{"title":"Reaching the last mile: Digitalization of tax administration and VAT compliance at the retail stage","authors":"Chao Fang , Jiafeng Pan , Peng Wu","doi":"10.1016/j.infoecopol.2025.101151","DOIUrl":"10.1016/j.infoecopol.2025.101151","url":null,"abstract":"<div><div>Value-added tax (VAT) can promote tax compliance along the supply chain, yet it fails at the retail stage where consumers typically do not request receipts. This study examines whether the digitalization of tax administration can address this problem. Using firm-level tax survey data from China and employing a triple-difference strategy, this paper finds that with Golden Tax Project Phase 3 (GTP3), retail firms' reported revenue and VAT payment have shown a notable increase compared to wholesale firms. Further analysis suggests that GTP3 restricted firms from strategically adjusting their inputs and outputs to minimize VAT payments.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"72 ","pages":"Article 101151"},"PeriodicalIF":3.2,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145625376","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does mobile network coverage increase the performance of informal firms? Evidence from sub-Saharan Africa","authors":"Damien Girollet","doi":"10.1016/j.infoecopol.2025.101150","DOIUrl":"10.1016/j.infoecopol.2025.101150","url":null,"abstract":"<div><div>This paper investigates whether mobile network coverage affects the performance of informal firms in Africa. Using business surveys conducted by Research ICT Africa in 2017-18 in eight sub-Saharan African countries, we rely on historic exposure to lightning strikes as an instrument for mobile network coverage to address endogeneity issues. Our findings show that firms with access to mobile connectivity report significantly higher sales and profits, supporting theoretical predictions on the overall positive effects of digital technology diffusion. As expected, this effect is even stronger for informal firms that actively leverage mobile technologies in their business operations, reflecting the direct benefits of purposeful adoption. These findings suggest that, while mobile network coverage and mobile phone ownership have expanded rapidly across Africa, effective adoption of mobile technology remains a key priority. Significant challenges persist regarding digital inequalities in usage, driven by affordability and skill gaps, highlighting the need for public policies to ensure that informal firms have equitable access to the economic opportunities offered by digital infrastructure.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"72 ","pages":"Article 101150"},"PeriodicalIF":3.2,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145584442","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Øystein Foros , Arne Rogde Gramstad , Bjørn Hansen
{"title":"Stricter margin squeeze regulation to achieve non-discrimination in digital markets","authors":"Øystein Foros , Arne Rogde Gramstad , Bjørn Hansen","doi":"10.1016/j.infoecopol.2026.101159","DOIUrl":"10.1016/j.infoecopol.2026.101159","url":null,"abstract":"<div><div>Non-discrimination clauses are once again central in digital markets, echoing the 1990s debates on telecom liberalization and resurfacing in later discussions on net neutrality. In practice, they often appear as margin squeeze regulations, requiring vertically integrated firms to offer wholesale access with a minimum margin between retail and wholesale prices—the margin’s size determining the rule’s strictness. We show that binding margin squeeze constraints can soften downstream competition, creating a trade-off between product variety and retail prices for both total and consumer welfare. Stricter rules, however, do not spur wholesale access competition, unlike direct wholesale price caps. These results have important implications for telecom and digital market regulation, where regulation of gatekeepers is tightening.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"72 ","pages":"Article 101159"},"PeriodicalIF":3.2,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146090461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Bundling and downstream entry","authors":"Firat Inceoglu , Xingyi Liu","doi":"10.1016/j.infoecopol.2026.101160","DOIUrl":"10.1016/j.infoecopol.2026.101160","url":null,"abstract":"<div><div>We investigate the incentives of an upstream producer to enter the downstream market where the alternative is to sell via a downstream platform who offers all products as a bundle. When consumers can multihome, following entry the producer faces increased downstream competition but benefits from greater price setting flexibility. We show that entry becomes relatively more profitable if the products are closer substitutes or the correlation between product valuations is weaker. Our results have important implications on recent developments in industries such as video and music streaming.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"72 ","pages":"Article 101160"},"PeriodicalIF":3.2,"publicationDate":"2026-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146187937","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do people around the world care where their data are stored?","authors":"Jeffrey Prince , Scott Wallsten","doi":"10.1016/j.infoecopol.2025.101132","DOIUrl":"10.1016/j.infoecopol.2025.101132","url":null,"abstract":"<div><div>Using carefully designed discrete choice surveys, we measure how much individuals care whether their data are stored domestically, i.e., the premium people place on limiting the sharing of their data to their home country compared to elsewhere. We conduct this measure across countries (United States, United Kingdom, South Korea, Japan, Italy, India, and France) and data types (home address and phone number, personal information on finances, biometrics, health status, location, networks, communications, and music preferences). We find only modest evidence of added value resulting from data localization; to the extent that there is added value from localization, it appears to largely come for data types where privacy (i.e., full restrictions on data sharing) is already of high value: financial (account balance) and biometric (facial image) data, and home address and phone number. We also find for the U.S., U.K., Italy, India and France no evidence that excluding China and Russia when allowing for international data sharing affects the data localization premium. Interestingly, for Japan and South Korea, we find evidence of a preference <em>against</em> excluding China and Russia if data are to be shared internationally. We discuss privacy policy implications.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"71 ","pages":"Article 101132"},"PeriodicalIF":4.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144107928","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The effect of lobbies' narratives on academics' perceptions of scientific publishing: A survey experiment","authors":"Giulia Rossello , Arianna Martinelli","doi":"10.1016/j.infoecopol.2025.101148","DOIUrl":"10.1016/j.infoecopol.2025.101148","url":null,"abstract":"<div><div>Biased lobbying narratives shape the perceptions of citizens, practitioners, and policymakers. Copyright lobbies are particularly active today in influencing the Open Access transition. This paper investigates whether opposing copyright lobbies' narratives affect scholars' views on the publishing system. To test the persuasive power of these narratives, we conducted a large-scale randomized survey experiment in six European countries. Scholars were randomly assigned to a control group or exposed to one of two promotional videos representing opposing lobbying interests. The first video presented the publishers' narrative, portraying publishers as innovative firms and guardians of ethics and scientific advancement. The second video presented the narrative of copyright activists, depicting publishers as greedy and unethical. Our findings document scholars' general discontent with the publishing system. However, both lobbying narratives successfully influenced perceptions in favor of their respective causes. Overall, the publishers' narrative had a slightly smaller persuasive effect, largely due to a subset of participants who exhibited strong emotional reactions to the activists' messaging.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"71 ","pages":"Article 101148"},"PeriodicalIF":3.2,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145265769","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Content providers and the deployment of Internet infrastructure","authors":"El Hadi Caoui, Andrew Steck","doi":"10.1016/j.infoecopol.2025.101134","DOIUrl":"10.1016/j.infoecopol.2025.101134","url":null,"abstract":"<div><div>This paper documents the growing role that content providers play upstream in the global internet supply chain. Using novel data, we establish three stylized facts: (1) As bandwidth buyers, content providers' share of global used bandwidth has grown dramatically (from 5% to 69%) over the period 2005–2021, with important heterogeneity across regions. (2) Content providers (in particular, Amazon, Google, Meta, and Microsoft) account for an increasingly large share of investment in internet cable infrastructure. (3) The growth in content providers' demand is associated with the roll-out of their data centers globally and corresponding increase in inter-data center traffic; their investment in private cables is in part driven by data center siting, which are in locations that may lack connectivity to public internet cables. We discuss implications of these trends for innovation, internet traffic transparency, technology standard adoption, and network resilience.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"71 ","pages":"Article 101134"},"PeriodicalIF":4.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144099274","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Eric Darmon , Thomas Le Texier , Zhiwen Li , Thierry Penard
{"title":"Multimarket contact, cross-market externalities and platform competition","authors":"Eric Darmon , Thomas Le Texier , Zhiwen Li , Thierry Penard","doi":"10.1016/j.infoecopol.2025.101133","DOIUrl":"10.1016/j.infoecopol.2025.101133","url":null,"abstract":"<div><div>Antitrust authorities are concerned with the dominant market position of Tech Giants such as Google, Meta, or Amazon. These digital conglomerates are characterized by platform-based business models and multimarket contact (MMC). In traditional one-sided markets, theory and empirical evidence show that MMC tends to relax competition. In this paper, we revisit this result in the context of platform competition with competitive bottleneck and cross-market externalities, and provide new insights into the impact of MMC on platform competition. In this context, when platforms charge the two groups of users (bilateral pricing), we find that MMC always decreases the profitability of platforms regardless of the nature and magnitude of cross-market externalities. Then we consider the case in which platforms can only charge one group of users (unilateral pricing). When platforms charge the side on which they are not directly competing for users (i.e. the side that is not the competitive bottleneck), MMC may relax competition only if cross-group externalities and cross-market externalities are both sufficiently small. From a competition policy perspective, our paper provides insights into how antitrust authorities should review conglomerate mergers in digital markets and assesses the effects of the diversification strategies of digital platforms in the context of cross-market externalities and competitive bottleneck.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"71 ","pages":"Article 101133"},"PeriodicalIF":4.5,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144123891","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Big data and firm-level productivity – A cross-country comparison","authors":"Raphaela Andres , Thomas Niebel , Robin Sack","doi":"10.1016/j.infoecopol.2025.101147","DOIUrl":"10.1016/j.infoecopol.2025.101147","url":null,"abstract":"<div><div>Until today, the question of how digitalisation and, in particular, individual digital technologies affect productivity is still the subject of controversial debate. Using administrative firm-level data provided by the Dutch and the German statistical offices, we investigate the economic importance of data, in particular, the relation between the application of <em>big data analytics</em> (BDA) and <em>labour productivity</em> (LP) at the firm level. We find that a simple binary measure indicating the mere usage of BDA fails to capture the association between BDA and LP. In contrast, measures of BDA diversity, defined as conducting BDA across multiple data sources, clearly show a positive and statistically significant relationship between BDA and LP, even after controlling for a firm's general digitalisation level. Hence, our results suggest that one mechanism through which firms conducting BDA may achieve greater productivity gains is by incorporating data from multiple domains.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"71 ","pages":"Article 101147"},"PeriodicalIF":3.2,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145104357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"From black box to glass box: algorithmic explainability as a strategic decision","authors":"Xavier Lambin , Adrien Raizonville","doi":"10.1016/j.infoecopol.2025.101149","DOIUrl":"10.1016/j.infoecopol.2025.101149","url":null,"abstract":"<div><div>The best-performing algorithms are often the least explainable. In parallel, there is growing concern and evidence that algorithms may autonomously engage in misconduct. Inspired by recent regulatory proposals, we propose a simple model of firm compliance and explainability decisions under the threat of (costly and imperfect) regulatory audits. When audit efficacy is independent of explainability, audits and transparency always encourage investment in explainability, with transparency signaling compliance. However, if explainability strongly improves audit efficacy, firms may hide misconduct behind opaque algorithms, a phenomenon exacerbated by opportunistic auditing policies. In these cases, audits may stimulate the proliferation of black box algorithms.</div></div>","PeriodicalId":47029,"journal":{"name":"Information Economics and Policy","volume":"71 ","pages":"Article 101149"},"PeriodicalIF":3.2,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145525554","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}