nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2020‒02‒10
fourteen papers chosen by
Marek Giebel
Universität Dortmund

  1. Antitrust and Restrictions on Privacy in the Digital Economy By Nicholas Economides; Ioannis Lianos
  2. The impact of consumer protection in the digital age: Evidence from the European Union By Rösner, Anja; Haucap, Justus; Heimeshoff, Ulrich
  3. The digital leader: What one needs to master today's organisational challenges By Klus, Milan Frederik; Müller, Julia
  4. The Editor vs. the Algorithm: Returns to Data and Externalities in Online News By Jörg Claussen; Christian Peukert; Ananya Sen
  5. An Improved Connectivity Component for an Infrastructure Index for Remote Indigenous Communities By Myeonwan Kim; James Ashwell; Nicole Johnston; Sebastian Tansil
  6. Information Design in Blockchain: A Role of Trusted Intermediaries By Hitoshi Matsushima
  7. Big Tech Mergers By Massimo Motta; Martin Peitz
  9. The Second Industrial Revolution has Brought Modern Social and Economic Developments By Mohajan, Haradhan
  10. Building Knowledge Economies in Africa: An Introduction By Simplice A. Asongu; John Kuada
  11. Crowdseeding in Eastern Congo: Using Cell Phones to Collect Conflict Events Data in Real Time By van der Windt, Peter Cornelis; Humphreys, Macartan
  12. Dynamic Connectedness And Spillovers Across Sectors: Evidence From The Indian Stock Market By Ioannis Chatziantoniou; David Gabauer; Hardik A. Marfatia
  13. The Future of Work : Race with-not against-the Machine By Chuah,Lay Lian; Loayza,Norman V.; Schmillen,Achim Daniel
  14. Financial Innovation and Additionality : The Power of Economic Analysis and Data Analytics By Abraham,Facundo; Schmukler,Sergio L.; Tessada, José

  1. By: Nicholas Economides (Professor of Economics, NYU Stern School of Business, New York, New York 10012); Ioannis Lianos (President, Hellenic Competition Commission and Professor of Global Competition Law and Public Policy, Faculty of Laws, University College London)
    Abstract: We present a model of a market failure based on a requirement provision by digital platforms in the acquisition of personal information from users of other products/services. We establish the economic harm from the market failure and the requirement using traditional antitrust methodology. Eliminating the requirement and the market failure by creating a functioning market for the sale of personal information would create a functioning market for personal information that would benefit users. Even though market harm is established under the assumption that consumers are perfectly informed about the value of their privacy, we show that when users are not well informed, there can be additional harms to this market failure.
    Keywords: personal information; Internet search; Google; Facebook; digital; privacy; restrictions of competition; exploitation; market failure; hold up; merger; abuse of a dominant position; unfair commercial practices; excessive data extraction; self-determination; behavioral manipulation; remedies; portability; opt-out.
    JEL: K21 L1 L12 L4 L41 L5 L86 L88
    Date: 2020–01
  2. By: Rösner, Anja; Haucap, Justus; Heimeshoff, Ulrich
    Abstract: We investigate the effect of an EU-wide consumer protection regulation on consumer trust as well as consumer behavior. The Unfair Commercial Practice Directive (UCPD) was implemented by EU member states between 2007 and 2010. We utilize data from the Special and Flash Eurobarometer for the years between 2006 and 2014 and experts' evaluation on consumer protection levels before the introduction of the regulation. This rich data set allows us to apply a difference-in-difference estimator with multiple time periods. We find a significant relationship between the introduction of the UCPD and consumer trust and cross-border purchases for countries with a low consumer protection level before the introduction of the UCPD. The relationship increases over time and stays then relatively constant.
    Keywords: Consumer Protection,UCPD,B2C,E-Commerce,Consumer Trust,Cross-border Purchase
    JEL: D18 K20 L50 L51
    Date: 2020
  3. By: Klus, Milan Frederik; Müller, Julia
    Abstract: Executives are increasingly facing various challenges associated with digitalisation, ranging from digitally mapping their existing business processes to fundamentally changing their business models. In this context, however, few studies have investigated which skills and traits executives need to successfully master digitalisation-related challenges. While some contributions suggest and systematise leadership skills, we go one step further and conduct a survey to investigate the connection between selected skills and executives' abilities to cope with specific challenges. Based on our results, executives that are well equipped to cope with these challenges tend to think and act entrepreneurially, have strong (self-)organisation and IT skills, a profound ability to motivate others, and a high degree of flexibility, commitment, and creativity. Surprisingly, being a strong team player does not seem to be necessarily advantageous. Moreover, many executives desire more calmness, which suggests that being able to decelerate is important in the digital age.
    JEL: M12 M15 M50 O33
    Date: 2019
  4. By: Jörg Claussen; Christian Peukert; Ananya Sen
    Abstract: We run a field experiment to quantify the economic returns to data and informational ex-ternalities associated with algorithmic recommendation relative to human curation in the context of online news. Our results show that personalized recommendation can outperform human curation in terms of user engagement, though this crucially depends on the amount of personal data. Limited individual data or breaking news leads the editor to outperform the algorithm. Additional data helps algorithmic performance but diminishing economic returns set in rapidly. Investigating informational externalities highlights that personalized recommendation reduces consumption diversity. Moreover, users associated with lower levels of digital literacy and more extreme political views engage more with algorithmic recommendations.
    Keywords: field experiment, economics of AI, returns to data, filter bubbles
    JEL: L82 L51 J24
    Date: 2019
  5. By: Myeonwan Kim; James Ashwell; Nicole Johnston; Sebastian Tansil
    Abstract: In March 2018 a report entitled “An Infrastructure Index for Remote Indigenous Communities” was delivered to INAC. The report included discussion of the rationale and methodology for the index and estimates for the index for 236 remote communities (200 Indigenous and 36 nonIndigenous) with breakdowns by jurisdiction (province/territory) and heritage group. The Index itself consisted of seven components of infrastructure (broadband, transportation, energy, health, education, water and housing) and 15 separate indicators. A database of over 3,450 data points was constructed with publically available information. One weakness identified with the index was the broadband indicator, which focused on the availability of broadband, not its quality in remote Indigenous communities. INAC (now CIRNAC) was interested in addressing this weakness and commissioned the Centre for the Study of Living Standards (CSLS) to develop a new broadband indicator. In this report, we develop a new index for broadband connectivity, incorporating two key factors that determine the quality of broadband services in Indigenous communities in remote regions: speed and capacity.
    Keywords: Infrastructure, Broadband connectivity, Remote communities, Indigenous communities, Canada
    JEL: H54 R58 H72
    Date: 2019–08
  6. By: Hitoshi Matsushima (University of Tokyo)
    Abstract: This study clarifies that blockchain cannot replace the strategic value of trusted intermediaries, despite sufficient technological advancement for its implementation. Given the progress expected in the future, this study assumes that blockchain can implement various commitment devices for communication explored in the information design literature, without disclosing their details to anonymous record keepers. By considering revelation incentives explicitly, we show that substituting the verification task of players’ pre-owned private signals with a trusted intermediary can reduce transaction costs in liability, which cannot be achieved non-judicially by blockchain. Hence, trusted intermediaries play a significant role in executing information design through blockchain.
    Keywords: Blockchain, Information Design, Verification, Intermediary, Limited Liability
    JEL: D44 D82 D86 G20 L86
    Date: 2019–07
  7. By: Massimo Motta; Martin Peitz
    Abstract: Big tech mergers are frequently occurring events. What are the competitive effects of these mergers? With the help of a simple model we identify the acquisition of potential competitors as a pressing issue for merger control in digital industries. We also sketch a few novel theories of harm of horizontal and conglomerate mergers that are potentially relevant in digital industries. Finally, we draw some policy recommendations on how to deal with mergers in such industries.
    Keywords: merger policy, digital markets, potential competition, conglomerate mergers
    JEL: L41 L13 K21
    Date: 2020–01
  8. By: Arpana Tripathi; Sapna Verma
    Abstract: In the modern era of education, the latest technology used in teaching and learning process is Smart class. Information communication technology is a new, resourceful and highly effectual in education. In this process of teaching happens through various digital instructional tools, animated videos, modules online videos and latest software has made the students in love with to improve their performance. This paper highlights on the much growing digitalized class and software used in smart class. The use of this modern technology has its advantages and disadvantages but then also it is welcomed by the pupils in a vast manner Key Words: Smart class, Software, ECCE Policy
    Date: 2019–12
  9. By: Mohajan, Haradhan
    Abstract: The American Industrial Revolution (IR) is considered as the Second IR (IR2) which creates rural to an urban society. Great inventions during the IR2 are electricity, internal combustion engine, the chemical industries, petroleum and other chemicals, alloys, electrical communication technologies, and running water with indoor plumbing. The development of steel and oil refining has affected US industry. Transportation and communications technology has changed business practices and daily life style of many people. Inventions of medicine and medical instruments have reduced the rates of infections and death from many diseases and public health has improved greatly. Global political, economic, and social systems have widely changed very rapidly. Between 1820 and 1920 about 33 million people, mainly labors, have migrated to the USA for seeking greater economic opportunity and cities become overcrowded. Low wage, dangerous working conditions, long working hours, child labor, discrimination in wages, etc. have created labor dissatisfaction. Moreover jobless and wage cut of labors railroad strike has broke out in many cities of the USA. An attempt has taken in this study to discuss aspects of the IR2.
    Keywords: Second Industrial Revolution, innovation and invention, electricity, steel, oil and petroleum, economic development, railroad strike
    JEL: B3 L5
    Date: 2019–10–21
  10. By: Simplice A. Asongu (Yaoundé/Cameroon); John Kuada (Aalborg University, Denmark)
    Abstract: Knowledge has emerged as a fundamental driver of economic growth and development by inter alia improving the effectiveness and efficiency of economic projects and boosting the process of finding new avenues of addressing developmental policy syndromes. Recent evidence suggests that Africa is on the threshold of significant and sustainable economic growth if its human and material resources can be effectively mobilised to support the process (Kuada & Mensah, 2017; Asongu & Tchamyou, 2019). Consequently, the World Bank’s Knowledge Economy Framework aims to explore and support the extent to which current policies in African countries affect the knowledge development process (and thereby competitiveness) on the continent. A knowledge economy is an economy in which economic prosperity largely depends on the accessibility, quality and quantity of information available, instead of the means of production (Asongu, 2017a, 2017b). This themed issue of Contemporary Social Science-‘Building Knowledge Economies in Africa’ - consists of papers that focus on, but are not limited to, the four dimensions of the World Bank’s Knowledge Economy Index. These are: information and communication technology, education, economic incentives and institutional regime, and innovation (Tchamyou, 2017). The themed issue engages with high quality contributions which, taken together, address the drivers towards knowledge-based economies. This introduction provides a context for understanding the importance of building knowledge economies in Africa and summarises the main contributions to the themed issue. The paper ends by advising scholars and policy makers regarding the risks associated with a colonial view of knowledge- notably the importance of proposing knowledge-based policies while avoiding hegemonic paradigms and hierarchical constructs. In summary, the issue consists of a set of theoretically informed, empirically robust, policy-relevant and accessible articles for both specialists and non-specialists.
    Keywords: Knowledge economy; Development; Africa
    JEL: O10 O30 O38 O55 O57
    Date: 2020–01
  11. By: van der Windt, Peter Cornelis; Humphreys, Macartan
    Abstract: Poor-quality data about conflict events can hinder humanitarian responses and bias academic research. There is increasing recognition of the role that new information technologies can play in producing more reliable data faster. We piloted a novel data-gathering system in the Democratic Republic of Congo in which villagers in a set of randomly selected communities report on events in real time via short message service. We first describe the data and assess its reliability. We then examine the usefulness of such "crowdseeded" data in two ways. First, we implement a downstream experiment on aid and conflict and find evidence that aid can lead to fewer conflict events. Second, we examine conflict diffusion in Eastern Congo and find evidence that key dynamics operate at very micro levels. Both applications highlight the benefit of collecting conflict data via cell phones in real time.
    Date: 2020–01–14
  12. By: Ioannis Chatziantoniou (Portsmouth Business School); David Gabauer (Johannes Kepler University); Hardik A. Marfatia (Northeastern Illinois University)
    Abstract: This paper explores stock market sectoral connectedness for the emerging market economy of India. We use the time-varying parameter vector autoregressive dynamic connectedness of Antonakakis and Gabauer (2017). Results show that the stock market sectoral connectedness varies across time. Connectedness is strongest among sectors during the 2008 crisis, the double-digit inflation and stock market crash of 2011, national elections of 2014, and the historic demonetization of 2016. In addition, consumers’ spending, industry, finance, and basic materials appear to be net transmitters of shocks. By contrast, information technology, fast moving consumer goods, healthcare, and telecommunications are net receivers of shocks. This paper can help formulate policies aiming at alleviating sectoral imbalances and promoting balanced growth, and also benefit investors with devising optimal portfolio diversification strategies.
    Keywords: Emerging Markets, Sectoral Spillover, Variance Decomposition, Dynamic Connectedness, Stock Market Returns, TVP-VAR
    JEL: C32 C50 G15
    Date: 2020–01–28
  13. By: Chuah,Lay Lian; Loayza,Norman V.; Schmillen,Achim Daniel
    Abstract: Will the revolution in digital and information technologies make us obsolete? Will jobs be lost and never replaced? Will wages drop to intolerable levels? History and economic theory and evidence suggest that in the long term, such fears are misplaced. However, in the short and medium term, dislocation can be severe for certain types of work, places, and populations. In the transition period, policies are needed to facilitate labor market flexibility and mobility, introduce and strengthen safety nets and social protection, and improve education and training.
    Keywords: Labor Markets,Rural Labor Markets,Armed Conflict,Food Security
    Date: 2018–08–01
  14. By: Abraham,Facundo; Schmukler,Sergio L.; Tessada, José
    Abstract: As public and private financial institutions innovate to expand the range of financial products that households and firms use, questions about the additionality of different services have become central. Additional financial services are those that are not already provided by the private sector and that create value added to the overall economy. To identify and measure the contribution of financial services, precise analytical techniques and data are essential. Measuring additionality is challenging but, to the extent that it can be done, it is helpful to assess the multiple effects of financial innovation on the consumers of financial products, the financial service providers, and the economy.
    Keywords: Governance Diagnostic Capacity Building,Economic Forecasting,Macroeconomic Management,Access to Finance,Conflict and Fragile States,Tertiary Education,Information Technology
    Date: 2019–06–01

This nep-ict issue is ©2020 by Marek Giebel. 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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