Measuring digitization: A growth and welfare multiplier

Digitization encapsulates the social transformation triggered by the mass adoption of digital technologies that generate, process and transfer information. The digitization index introduces a global measure of national performance reflecting ubiquity, affordability, reliability, speed, usability and skills. Output and welfare rise with the index while manifesting increasing returns to scale some implications for ICT public policy are drawn from these findings.     

COMPETITION OR PREDATION? CONSUMER COORDINATION,STRATEGIC PRICING AND PRICE FLOORS IN NETWORK MARKETS*

Although network effects can make predation more likely to succeed, we find that the leading anti‐predation rules may lower or raise efficiency and consumer welfare in network markets. We find that: (a) the extensive debates about the ‘correct’ measure of cost on which to base price floors are unlikely to be productive; (b) the Ordover‐Willig rule that is widely thought to be correct in theory but difficult to apply in practice is, in fact, incorrect in theory; and (c) efficient price floors would have to depend on consumer expectations and coordination processes that are unlikely to be observable in practice.     

The Impact of Familiarity and Perceived Trustworthiness and Influence on Donations to Nonprofits: An Unaided Recall Study

What affects donations? Is it all in “the ask,” or does brand image matter? In the nonprofit brands literature perceived trustworthiness and influence of the organization are important factors that increase constituents’ willingness to support an organization. We examined the association between a nonprofit organization’s familiarity, trustworthiness, and influence and the propensity of donations it receives. To this end, we used a questionnaire on attitudes toward nonprofit organizations and unaided recall of nonprofit organizations collected from a nationally representative sample. The attitudes data revealed that perceptions of nonprofits’ effectiveness and trustworthiness in Israel are not particularly positive. A multivariate fractional polynomial regression on the unaided recall results shows that while familiarity and perceived effectiveness are positively associated with the propensity of donations to nonprofit organizations, trustworthiness is not. We explain this surprising result by changes in Israeli social policy, political culture, and trust in institutions. We suggest different efforts that organizations can make to enhance their brand image and consequently increase donations.     

Multisided Platforms,Big Data,and a Little Antitrust Policy

Review of Industrial Organization - Commentators on both the right and the left ends of the political spectrum have called for new and more forceful approaches to antitrust enforcement with respect...     

Platform economics and antitrust enforcement: A little knowledge is a dangerous thing

Although the economics of multisided platforms has developed important insights for antitrust policy, there are critical respects in which the body of academic knowledge falls short of providing useful advice to enforcement agencies and the courts. Indeed, there is a substantial risk that recent scholarship will be misapplied to the detriment of sound antitrust policy, as evidenced by the US Supreme Court's recent decision in American Express. In this note, I identify several areas in which economics research could potentially make significant contributions to the practical antitrust treatment of platforms.     

What does IT Take for Congress to Enact Good Policies? an Analysis of Roll Call Voting in the US Congress

We study the conditions under which members of Congress incorporate policy‐specific considerations in their decisions. To do this, we estimate a model that accounts for the influence of private information about legislation quality on voting patterns in the House and Senate. We find that minority party members are more likely to evaluate proposals on their merits than majority members, but institutional and electoral considerations significantly attenuate these partisan differences. In particular, seniority, electoral safety, and constituents' political knowledge have a balancing effect on partisan predispositions to rely on policy‐relevant information, making minority (majority) members less (more) likely to vote informatively.     

Provider competition and healthcare quality: More bang for the buck?

Public and private entities around the world are trying to induce the provision of higher-quality health care by adopting institutional arrangements intended to promote competition among care providers. I selectively survey and supplement the literature to show that an increase in competition—modeled either as a larger number of care providers or greater precision of signals available to consumers regarding provider quality—may result in lower equilibrium quality, holding prices fixed. These findings are an indication that considerable opportunities exist for industrial organization theorists to contribute to our understanding of healthcare markets.     

The impact of broadband on jobs and the German economy

This study calculates the impact of investment in broadband technology on German employment and economic output. Two sequential investment scenarios are analysed: the first one reflects the government’s National Broadband Strategy that extends through 2014, and the second covers the ultra-broadband evolution from 2015 to 2020. The authors conclude that the required investment of close to 36 billion euros is justifi ed by the substantial benefi ts that would be generated in terms of both additional jobs and GDP growth.     

Virtual Instant Global Entrepreneurship

International entrepreneurship must be hard, because so few firms attempt it. If true, perhaps it is hard because it requires knowledge about people and places far away. It is hard because it requires mastering processes to handle business across borders. And it is hard because it requires trust in the processes and eventually in the customers elsewhere. These three elements, knowledge, mastery and trust in international business are essential to the success of international entrepreneurship for SMEs.