Information Economics and Policy最新文献

Platforms often compete over non-price strategies such as the exclusive distribution of products. But these strategies are not always welfare-enhancing. Using rich data on audiovisuals distributed on platforms in Brazil, we find that non-exclusive distribution and availability of titles across platforms is more effective in deterring online piracy than in the single-homing case. Moreover, for the subset of domestic movies, it induces higher average investment in the quality of new titles upstream. We discuss options of copyright and competition policies in the light of these findings.

Millions of citizens and firms lack access to high speed internet, even though governments pledged to spend huge sums of money to subsidize internet networks. In this paper we review some systematic flaws of present policies and outline a promising alternative. We propose that governments should treat the broadband infrastructure as a public responsibility and set up public-private partnerships that deploy, fund, and temporarily operate the broadband in exchange for collecting service fees and, if necessary, subsidies. Least-present-value-of-revenue auctions can be used to award all concessions, not only those that are expected to require subsidies, and concessions should revert to public ownership and be re-auctioned if the promised present value of revenue has been reached through collection of service fees. This procurement method is easy to implement, efficient, and immune to strategic manipulations and renegotiations.

We study the competitive effects of a vertical merger in a digital industry where an integrated incumbent (closed ecosystem) competes with an open ecosystem formed by an upstream supplier (ecosystem gatekeeper) and two downstream retailers selling differentiated products. Absent innovation, the incumbent sells a superior product compared to the rivals’ ones. Yet, the gatekeeper of the open ecosystem can fill up this gap by engaging in product innovation. We investigate the impact of vertical integration on the gatekeeper’s incentives to foreclose its non-integrated downstream unit and innovate its ecosystem to compete head-to-head with the incumbent. The vertically integrated gatekeeper raises the costs of the unintegrated competitor to relax intra-ecosystem competition but does not fully foreclose it as that would cause fiercer inter-ecosystem competition. Moreover, vertical integration enhances innovation within the open ecosystem, enabling its participants to catch up with the incumbent. Overall, vertical integration may benefit consumers even when it softens intra-ecosystem competition.

India has risen to prominence as a global supplier of information technology (IT). However, the extent to which IT benefits Indian manufacturing is less well known. We assess the effects of IT capital on firm's growth from 1998 to 2016. We make two significant contributions: (i) we make comparisons between different periods, high-IT intensive and low-IT intensive sectors and 14 manufacturing industries at a disaggregated-level, (ii) to overcome the problems of simultaneity in production function estimation, we employ a recently developed semi-parametric technique. Our findings indicate that (i) IT as a production input contributes significantly to firm's output, yet the estimated effects vary significantly by time-period and industry, (ii) the impact of IT is maximum between 2000 and 2009, and then begins to weaken between 2010 and 2016, (iii) IT elasticities in high- and low-technology sectors appear to be converging, particularly between 2010 and 2016.

This paper investigates how privacy regulation affects the structure of online markets. We empirically analyse the effects of the 2009 ePrivacy Directive in Europe on firm revenues. Our results indicate that, if any, only large firms were weakly negatively affected by the implementation of the Directive. We also provide a simple theoretical model predicting an avenue how privacy regulation may predominantly influence the revenues and profits of larger firms, even if - as some of our evidence indicates - these larger firms may actually offer more privacy than smaller rivals. Our results suggest that while privacy regulation is not without costs to businesses, it need not distort competition to the favour of larger firms.

The development of online social media has raised concerns about how individuals are over-exposed to partisan news. However, social media are only a part of the daily media diet of an average consumer (Allcott and Gentzkow, 2017; Allen et al., 2020). The aim of this paper is therefore to examine partisan news exposure with respect to the entire media diet. We develop a partisan selective exposure index that indicates the over-representation of partisan political opinions in individual daily news consumption. Our analysis of data from a survey of 4,000 people in France shows that on average, partisan exposure is low when social media are excluded. Our estimations also indicate that social media consumption increases selective exposure to partisan content. While the youngest and the less educated appear to be less exposed to partisan content in the absence of social media, our results suggest that this is no longer the case when social media are included in the news diet. Finally, we show that the more people declare extreme (right- or left-wing) political views, the more they are over-exposed to like-minded content.

This paper investigates the influence of broadband internet availability in the occurrence of events of civil unrest. Using collected data on 2011’s Occupy Movement in the U.S., we find that each new Internet Service Provider (which is associated to an increase in broadband penetration) accounts for an increase between 1 and 3 p.p. in the probability of observing protests in a given location. Results are consistent when analyzing county-level data for the contiguous U.S., for each different U.S. region separately (Northeast, Midwest, South and West), and when analyzing city-level data for California.

This paper investigates the effects of “Big Tech” platform acquisitions on venture capital (VC) funding for start-ups. We analyze 32,367 venture capital deals between 2010 and 2020, and 392 tech start-up acquisitions by Google, Facebook, Amazon, Apple, and Microsoft. Results obtained with fixed effects panel and differences-in-differences estimators reveal a positive, statistically significant, average effect of Big Tech start-up acquisitions on worldwide, venture capital activity. Positive effects were also found for the United States and Europe. However, the findings suggest that the effects are transient and fade away after several quarters. Because venture capitalists fund start-ups to enable entrepreneurial innovation, this approach also informs our understanding of the repercussions of these acquisitions on the start-up innovation ecosystem. The large number of observations over an extended period unlocks insights into historical patterns that are relevant for the design of digital platform policies.

Does digitalization by firms spur participation in Global Value Chains (GVCs)? Rapid strides in information and communication technology (ICT) through cost-effective and reliable telecommunications have facilitated multinational firms to outsource complex production activities across borders over the years. While the rise of GVCs to prominence has coincided with the ICT revolution, there is very little systematic empirical evidence at the firm-level documenting the nexus between digitalization of firms and their participation in GVCs. By using rich firm-level data for a sample of 24,839 firms across 52 countries spanning the period 2006–2018, we empirically test the importance of digitalization in deepening GVC participation. After correcting for potential biases arising from self-selection and reverse causality, our empirical analysis shows that digitalization by firms positively influences GVC deepening. Our results are quite robust to various measures of GVCs and digitalization. Further, we also document how digitalization boosts GVC integration of firms that are financially constrained.

During the COVID-19 sanitary crisis, many exams were hastily moved to online mode. This revived a much needed debate over the privacy issues associated with online proctoring of exams, while the validity and fairness of unproctored exams were increasingly questioned. With a randomized control trial, we estimate the effectiveness of prior warnings as a means of discouraging academic dishonesty in exams. We use original, non-intrusive technologies to surreptitiously identify cheating in a series of unproctored assignments and send a targeted warning to half of the students who were identified as cheaters. We then compare their cheating behavior on the final exam with the behavior of the group of unwarned cheaters. The warning proves effective but does not completely eliminate cheating, as some students’ cheating strategies become more sophisticated following issuance of the warnings. We conclude that switching traditional exams to online mode should be accompanied by proctoring. When proctoring is not possible, credible and effective anti-cheating technologies should be deployed together with adequate warnings.