Essays in Industrial Organization and Information Technology

Chapter 1 studies how consumers’ switching costs affect the pricing and profits of firms competing in two-sided markets such as Apple and Google in the smartphone market. When two-sided markets are dynamic – rather than merely static – I show that switching costs lower the first-period price if network externalities are strong, which is in contrast to what has been found in one-sided markets. By contrast, switching costs soften price competition in the initial period if network externalities are weak and consumers are more patient than the platforms. Moreover, an increase in switching costs on one side decreases the first-period price on the other side. Chapter 2 examines firms’ incentives to invest in local and flexible resources when demand is uncertain and correlated. I find that market power of the monopolist providing flexible resources distorts investment incentives, while competition mitigates them. The extent of improvement depends critically on demand correlation and the cost of capacity: under social optimum and monopoly, if the flexible resource is cheap, the relationship between investment and correlation is positive, and if it is costly, the relationship becomes negative; under duopoly, the relationship is positive. The analysis also sheds light on some policy discussions in markets such as cloud computing. Chapter 3 develops a theory of sequential investments in cybersecurity. The regulator can use safety standards and liability rules to increase security. I show that the joint use of an optimal standard and a full liability rule leads to underinvestment ex ante and overinvestment ex post. Instead, switching to a partial liability rule can correct the inefficiencies. This suggests that to improve security, the regulator should encourage not only firms, but also consumers to invest in security.

Privacy Tradeoffs in Information Technology Law

The thesis aims to make the dynamics of the tradeoffs involving privacy more visible; both theoretically and in two of the central current policy debates in European data protection law, the right to be forgotten and online tracking. In doing so, it offers an explanation for data protection law from an economic perspective and provides a basis for the evaluation of further data protection measures.

QoS-aware architectures, technologies, and middleware for the cloud continuum

The recent trend of moving Cloud Computing capabilities to the Edge of the network is reshaping how applications and their middleware supports are designed, deployed, and operated. This new model envisions a continuum of virtual resources between the traditional cloud and the network edge, which is potentially more suitable to meet the heterogeneous Quality of Service (QoS) requirements of diverse application domains and next-generation applications. Several classes of advanced Internet of Things (IoT) applications, e.g., in the industrial manufacturing domain, are expected to serve a wide range of applications with heterogeneous QoS requirements and call for QoS management systems to guarantee/control performance indicators, even in the presence of real-world factors such as limited bandwidth and concurrent virtual resource utilization. The present dissertation proposes a comprehensive QoS-aware architecture that addresses the challenges of integrating cloud infrastructure with edge nodes in IoT applications. The architecture provides end-to-end QoS support by incorporating several components for managing physical and virtual resources. The proposed architecture features: i) a multilevel middleware for resolving the convergence between Operational Technology (OT) and Information Technology (IT), ii) an end-to-end QoS management approach compliant with the Time-Sensitive Networking (TSN) standard, iii) new approaches for virtualized network environments, such as running TSN-based applications under Ultra-low Latency (ULL) constraints in virtual and 5G environments, and iv) an accelerated and deterministic container overlay network architecture. Additionally, the QoS-aware architecture includes two novel middlewares: i) a middleware that transparently integrates multiple acceleration technologies in heterogeneous Edge contexts and ii) a QoS-aware middleware for Serverless platforms that leverages coordination of various QoS mechanisms and virtualized Function-as-a-Service (FaaS) invocation stack to manage end-to-end QoS metrics. Finally, all architecture components were tested and evaluated by leveraging realistic testbeds, demonstrating the efficacy of the proposed solutions.

Influencable autonomy and predictable freedom in the IoE

This thesis investigates how individuals can develop, exercise, and maintain autonomy and freedom in the presence of information technology. It is particularly interested in how information technology can impose autonomy constraints. The first part identifies a problem with current autonomy discourse: There is no agreed upon object of reference when bemoaning loss of or risk to an individual’s autonomy. Here, thesis introduces a pragmatic conceptual framework to classify autonomy constraints. In essence, the proposed framework divides autonomy in three categories: intrinsic autonomy, relational autonomy and informational autonomy. The second part of the thesis investigates the role of information technology in enabling and facilitating autonomy constraints. The analysis identifies eleven characteristics of information technology, as it is embedded in society, so-called vectors of influence, that constitute risk to an individual’s autonomy in a substantial way. These vectors are assigned to three sets that correspond to the general sphere of the information transfer process to which they can be attributed to, namely domain-specific vectors, agent-specific vectors and information recipient-specific vectors. The third part of the thesis investigates selected ethical and legal implications of autonomy constraints imposed by information technology. It shows the utility of the theoretical frameworks introduced earlier in the thesis when conducting an ethical analysis of autonomy-constraining technology. It also traces the concept of autonomy in the European Data Lawsand investigates the impact of cultural embeddings of individuals on efforts to safeguard autonomy, showing intercultural flashpoints of autonomy differences. In view of this, the thesis approaches the exercise and constraint of autonomy in presence of information technology systems holistically. It contributes to establish a common understanding of (intuitive) terminology and concepts, connects this to current phenomena arising out of ever-increasing interconnectivity and computational power and helps operationalize the protection of autonomy through application of the proposed frameworks.

A Unitary Approach to Information and Estimation Theory in Digital Communication Systems

This thesis presents the outcomes of a Ph.D. course in telecommunications engineering. It is focused on the optimization of the physical layer of digital communication systems and it provides innovations for both multi- and single-carrier systems. For the former type we have first addressed the problem of the capacity in presence of several nuisances. Moreover, we have extended the concept of Single Frequency Network to the satellite scenario, and then we have introduced a novel concept in subcarrier data mapping, resulting in a very low PAPR of the OFDM signal. For single carrier systems we have proposed a method to optimize constellation design in presence of a strong distortion, such as the non linear distortion provided by satellites' on board high power amplifier, then we developed a method to calculate the bit/symbol error rate related to a given constellation, achieving an improved accuracy with respect to the traditional Union Bound with no additional complexity. Finally we have designed a low complexity SNR estimator, which saves one-half of multiplication with respect to the ML estimator, and it has similar estimation accuracy.