to find out how far the knowledge and level of understanding of Online Systems Quality, Banking Service Product Quality and Customer Trust are thought to influence the success of E-Banking Information System in BRI Sharia Banks in Pangkalpinang.
    Keywords: online systems quality; product quality banking service; customer trust; e-banking information system
    JEL: G21 L15
    Date: 2019–01–05
  6. By: Paul Belleflamme; Martin Peitz
    Abstract: The rise and success of digital platforms (such as Airbnb, Amazon, Booking, Expedia, Ebay, and Uber) rely, to a large extent, on their ability to address two major issues. First, to effectively facilitate transactions, platforms need to resolve the problem of trust in the implicit or explicit promises made by the counterparties; they post reviews and ratings to pursue this objective. Second, as platforms operate in marketplaces where information is abundant, they may guide their users towards the transactions that these users may have an interest in; recommender systems are meant to play this role. In this article, we elaborate on review, rating, and recommender systems. In particular, we examine how these systems generate network effects on platforms.
    Keywords: Platforms, network effects, ratings, recommender systems, digital economics
    JEL: L15 L81 L86 D82 D85
    Date: 2018–02
  7. By: Asongu, Simplice A; Odhiambo, Nicholas M
    Abstract: This research assesses the relevance of information and communication technology (ICT) in primary education quality in a panel of 49 Sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Two Stage Least Squares (2SLS) and Instrumental Quantile regressions (IQR). From the 2SLS: (i) mobile phone and internet penetration rates reduce poor quality education and enhancing internet penetration has a net negative effect of greater magnitude. From the IQR: (i) with the exception of the highest quantile for mobile phone penetration and top quantiles for internet penetration, ICT consistently has a negative effect on poor education quality with a non-monotonic pattern. (ii) Net negative effects are exclusively apparent in the median and top quantiles of internet-related regressions. It follows that enhancing internet penetration will benefit countries with above-median levels of poor education quality while enhancing internet penetration is not immediately relevant to reducing poor education quality in countries with below-median levels of poor education quality.
    Keywords: ICT; Primary school education; Development; Sub-Saharan Africa
    Date: 2019–01
  8. By: Hollenbeck, Brett
    Abstract: This paper investigates the value of branding and how it is changing in response to a large increase in consumer information provided by online reputation mechanisms. As an application of umbrella branding, theory suggests much of the value to firms of chain affiliation results from asymmetric information between buyers and sellers. As more information becomes available, consumers should rely less on brand names as quality signals and the ability for firms to extend reputations across heterogenous outlets should decrease. To examine this empirically, this paper combines a large, 15 year panel of hotel revenues with millions of online reviews from multiple platforms and performs a machine learning analysis of review text to recover latent, time-varying dimensions of firm quality. I find that branded, or chain-affiliated, hotels earn substantially higher revenues than equivalent independent hotels, but that this premium has declined by over 50% from 2000 to 2015. I find that this can be largely attributed to an increase in online reputation mechanisms, and that this affect is largest for low quality and small market firms. Numerous measures of the information content of online reviews show that as information has increased, independent hotel revenue grows substantially more than chain hotel revenue. Finally, the correlation between firm revenue and brand-wide reputation is decreasing and the correlation with individual hotel reputation is replacing it.
    Keywords: Online Reviews, Branding, Text Analysis, Franchising
    JEL: L15 L22
    Date: 2018–10
  9. By: Junita, Imelda
    Abstract: Technology and internet have driven innovation and new opportunities by digitizing customers, companies, products, services, and processes. In the digital era, the company has potential to touch all aspects of the business, including customers, employees, partners, business processes, and also a global network of businesses and things from every industry around the world. These conditions bring fundamental changes to community behaviours and its potential consequences. When the organizations adapt themselves to the changes, they require transformational leadership. The objective of this paper is to describe the concept of transformational leadership as a hallmark of a future digital business leader. From the evidence in the literature, in many successful organizations, transformational leaders have contributed to increasing the effectiveness and performance of the organizations. By using the descriptive method with a phenomenological approach, the practice of transformational leadership of Nadiem Makarim as the founder of GO-JEK Indonesia (an Indonesian-owned and run technology start-up that specializes in ride-hailing, logistics, and digital payments) is examined. Then, this paper as a preliminary study provides a review of how Makarim’s leadership philosophy and practice has brought GO-JEK into success, Indonesia’s biggest start-up.
    Keywords: transformational leadership; successful organization
    JEL: L91 O15
    Date: 2019–01–05

This nep-ict issue is ©2019 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.
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