Local loop unbundling in the UK does not affect broadband penetration - but it does lead to better service

Under an open access policy, incumbent broadband providers in all EU countries are required to let new market entrants access their networks through bitstream or local loop unbundling (LLU). This type of regulatory provision aims to increase competition among all broadband providers, and is strongly recommended in markets where the prohibitively high cost of setting up a distribution network means that market power is concentrated in the hands of a few players - or even one single player (such as in the case of telecommunications). This analysis uses data from the UK to investigate whether such a policy stimulates market entry and broadband penetration and/or leads to an increase in broadband quality. In contrast to what is commonly believed LLU does not increase internet penetration significantly or sustainably. It does, however, stimulate market entry as well as investments that substantially increase service quality. Thus this open access policy does not contribute to a digital divide in access. Although these results are based solely on experiences in the UK, they do point to the general advantages of infrastructure-based competition (based on LLU) over service-based competition (based on bitstream)

Broadband Internet and Social Capital

We study how the diffusion of broadband Internet affects social capital using two data sets from the UK. Our empirical strategy exploits the fact that broadband access has long depended on customers' position in the voice telecommunication infrastructure that was designed in the 1930s. The actual speed of an Internet connection, in fact, rapidly decays with the distance of the dwelling from the specific node of the network serving its area. Merging unique information about the topology of the voice network with geocoded longitudinal data about individual social capital, we show that access to broadband Internet caused a significant decline in forms of offline interaction and civic engagement. Overall, our results suggest that broadband penetration substantially crowded out several aspects of social capital.Comment: Internet & Society; Economic

Teams or Tournaments? A Field Experiment on Cooperation and Competition among University Students

This paper assesses the effect of two stylized and antithetic non-monetary incentive schemes on students’ effort. We collect data from a field experiment where incentives are exogenously imposed, performance is monitored and individual characteristics are observed. Students are randomly assigned to a tournament scheme that fosters competition between coupled students, a cooperative scheme that promotes information sharing and collaboration between students and a control treatment in which students can neither compete, nor cooperate. In line with theoretical predictions, we find that competition induces higher effort with respect to cooperation and cooperation does not increase effort with respect to the baseline. However, this is true only for men, while women do not seem to react to non-monetary incentives.education, field experiments, incentives, competition, cooperation

Internet and politics: evidence from U.K. local elections and local government policies

We empirically study the effects of broadband internet diffusion on local election outcomes and on local government policies using rich data from the U.K. Our analysis shows that the internet has displaced other media with greater news content (i.e. radio and newspapers), thereby decreasing voter turnout, most notably among less-educated and younger individuals. In turn, we find suggestive evidence that local government expenditures and taxes are lower in areas with greater broadband diffusion, particularly expenditures targeted at less-educated voters. Our findings are consistent with the idea that voters’ information plays a key role in determining electoral participation, government policies, and government size

Essays in behavioral economics

In this work we conduct an experimental analysis on different behavioral models of economic choice. In particular, we analyze the role of overconfidence in shaping the beliefs of economics agents about the future path of their consumption or investment. We discuss the relevance of this bias in expectation formation both from a static and from a dynamic point of view and we analyze the effect of possible interventions aimed to achieve some policy goals. The methodology we follow is both theoretical and empirical. In particular, we make large use of controlled economic field experiments in order to test the predictions of the theoretical models we propose. In the second part of the thesis we discuss the role of cognition and personality in affecting economic preferences and choices. In this way we make a bridge between established psychological research and novel findings in economics. Finally, we conduct a field study on the role of incentives on education. We design different incentive schemes and we test, on randomized groups of students, their effectiveness in improving academic performance

Teams or Tournaments? A Field Experiment on Cooperation and Competition in Academic Achievement

This paper assesses the effect of two stylized and antithetic non-monetary incentive schemes on students’ effort. We collect data from a field experiment where incentives are exogenously imposed, performance is monitored and individual characteristics are observed. Students are randomly assigned to a tournament scheme that fosters competition between coupled students, a cooperative scheme that promotes information sharing and collaboration between students and a control treatment in which students can neither compete, nor cooperate. In line with theoretical predictions, we find that competition induces higher effort with respect to cooperation and cooperation does not increase effort with respect to the baseline. However, this is true only for men, while women do not seem to react to non-monetary incentives

What ever happened to social capital in the internet era?

You are finally at home after a busy day at work. An invitation to join friends watching the latest episode of the Avengers saga at the cinema pops up on your smartphone. You are tired, and you already planned to spend a relaxing night at home, ordering pizza through Deliveroo, listening to your favourite music with Spotify and watching that addictive tv series on Netflix. Why ruin such a wonderful plan by going out with friends? Now, imagine you just moved to a new apartment and did not have the time to install a broadband connection at home. Your friends’ invitation suddenly becomes more attractive. Does the time we spend online displace our offline relationships? Does this possible displacement effect extend to civic engagement and political participation? Is the Internet weakening our social ties making us less connected than before

Broadband internet and social capital

We study the impact of broadband penetration on social capital in the UK. Our empirical strategy exploits a technological feature of the telecommunication infrastructure that generated substantial variation in the quality of Internet access across households. The speed of a domestic connection rapidly decays with the distance of a user’s line from the network’s node serving the area. Merging information on the topology of the network with geocoded longitudinal data about individual social capital from 1997 to 2017, we show that access to fast Internet caused a significant decline in civic and political engagement. Overall, our results suggest that broadband penetration crowded out several dimensions of social capital