nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2017‒10‒22
four papers chosen by
Walter Frisch
Universität Wien

  1. Broadband Internet, Digital Temptations, and Sleep By Francesco C. Billari; Osea Giuntella; Luca Stella
  2. Broadband Internet, Digital Temptations, and Sleep By Billari, Francesco C.; Giuntella, Osea; Stella, Luca
  3. Internet and Politics: Evidence from U.K. Local Elections and Local Government Policies By Alessandro Gavazza; Mattia Nardotto; Tommaso Valletti
  4. Salience in Retailing: Vertical Restraints on Internet Sales By Magdalena Helfrich; Fabian Herweg

  1. By: Francesco C. Billari; Osea Giuntella; Luca Stella
    Abstract: There is a growing concern that the widespread use of computers, mobile phones and other digital devices before bedtime disrupts our sleep with detrimental effects on our health and cognitive performance. High-speed Internet promotes the use of electronic devices, video games and Internet addiction (e.g., online games and cyberloafing). Exposure to artificial light from tablets and PCs can alterate individuals’ sleep patterns. However, there is little empirical evidence on the causal relationship between technology use near bedtime and sleep. This paper studies the causal effects of access to high-speed Internet on sleep. We first show that playing video games, using PC or smartphones, watching TV or movies are correlated with shorter sleep duration. Second, we exploit historical differences in pre-existing telephone infrastructure that affected the deployment of high-speed Internet across Germany (see Falck et al., 2014) to identify a source of plausibly exogenous variation in access to Broadband. Using this instrumental variable strategy, we find that DSL access reduces sleep duration and sleep satisfaction.
    Keywords: Internet, Sleep Duration, Time use
    JEL: I1 J22
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp934&r=ict
  2. By: Billari, Francesco C. (Bocconi University); Giuntella, Osea (University of Pittsburgh); Stella, Luca (Bocconi University)
    Abstract: There is a growing concern that the widespread use of computers, mobile phones and other digital devices before bedtime disrupts our sleep with detrimental effects on our health and cognitive performance. High-speed Internet promotes the use of electronic devices, video games and Internet addiction (e.g., online games and cyberloafing). Exposure to artificial light from tablets and PCs can alterate individuals' sleep patterns. However, there is little empirical evidence on the causal relationship between technology use near bedtime and sleep. This paper studies the causal effects of access to high-speed Internet on sleep. We first show that playing video games, using PC or smartphones, watching TV or movies are correlated with shorter sleep duration. Second, we exploit historical differences in pre-existing telephone infrastructure that affected the deployment of high-speed Internet across Germany (see Falck et al., 2014) to identify a source of plausibly exogenous variation in access to Broadband. Using this instrumental variable strategy, we find that DSL access reduces sleep duration and sleep satisfaction.
    Keywords: internet, sleep duration, time use
    JEL: I1 J22
    Date: 2017–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp11050&r=ict
  3. By: Alessandro Gavazza; Mattia Nardotto; Tommaso Valletti
    Abstract: 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 suggests 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.
    Keywords: Internet, newspaper, media, elections, policy
    JEL: D72 C50 L86
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1691&r=ict
  4. By: Magdalena Helfrich; Fabian Herweg
    Abstract: We provide an explanation for a frequently observed vertical restraint in ecommerce, namely that brand manufacturers partially or completely prohibit that retailers distribute their high-quality products over the internet. Our analysis is based on the assumption that a consumer’s purchasing decision is distorted by salient thinking, i.e. by the fact that he overvalues a product attribute - quality or price - that stands out in a particular choice situation. In a highly competitive low-price environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local (physical) retailers is low, price tends to be salient also in the local store, which is unfavorable for the high-quality product and limits the wholesale price a brand manufacturer can charge. If, however, the branded product is not available online, a retailer can charge a significant markup on the high-quality good. As the markup is higher if quality rather than price is salient in the store, this aligns the retailer’s incentives with the brand manufacturer’s interest to make quality the salient attribute and allows the manufacturer to charge a higher wholesale price. We also show that, the weaker are consumers’ preferences for purchasing in the physical store and the stronger their salience bias, the more likely it is that a brand manufacturer wants to restrict online sales. Moreover, we find that a ban on distribution systems that prohibit internet sales increases consumer welfare and total welfare, because it leads to lower prices for final consumers and prevents inefficient online sales.
    Keywords: internet competition, relative thinking, retailing, salience, selective distribution
    JEL: D43 K21 L42
    Date: 2017
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_6615&r=ict

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