nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2020‒09‒21
six papers chosen by
Marek Giebel
Universität Dortmund

  1. Restrictions on Privacy and Exploitation in the Digital Economy: A Market Failure Perspective By Nicholas Economides; Ioannis Lianos
  2. Capital incentive policies in the age of cloud computing: An empirical case study By Andres, Raphaela; DeStefano, Timothy; Niebel, Thomas; Viete, Steffen
  3. Is innovation in ICT valuable for the efficiency of Italian museums? By Calogero Guccio; Marco Ferdinando Martorana; Isidoro Mazza; Giacomo Pignataro; Ilde Rizzo
  4. Access prices indexed to geographical coverage of innovative telecom services By Henriques, David
  5. Teaching assistants, computers and classroom management By Johnson, Helen; Mcnally, Sandra; Rolfe, Heather; Ruiz-Valenzuela, Jenifer; Savage, Robert; Vousden, Janet; Wood, Clare
  6. Digital strategies in education across OECD countries: Exploring education policies on digital technologies By Reyer van der Vlies

  1. By: Nicholas Economides (Professor of Economics, NYU Stern School of Business, New York, New York 10012); Ioannis Lianos (Professor of Global Competition Law and Public Policy, Faculty of Laws, University College London, and Hellenic Competition Commission)
    Abstract: We discuss how the acquisition of private information by default without compensation by digital platforms such as Google and Facebook creates a market failure and can be grounds for antitrust enforcement. To avoid the market failure, the default in the collection of personal information has to be changed by law to “opt-out.” This would allow the creation of a vibrant market for the sale of users’ personal information to digital platforms. Assuming that all parties are perfectly informed, users are better off in this functioning market and digital platforms are worse off compared to the default opt-in. However, just switching to a default opt-in will not restore competition to the but for world because of the immense market power and bargaining power towards an individual user that digital platforms have acquired. Digital platforms can use this power to reduce the compensation that a user would receive for his/her personal information compared to a competitive world. Additionally, it is likely that the digital platforms are much better informed than the user in this market, and can use this information to disadvantage users in the market for personal information.
    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-in; opt-out.
    JEL: K21 L1 L12 L4 L41 L5 L86 L88
    Date: 2020–09
    URL: http://d.repec.org/n?u=RePEc:net:wpaper:2005&r=all
  2. By: Andres, Raphaela; DeStefano, Timothy; Niebel, Thomas; Viete, Steffen
    Abstract: The following paper assesses whether current policy environments are appropriate for the emergence of cloud computing technology. In particular, this research uses firm-level data for Germany and the UK to examine the impact of capital incentive programmes (a common policy present in most OECD countries) on cloud adoption. The design for many of these policies target investments in physical capital while excluding digital services like the cloud. Firms view digital investments and digital services as substitutes, therefore narrowly define dincentive programmes may actually discourage the use of emerging tools like cloud computing, which are found to enable the growth and performance of young entrants. Overall, the results find that while capital incentive policies encourage firm investments in ICT and other forms of capital, they actually reduce the probability of cloud adoption. Policy makers may therefore need to reconsider the design of capital incentive programmes within their jurisdictions.
    Keywords: Cloud Computing,Investment Scheme,ICT Adoption,Technology Diffusion,Policy Evaluation
    JEL: L22 O33
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:20036&r=all
  3. By: Calogero Guccio (Università di Catania); Marco Ferdinando Martorana (Università di Catania); Isidoro Mazza (Università di Catania); Giacomo Pignataro (Università di Catania e Politecnico di Milano); Ilde Rizzo (Università di Catania)
    Abstract: This paper investigates the influence of information and communication technologies (ICT) on the efficiency in attracting visitors of Italian museums. Notwithstanding the extensive literature on museum performance measurement, the analysis of the role of technological innovation is relatively neglected. As a first attempt to fill this lacuna, this study presents a two-stage analysis of a novel sample of Italian state-owned museums built by merging information drawn from different sources. In the first stage, we use Data Envelopment Analysis (DEA) and bootstrapping technique to measure the efficiency of museums. In the second stage, we use a bootstrap truncated regression approach to test the extent to which different forms of ICT affect museum efficiency. We distinguish the ICT investments into in situ and online services, since the former improve the visitors’ experience on site, while the latter can prepare for the visit or, even, be a substitute of the visit. The results reveal that the use of ICT is generally associated with better performances but in situ services shows to play a major role.
    Keywords: museums; ICT, technological innovation, efficiency, Data Envelopment Analysis, bootstrap truncated regression
    JEL: C14 C61 I21 Z1
    Date: 2020–09
    URL: http://d.repec.org/n?u=RePEc:ipu:wpaper:95&r=all
  4. By: Henriques, David
    Abstract: The literature on access prices and investment has suggested that firms under-invest when subject to an access provision obligation combined with a fixed access price per consumer. In this paper, I study an access price per consumer for an innovative service such as super- fast broadband provided by a regulated firm that is a function of its geographical coverage (indexation approach). The indexation approach can enhance economic efficiency beyond what is achieved with a fixed access price under a set of standard assumptions. In particular, it can simultaneously induce the firms to set lower retail prices, lead to wider geographi- cal coverage of innovative services and higher social welfare level compared with a fixed access price. Moreover, in the model, the indexation may be used to achieve approximately the Ramsey outcome, or the first-best coverage level. I address how a regulator can set the access price indexation optimally, based on the coverage cost plus an incentive. I highlight the potential role of indexation as a tool to reduce the need for public subsidies and the associated tax distortions when compared with a fixed access price.
    Keywords: geographic coverage; innovation; investment incentives; price controls; Springer
    JEL: L43 L51 L96
    Date: 2020–08–27
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:106100&r=all
  5. By: Johnson, Helen; Mcnally, Sandra; Rolfe, Heather; Ruiz-Valenzuela, Jenifer; Savage, Robert; Vousden, Janet; Wood, Clare
    Abstract: Many students still leave school without a good grasp of basic literacy, despite the negative implications for future educational and labour market outcomes. We evaluate how resources may be used within classrooms to reinforce the teaching of literacy. Specifically, teaching assistants are trained to deliver a tightly structured package of materials to groups of young children aged 5-6. The training is randomly allocated between and within schools. Within schools, teaching assistants are randomly assigned to receive training in either computer-aided instruction or the paper equivalent. Both interventions have a short-term impact on children’s reading scores, although the effect is bigger for the paper intervention and more enduring in the subsequent year. This paper shows how teaching assistants can be used to better effect within schools, and at a low cost.
    Keywords: literacy; ICT; teaching assistants; Centre for Economic Performance; ES/S000097/1
    JEL: I21
    Date: 2019–06–01
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:100136&r=all
  6. By: Reyer van der Vlies
    Abstract: This working paper identifies OECD countries’ interests in digital innovation in education by analysing their policy papers on digital education. Many OECD countries have adopted a specific strategy on digital education, or integrated the topic in a generic strategy on digital innovation as such. The ideas that are expressed in the strategies differ greatly; some are work in progress, others contain bold envisions of the future. There is a high awareness among OECD countries of the benefits of digitalisation, and the role of government to support digital innovation in education. This paper covers and documents countries’ policy focus before the 2020 coronavirus crisis.
    Date: 2020–09–16
    URL: http://d.repec.org/n?u=RePEc:oec:eduaab:226-en&r=all

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