Information Economics and Policy最新文献

We address the need to regulate Internet infrastructure usage to take into account environmental externalities. We model the interactions between an internet service provider and some content providers in settings where the former chooses the network size and the latter influence congestion on the network. We then discuss how different regulatory frameworks (Net Neutrality, Laissez-Faire, Price Regulation) impact both the economic efficiency and the environmental performance. In particular, we highlight that inducing more efficiency effort from the content providers may either improve or worsen the final environmental outcome, and provide some conditions for one case or the other to prevail.

This study reviews the economic benefits analysis conducted in 2014 for the National Broadband Network (NBN), one of Australia's largest ever public infrastructure projects. The review identifies that the NBN's benefits were overstated due to error by an estimated $17–20 billion in 2014 present value terms, an amount sufficient to eliminate the NBN's forecast net economic benefits. To provide an updated view on the benefits of high-speed broadband in 2022, a stated choice experiment is conducted, finding that the WTP has grown since 2014 at an annual real rate of 8.8 percent for download speeds and 11.5 percent for upload speeds. Even at these growth rates, however, the benefits of the NBN remain materially lower than forecast in 2014. Further, the analysis finds high heterogeneity in the household WTP, with smaller and lower-income households reluctant to pay a premium for speeds much faster than 50 Mbps, indicating that the adoption of the fastest available broadband speeds is likely to remain low. The study highlights the potential value of cost-benefit analyses, but also the risks, particularly where they are relied on to justify enduring extensions of government ownership and control. The paper concludes by identifying learnings for policymakers and cost-benefit analysis practitioners seeking to assess and optimize the economic value of public infrastructure investments.

This paper investigates the impact of broadband Internet on the provision of public media in a large developing country. We use new panel data on public broadcasting at the province level from 2005 to 2017 and a control function approach exploiting variation in China's centralized roll-out of digital infrastructure. We find that rising broadband penetration has substantial negative impacts on the quantity of public media provision—including news, public-service programs, and entertainment—in China's local radio and television. Except for news, these effects are driven by changes in both the extensive margin (i.e., fewer channels) and the intensive margin (i.e., less broadcasting per channel). While industry ad revenues decrease significantly, ad intensity and volume per channel increase with higher broadband penetration rates. Lastly, we find that broadband Internet attracts young, educated, and urban viewers away from television but has no effect on the elderly, the less educated, and those with low-paying jobs.

The ability to make accurate predictions relating to consumer preferences is a key factor of a digital firm's success. Examples include targeted advertisements and, more broadly, business models relying on capturing consumers' attention. The prediction technologies used to learn consumer preferences rely on consumer generated data. Despite the importance of data-driven technologies, there is a lack of knowledge about the precise role that data-scale plays for prediction accuracy. From a policy perspective, a better understanding about the role of data is needed to assess the risks that “big data” might pose for competition. This article highlights potential complementarities between different data dimensions in algorithmic learning. We analyze our hypothesis using search engine data from Yahoo! and provide evidence that more data in the within-user dimension enhances the efficiency of algorithmic learning in the across-user dimension. Our findings suggest that ignoring these complementarities might lead to underestimating scale advantages from data.

We connect various streams of academic literature to analyze how alternative competition and regulatory policies may affect the development of digital financial services, and particularly of mobile payments. Our main objective is to highlight the extent to which existing models, often coming from related industries (such as telecom, payments, and banking) can be applied to study the effects of mobile money interoperability. We focus on four dimensions of interoperability. First, we consider mobile network interoperability (whether clients of one telecom can access another telecom's payment services) in connection with the IO literature on tying. Second, we discuss platform level interoperability (the ability to send money off-network) in light of the literature on compatibility. We also build on the behavioral IO literature to suggest how the effects of interoperability may be very heterogeneous across various types of firms and consumers, or even backfire. Third, we consider interoperability in the cash-in-cash-out agent network, in light of the literature on co-investment in network industries, and of more specific studies on ATMs' interoperability. Fourth, we discuss how the literature in banking and on data ownership can be used to understand interoperability of data. We conclude with some broader remarks on policy implications and on possible directions for future research.

Based on the technology choice model proposed by Bustos (2011) and the infrastructure spillover model developed by Dugga (1999), this paper aims to explore the multifaceted effects of network infrastructure construction on both radical and incremental enterprise innovation, while considering the micro perspective of enterprise and industry heterogeneity. The findings of this study uncover the following significant insights: (1) The implementation of network infrastructure construction exerts a substantial positive impact on both radical and incremental innovation within enterprises, affirming its crucial role in fostering innovation capabilities; (2) In the context of firm heterogeneity, the impact of network infrastructure construction on fostering radical and incremental innovation is particularly pronounced among medium-sized and large-scale enterprises, as well as state-owned enterprises; (3) Network infrastructure construction stimulates radical innovation primarily among local enterprises, whereas export-oriented enterprises tend to benefit more from incremental innovation; (4) When considering industry heterogeneity, the analysis demonstrates that network infrastructure construction fosters radical innovation in industries characterized by high concentration, intense competition, and advanced technology. On the other hand, in industries with low concentration and limited competition, network infrastructure construction tends to facilitate incremental innovation within enterprises. (5) Moreover, the study finds that the impact of network infrastructure construction on enterprise innovation is mediated by talent structure and financing constraints. These factors serve as crucial conduits through which network infrastructure construction facilitates both radical and incremental innovation. Furthermore, the paper acknowledges that the digital transformation of enterprises partially regulates these channels. Overall, this research offers valuable insights for enterprises in developing countries aiming to strengthen various forms of innovation in the digital era.

Pay-for-delay (reverse payments) settlements and patent expansion practices (PEP), such as preemptive patenting, product hopping and evergreening, have been criticized for their potential anticompetitive effects. This paper shows that reverse payments and PEP are strategic substitutes and, when the information over the patents’ strength is asymmetric and patents’ strength is endogenous, a ban on reverse payments may reduce consumer surplus. This effect is stronger the more generic competition reduces industry profits. When the cost of using PEP is sufficiently high, a ban on reverse payments is optimal, otherwise it is optimal to allow reverse payments at the minimal level consistent with the originator not engaging in PEP. Results are qualitatively robust to allowing PEP to increase patent quality and consumer surplus.

Internet piracy has been repeatedly shown to displace the authorised consumption of digital content. However, fewer studies tried to identify a viable solution and even less tried to convert the ‘pirates’ into paying consumers. We conducted a three-wave panel survey among comic book readers, asking about their consumption from various sources. After each wave, a random subsample was provided with prizes in the form of digital comic books from a legal provider. We analyse the effects of prizes on further consumption behaviour. The first prizing scheme incentivised setting up an account, installing a reader app and familiarising oneself with the catalogue of the dominant digital seller of comics. The second scheme aimed at hooking consumers on particular comic book series. However, we only find small evidence of a change in the consumption patterns or the willingness to pay for digital formats. We suggest that for the case of comic books, the prices of lower-valued digital copies might deter purchase. Furthermore, we discuss the use of similar research design for other creative content.

This paper examines how an incumbent firm's data investment decisions can impact market structure and competition. In markets with sufficiently low entry costs, using exclusive data for personalized pricing (PP) does not raise any barrier to entry. However, in markets with intermediate entry costs, the risk of competition and consumer harm is significant. Policy intervention is needed to foster competition. The effectiveness of an information-sharing policy depends on whether the incumbent anticipates it. Mandatory information sharing can only promote entry in markets with intermediate to high entry costs if the incumbent does not foresee its imposition. If the incumbent foresees this policy, it will strategically reduce its data acquisition to deter entry, by serving fewer consumers in the early period. This will cause significant harm to consumers and overall welfare. In markets with sufficiently low intermediate entry costs, information-sharing obligations can effectively foster competition and benefit consumers, regardless of the incumbent's anticipation. A ban on price personalization practices could be a better policy option to promote competition, especially in markets with high entry costs or where mandatory information sharing is not effective due to the incumbent strategic behavior.

The paper investigates welfare effects of targeted advertising in a duopoly. To this end, a game-theoretical model is proposed in which firms can make costly investments in their targeting technology. It can be shown that ex ante identical firms use different technologies in every pure-strategy equilibrium of the technology game. If firms target the same group of consumers, the low-technology firm could increase overall welfare by using a better technology. However, this leads to lower industry profits due to tougher competition among firms.