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Economics of Computing

The study of computing is incomplete without some consideration of the economic factors that influence the associated investment, research and development, access, distribution and social impact. In this section some useful links are provided which cover four key areas:

  • Monopolies and their economic implications
  • Effect of skilled labor supply and demand on the quality of computing products
  • Pricing strategies in the computing domain
  • Differences in access to computing resources and the possible effects thereof

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Some Good General Resources About the Effects of Computing on the Economy

The Internet Economy Indicators
www.connectlive.com/events/interneteconomy/
This is the fourth report measuring the Internet economy commissioned by Cisco Systems and covers the first half of 2000. It shows that the Internet is transforming the economy and the way people work, to an extent that few people would have imagined just a few years ago.

Technology and Economic Growth in the Information Age
www.ncpa.org/bg/bg147/bg147.html
This is an interesting economic forecast published in March 1998 by the National Center for Policy Analysis in the US. It can be used as a comparative study.

Economics of Information Technology
www.sims.berkeley.edu/~hal/Papers/mattioli/mattioli.html
This is an overview of economic phenomena that are important for high-technology industries. Topics covered include personalization of products and prices, versioning, bundling, switching costs, lock-in, economies of scale, network effects, standards, and systems effects.

Are Computers Increasing Productivity? (PDF)
www.crito.uci.edu/itr/publications/pdf/COMPUTERS-BOOSTING-PROD.PDF
This 1999 US study focuses on the economic impacts of IT investment in state governments. It addresses the obstacles of realizing the potential of IT investment.

Computers, Obsolescence, and Productivity (PDF)
www.federalreserve.gov/pubs/feds/2000/200006/200006pap.pdf
This paper, published in February 2000, shows that increased productivity in the computer-producing sector and the effect of investment in computers on the productivity of those who use them together account for the acceleration in U.S. labor productivity.

The Economics of Electronic Commerce (PDF)
www.combinet.net/ecomrept/CHOGMReportR1.PDF
This report, published by the Commonwealth Secretariat in 2000, discusses the growing importance of electronic commerce in trade and the developmental implications of the use of cyberspace for commercial and financial transactions.

National Center For Policy Analysis - Economic Issues and Productivity
www.ncpa.org/iss/eco/i_productivity.html
This web site has many great articles about productivity and the effect of technology on the economy.

Computerworld.com
www.computerworld.com/news/
This US-based computer electronic newspaper is a good source for current news commentary.

ComputerWeekly.com
www.computerweekly.co.uk
This UK-based computer electronic newspaper is a good source for current news commentary.

Center for Research in Electronic Commerce, University of Texas
crec.mccombs.utexas.edu/
This research center describes as: “CREC, at the heart of the Silicon Hills of Austin, is today’s leading research center in electronic commerce, digital economy and information technology, in close collaboration with industry and business leaders.” This site contains a range of reports and other resources.

Monopolies in the Information Age

National Center for Policy Analysis – Antitrust
www.ncpa.org/iss/ant/
This contains many articles about anti-trust issues.

The Danger of Corporate Monopolies
www.cse.stanford.edu/classes/cs201/projects-95-96/corporate-monopolies
Monopolies, by definition, strangle competition. How does one quantify the harms of a software monopoly, whose market dominance allows for valuable standardization, but whose power inflates the price to consumers and prevents the birth of higher quality competitors? This project tackles these questions and other issues surrounding the advent of the computer corporate monopoly.

Articles About Microsoft
dmoz.org/Society/Issues/Business/Allegedly_Unethical_Firms/Microsoft/
This page from the Open Directory Project provides a broad range of concerns about the actions of Microsoft.

Government and Monopolies: A Libertarian View
fare.tunes.org/liberty/microsoft_monopoly.html
This article takes a radical libertarian stance about Microsoft and government, and – more generally – about monopolies. The authors explain how the original “evil” behind Microsoft’s monopoly is government intervention in the form of intellectual property privileges, and how any solution should begin by ending these privileges.

The Supply and Demand of Skilled Workers in the IT Industry

The Supply of Information Technology Workers in the United States
www.cra.org/reports/wits/exec_summary.html
This study was published by the Computer Research Association in 2000. The purpose of the study was to improve understanding of the supply of and demand for information technology (IT) workers in the United States, and the surrounding contextual issues.

The E-Economy in Europe: Its Challenges for Education and Skills (PDF)
europa.eu.int/comm/enterprise/events/e-economy/doc/skills_paper.pdf
An overview of the skills shortage in Europe in 2001.

Information Technology Landscape in Nations
www.american.edu/academic.depts/ksb/mogit/country.html
This site is a database of knowledge about information and communication technologies in various nations.

Pricing Strategies in the Computer Domain

Pricing Strategies for Digital Information Goods and Online Service on the Internet
www.mba.ntu.edu.tw/~jtchiang/StrategyEC/eec/report1/report1.htm
This paper discusses a pricing model for both suppliers and customers of firms that offer digital products over the Internet.

Pricing Strategies
www.euro-share.com/pricing.asp
An article about software pricing by Jeff Camino or North Star Solutions published in 2000.

High Technology Industries and Market Structure
www.sims.berkeley.edu/~hal/Papers/structure/
This is a 2001 review of various economic phenomenon that are important in high-technology industries, such as personalization of products and pricing, versioning, bundling, switching costs, lock-in, economics of scale, network effects, complements and computer-mediated contracts.

Self-Selection Strategies for Information Goods
www.firstmonday.dk/issues/issue7_3/dedeke/
This 2002 paper describes the basics concepts of first-degree, second- and third-degree price discrimination.

Differences in Access to Computing Resources and Possible Resulting Effects

New Connections, Old Exclusions: Ethnic Minorities in Ireland’s Information Society (Text)
www.lse.ac.uk/collections/EMTEL/Conference/papers/Ugba.doc
This paper, from the 2003 EMTEL conference, argues that a new information economy and network society has emerged in Ireland and that access to ICT is critical for the inclusion of the country’s marginalized immigrant and ethnic minority groups in this new society.

Bridging Cultural and Digital Divides: Signifying Everyday Life, Cultural Diversity and Participation in the On-line Community Video Nation (PDF)
www.lse.ac.uk/collections/EMTEL/Conference/papers/carpentier.pdf
This paper, from the 2003 EMTEL conference, considers the digital divide from a broad scope, focusing on the abilities of ICT to stimulate access, interaction and participation.

Digital Opportunity Channel
www.digitalopportunity.org/guides/basics/
This is a collection of links to organizations and groups active in trying to overcome this digital divide, and their introduction to areas and issues of ICT access that may further understanding on the basics of this global issue.

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