85,931 research outputs found
Economic Experiments and Neutrality in Internet Access
Economic experiments yield lessons to firms that can be acquired only through market experience. Economic experiments cannot take place in a laboratory; scientists, engineers, or marketing executives cannot distill equivalent lessons from simply building a prototype or interviewing potential customers and vendors. The historical record illustrates that economic experiments were important for value creation in Internet access markets. In general, industry-wide returns from economic experiments exceed private returns, with several important exceptions. Those conclusions motivate an inquiry into whether regulatory policy can play a role in fostering the creation of value. The net neutrality debate is reinterpreted through this lens. A three part test is proposed for encouraging economic experiments from both broadband carriers and providers of complementary services.
Moving from Data-Constrained to Data-Enabled Research: Experiences and Challenges in Collecting, Validating and Analyzing Large-Scale e-Commerce Data
Widespread e-commerce activity on the Internet has led to new opportunities
to collect vast amounts of micro-level market and nonmarket data. In this paper
we share our experiences in collecting, validating, storing and analyzing large
Internet-based data sets in the area of online auctions, music file sharing and
online retailer pricing. We demonstrate how such data can advance knowledge by
facilitating sharper and more extensive tests of existing theories and by
offering observational underpinnings for the development of new theories. Just
as experimental economics pushed the frontiers of economic thought by enabling
the testing of numerous theories of economic behavior in the environment of a
controlled laboratory, we believe that observing, often over extended periods
of time, real-world agents participating in market and nonmarket activity on
the Internet can lead us to develop and test a variety of new theories.
Internet data gathering is not controlled experimentation. We cannot randomly
assign participants to treatments or determine event orderings. Internet data
gathering does offer potentially large data sets with repeated observation of
individual choices and action. In addition, the automated data collection holds
promise for greatly reduced cost per observation. Our methods rely on
technological advances in automated data collection agents. Significant
challenges remain in developing appropriate sampling techniques integrating
data from heterogeneous sources in a variety of formats, constructing
generalizable processes and understanding legal constraints. Despite these
challenges, the early evidence from those who have harvested and analyzed large
amounts of e-commerce data points toward a significant leap in our ability to
understand the functioning of electronic commerce.Comment: Published at http://dx.doi.org/10.1214/088342306000000231 in the
Statistical Science (http://www.imstat.org/sts/) by the Institute of
Mathematical Statistics (http://www.imstat.org
Inefficiencies in Digital Advertising Markets
Digital advertising markets are growing and attracting increased scrutiny. This article explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking, and ad fraud. Although these topics are not unique to digital advertising, each manifests in unique ways in markets for digital ads. The authors identify relevant findings in the academic literature, recent developments in practice, and promising topics for future research
The Online Laboratory: Conducting Experiments in a Real Labor Market
Online labor markets have great potential as platforms for conducting
experiments, as they provide immediate access to a large and diverse subject
pool and allow researchers to conduct randomized controlled trials. We argue
that online experiments can be just as valid---both internally and
externally---as laboratory and field experiments, while requiring far less
money and time to design and to conduct. In this paper, we first describe the
benefits of conducting experiments in online labor markets; we then use one
such market to replicate three classic experiments and confirm their results.
We confirm that subjects (1) reverse decisions in response to how a
decision-problem is framed, (2) have pro-social preferences (value payoffs to
others positively), and (3) respond to priming by altering their choices. We
also conduct a labor supply field experiment in which we confirm that workers
have upward sloping labor supply curves. In addition to reporting these
results, we discuss the unique threats to validity in an online setting and
propose methods for coping with these threats. We also discuss the external
validity of results from online domains and explain why online results can have
external validity equal to or even better than that of traditional methods,
depending on the research question. We conclude with our views on the potential
role that online experiments can play within the social sciences, and then
recommend software development priorities and best practices
Music in electronic markets: an empirical study
Music plays an important, and sometimes overlooked part in the transformation of communication and distribution channels. With a global market volume exceeding US$40 billion, music is not only one of the primary entertainment goods in its own right. Since music is easily personalized and transmitted, it also permeates many other services across cultural borders, anticipating social and economic trends. This article presents one of the first detailed empirical studies on the impact of internet technologies on a specific industry. Drawing on more than 100 interviews conducted between 1996 and 2000 with multinational and independent music companies in 10 markets, strategies of the major players, current business models, future scenarios and regulatory responses to the online distribution of music files are identified and evaluated. The data suggest that changes in the music industry will indeed be far-reaching, but disintermediation is not the likely outcome
Beyond Infrastructure: Broadband for Development in Remote and Indigenous Regions
Recent telecommunications stimulus projects in the U.S. and Canada were intended to increase availability of broadband through funding infrastructure investments, largely in rural and remote regions. However, true access involves more than availability; it also includes affordability and adoption. This paper presents a framework for analyzing broadband adoption that takes into consideration geographical, economic and cultural environments in indigenous communities. It includes an overview of potential social and economic impacts of broadband in remote areas, using examples from the Alaska study and the Canadian North. It then reports on results of an evaluation of Internet use and potential adoption of broadband in remote indigenous communities of southwest Alaska. Finally, the paper provides a comparative analysis of U.S. and Canadian policies intended to achieve affordable access to broadband for rural users and sustainable business models for rural broadband providers.Ye
Nurturing the Accumulation of Innovations: Lessons from the Internet
The innovations that became the foundation for the Internet originate from two eras that illustrate two distinct models for accumulating innovations over the long haul. The pre-commercial era illustrates the operation of several useful non-market institutional arrangements. It also illustrates a potential drawback to government sponsorship â in this instance, truncation of exploratory activity. The commercial era illustrates a rather different set of lessons. It highlights the extraordinary power of market-oriented and widely distributed investment and adoption, which illustrates the power of market experimentation to foster innovative activity. It also illustrates a few of the conditions necessary to unleash value creation from such accumulated lessons, such as standards development and competition, and nurturing legal and regulatory policies.
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