1,721,058 research outputs found
Carpe Data: Protecting online privacy with naive users
Full text linkIn this paper, we study the optimal design of incentives to induce a digital platform to limit the extraction of data from users, whose privacy loss is further aggravated by their naive use of the platform. We show that caps on the amount of data collected can induce the optimal data-saving effort by the platform. If the platform's effort is not observable, a menu of data caps should be provided and it entails a higher (lower) loss of privacy for less (more) naive users, relative to the first best. We also show that compensating users for their data can efficiently incentivize effort, but might increase the privacy loss of more naive users
Cooperative Investment, Access, and Uncertainty
No full textThis paper compares the impacts of traditional one–way access obligations and the new regulatory scheme of co-investment on the roll-out of network infrastructures. We show that compulsory access leads to smaller roll-out, first because it reduces the returns from investment, and second because in the presence of uncertainty it provides access seekers with an option whose exercise hurts investors. Co-investment without access obligations leads to risk sharing and eliminates the access option, implying highest network coverage. Allowing for access on top of co-investment actually decreases welfare if the access price is low
Designing grid tariffs in the presence of distributed generation
No full textFirst published online: 21 November 2019In recent years, an increasing number of electricity consumers have decided to become prosumers. Prosumers can introduce both environmental and social benefits, as well as various utility and regulatory challenges. Utilities and regulators need to either update the current compensation systems and tariff structures or to develop new ones to account for the impact imposed on distribution system operators (DSOs) due to a high penetration rate of distributed generators (DGs), including costs related to connecting DG prosumers to the grid. The goal of this paper is to introduce and examine a novel, multi-part tariff structure that accounts for these costs under the net metering mechanism. Our results show that by applying a multi-part tariff for prosumers, which includes a fixed component that reflects recurring grid-connection costs together with a variable component that reflects the net effect on operating cost of distribution networks, it is possible to alleviate the drawbacks of net metering and optimize prosumption.EU's H2020 research and innovation project: PLANET (Planning and operational tools for optimizing energy flows and synergies between energy networks
Speeding Up the Internet: Regulation and Investment in the European Fiber Optic Infrastructure
Full text linkIn this paper, we study how the coexistence of access regulations for legacy (copper) and fiber networks shapes the incentives to invest in fiber-based network infrastructures. To this end, we first develop a theoretical model that extends the existing literature by, among other things, considering alternative firms with proprietary legacy network (e.g., cable operators) and the presence of asymmetric mandated access to networks. In the empirical part, we test the theoretical predictions using a novel panel data from 27 EU member states pertaining to the last decade. Our main finding is that, in line with the theoretical results, stricter access regulations (i.e., a decrease in access price to legacy network and the adoption of fiber regulation) decrease the incumbent operators' fiber investments. The estimated magnitude of these effects is economically significant. On the other hand, cable operators, who are responsible for the largest share of investments in fiber, are not affected by access regulation. Our paper thus provides policy insights for the on-going revision of the EU regulation framework for the electronic communications industry
Artificial intelligence, firms and consumer behavior: A survey
Full text linkThe current advances in Artificial Intelligence (AI) are likely to have profound economic implications and bring about new trade-offs, thereby posing new challenges from a policymaking point of view. What is the impact of these technologies on the labor market and firms? Will algorithms reduce consumers' biases or will they rather originate new ones? How competition will be affected by AI-powered agents? This study is a first attempt to survey the growing literature on the multi-faceted economic effects of the recent technological advances in AI that involve machine learning applications. We first review research on the implications of AI on firms, focusing on its impact on labor market, productivity, skill composition and innovation. Then we examine how AI contributes to shaping consumer behavior and market competition. We conclude by discussing how public policies can deal with the radical changes that AI is already producing and is going to generate in the future for firms and consumers
Investments and Network Competition
No full textThis paper analyzes the impact of two-way access charges on the incentives to invest in networks with different levels of quality. When quality has an impact on all calls initiated by customers (destined both on-net and off-net), we obtain a result of "tacit collusion" even in a symmetric model with two-part pricing. Firms tend to under-invest in quality, and this is exacerbated if they can negotiate reciprocal termination charges above cost. When the quality of off-net calls depends on the interaction between the quality of the two networks, no network has an incentive to jump ahead of its rival by investing more
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