nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2019‒08‒26
six papers chosen by
Marek Giebel
Universität Dortmund

  1. Technology-induced Trade Shocks? Evidence from Broadband Expansion in France By Malgouyres, Clément; Mayer, Thierry; Mazet, Clément
  2. Artificial Intelligence Applications & Venture Funding in Healthcare By Halminen, Olli; Tenhunen, Henni; Heliste, Antti; Seppälä, Timo
  3. Digital Transformation and Lean Management. Challenges in the Energy Industry of Utilities. A Review By Angelopoulos, Michail; Kontakou, Christina; Pollalis, Yannis
  4. From Mad Men to Maths Men: Concentration and Buyer Power in Online Advertising By Decarolis, Francesco; Rovigatti, Gabriele
  5. Economic Implications of New Technologies for Licensed and Unlicensed Spectrum By John P. Conley
  6. Airbnb, Technological Change and Disruption in Barbadian Tourism: A Theoretical Framework By Lorde, Troy; Joseph, Tennyson S D

  1. By: Malgouyres, Clément; Mayer, Thierry; Mazet, Clément
    Abstract: In this paper, we document the presence of ''technology-induced'' trade in France between 1997 and 2007 and assess its impact on consumer welfare. We use the staggered roll-out of broadband internet to estimate its causal effect on the importing behavior of affected firms. Using an event-study design, we find that broadband expansion increases firm-level imports by around 25%. We further find that the ''sub-extensive'' margin (number of products and sourcing countries per firm) is the main channel of adjustment and that the effect is larger for capital goods. Finally, we develop a model where firms optimize over their import strategy and which yields a sufficient statistics formula for the quantification of the effects of broadband on consumer welfare. Interpreted within this model, our reduced-form estimates imply that broadband internet reduced the consumer price index by 1.7% and that the import-channel, i.e. the enhanced access to foreign goods that is allowed by broadband, accounts for a quarter of that effect.
    Keywords: consumer welfare; Imports; internet; Trade
    JEL: F14 F15 L23 O33
    Date: 2019–07
  2. By: Halminen, Olli; Tenhunen, Henni; Heliste, Antti; Seppälä, Timo
    Abstract: Abstract Venture Capital (VC) funding raised by companies producing Artificial Intelligence (AI) solutions is on the rise. In healthcare, VC funding is distributed unevenly and certain technologies have attracted significantly more funding than others. The funding decisions made by VC companies also work as a technology driver for the industry. We analyzed a database of 106 Healthcare AI companies collected from open online sources to understand factors affecting VC funding of AI companies operating in different areas of healthcare. Companies acting as R&D catalysts have been most succesful in raising VC funding. The results suggest that there is a significant connection between higher funding and having research organizations and pharmaceutical companies as the customer of the product or service. In addition, focusing on AI solutions that are applied to direct patient care delivery is associated with lower funding. We discuss the implications of our findings on health technology research and development, and on the barriers of platform data markets in healthcare industry.
    Keywords: Artificial Intelligence, Capital Funding, Technology
    JEL: G2 G24 I1 I19
    Date: 2019–08–20
  3. By: Angelopoulos, Michail; Kontakou, Christina; Pollalis, Yannis
    Abstract: In an era of increasing technological transformation, industries, competitors, and companies are combining platforms to create unique methods for engagement. Survival and growth in a rapidly changing marketplace require companies to embrace internal innovation that adds value for both channel members and customers. The fourth industrial revolution has already begun to take shape, on the road to an end-to-end value chain, by using Industrial Internet of Things (IIoT) and decentralized intelligence in manufacturing, production and logistics. The world is heading toward a digitized future. Already, an entire generation has grown up immersed in the digital world. This paper focus on the following fields: General Strategy and Procedural Aspects of Digital Transformation, Digital Transformation and Lean, Lean Digital Management, Applying Lean Digital Transformation and Transformation of Enterprise Resource Planning Systems to Smart Engaged Systems. Finally, this research study the challenges of Digital Transformation in Energy Industry of Utilities.
    Keywords: Digital Transformation, Lean, Lean Digital Management, Digital Transformation in Energy
    JEL: L00 L10 L94 M0 M1 M21 O32
    Date: 2019–08–12
  4. By: Decarolis, Francesco; Rovigatti, Gabriele
    Abstract: This paper analyzes the impact of intermediaries' concentration on the allocation of revenues in online platforms. We study sponsored search - the sale of ad space on search engines through online auctions - documenting how advertisers increasingly bid through a handful of specialized intermediaries. This enhances automated bidding and data pooling, but lessens competition whenever the intermediary represents competing advertisers. Using data on nearly 40 million Google's keyword-auctions, we first apply machine learning algorithms to cluster keywords into thematic groups serving as relevant markets. Then, through an instrumental variable strategy, we quantify a negative and sizeable impact of intermediaries' concentration on platform's revenues.
    Keywords: Buyer Power; Concentration; online advertising; platforms; Sponsored Search
    JEL: C72 D44 L81
    Date: 2019–07
  5. By: John P. Conley (Vanderbilt University)
    Abstract: Rapid changes in technology create challenges and opportunities for spectrum regulators. Enabling connectivity and maximizing the value of the very finite amount of bandwidth available will play an increasingly important role in the country's economic development and innovative potential. In this paper, we attempt to clarify the nature of spectrum as an economic resource. We show how and why there will be market failure, and how the tools available to regulators might best be deployed in response. We consider the spectrum needs of emerging technologies and how judicious choices of protocols, regulations, market structures might help satisfy them. In particular, we focus on factors that make licensed or unlicensed approaches the best choice for different use cases. Finally, we discuss the similarities between wireless and wired broadband and what this suggest about net neutrality and market structure in the appendix.
    Keywords: Licensed and Unlicensed Spectrum, Spectrum Allocation, 802.11, WiFi, LTE, LTE-u, Net Neutrality, IoT, Cognitive Radio, Communications Protocols, Public Goods, Externalities
    JEL: L8 H4
    Date: 2019–08–16
  6. By: Lorde, Troy; Joseph, Tennyson S D
    Abstract: This paper focuses on how Airbnb, an internet platform which has created the possibility for mass participation in the tourism market, is resulting in class conflict between new entrants and the ‘traditional’ tourism industry. Specifically, it studies how traditional tourism interests in Barbados have responded to Airbnb by seeking to restrict participation in the industry and presents this as a microcosm of broader class transitions and conflicts associated with new technologies. The paper utilises a Marxist theoretical perspective buttressed by Joseph Schumpeter’s theory of ‘creative destruction’ – places emphasis on the process of destroying productive systems to understand how specific industries expand and survive – and Clayton Christensen’s notion of ‘disruptive innovation’ – a process by which a disruptive product transforms a market – for studying how transformations in technology are impacting the tourism industry in Barbados. Its aim is to provide an account of how the process of disruption is unfolding in Barbados by highlighting the reactions of the main hotel lobby group to Airbnb, while also applying the ideas of Marx, Schumpeter and Christensen as useful theoretical lenses through which to examine the unfolding of the process of disruption of settled class and historical control of a dominant economic sector by new technologies.
    Keywords: Airbnb Marxist theory creative destruction disruptive innovation tourism industry class relations
    JEL: B51 L83 O1 Z13
    Date: 2018–06–06

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