Center for Coordination Science 
        @ MIT
      1997 TECHNICAL REPORTS AND WORKING 
        PAPERS
       
      
       
      NOTE: If an electronic version of a paper is not available here, or 
        you are unable to successfully download the paper that you want in the 
        formats available, please contact MIT 
        Document Services at (617) 253-5668, DOCS@MIT>EDU. 
        Please, do not contact the authors for copies of papers.  
       
      ABSTRACTS
      1997 Working Papers
      
      
      Sharon Eisner Gillett and Mitchell Kapor 
      January 1997 
      Contrary to its popular portrayal as anarchy, the Internet is actually 
        managed, though not by a manager in the traditional sense of the word. 
        This paper explains how the decentralized Internet is coordinated into 
        a unified system. It draws an analogy to an organizational style in which 
        a manager sets up a system that allows 99% of day-to-day functions to 
        be handled by empowered employees, leaving the manager free to deal with 
        the 1% of exceptional issues. Within that framework, it discusses: 
       
        - how the Internet's technical design and cultural understandings serve 
          as the system that automates 99% of Internet coordination; 
 
        - what the 1% of exceptional issues are in today's Internet, how they 
          are handled by multiple authorities, and where the stresses lie in the 
          current structure; 
 
        - and the differences in mindset that distinguish the Internet's self-governance 
          from the management of more traditional communication systems. 
 
       
       
      
      
      Thomas W. Malone, Kevin Crowston, Jintae Lee, Brian Pentland, Chrysanthos 
        Dellarocas, George Wyner, John Quimby, Charley Osborne, and Abraham Bernstein 
         
      January 1997 
      This paper describes a novel theoretical and empirical approach to tasks 
        such as business process redesign, enterprise modeling, and software development. 
        The project involves collecting examples of how different organizations 
        perform similar processes, and organizing these examples in an on-line 
        "process handbook". The handbook is intended to help people: 
        (1)Êredesign existing organizational processes, (2)Êinvent new organizational 
        processes (especially ones that take advantage of information technology), 
        (3)Êlearn about organizations, and (4)Êautomatically generate software 
        to support organizational processes. A key element of the work is an approach 
        to analyzing processes at various levels of abstraction, thus capturing 
        both the details of specific processes as well as the "deep structure" 
        of their similarities. This approach uses ideas from computer science 
        about inheritance and from coordination theory about managing dependencies. 
        A primary advantage of the approach is that it allows people to explicitly 
        represent the similarities (and differences) among related processes and 
        to easily find or generate sensible alternatives for how a given process 
        could be performed. In addition to describing this new approach, the work 
        reported here demonstrates the basic technical feasibility of these ideas. 
       
       
      
      
      Yannis Bakos and Erik Brynjolfsson 
      January 1997 
      We analyze pricing strategies for digital information goods, such as 
        those increasingly available via the Internet. Because perfect copies 
        of such goods can be created and distributed almost costlessly, any single 
        positive price for copies is likely to be socially inefficient. However, 
        we show that, under certain conditions, a monopolist selling information 
        goods in large bundles instead of individually may nearly eliminate this 
        inefficiency. In addition, the bundling strategy can extract as profits 
        an arbitrarily large fraction of the area under the demand curve for the 
        individual goods while commensurately reducing consumers' surplus. The 
        bundling strategy is particularly attractive when the marginal costs of 
        the goods are very low, when the correlation in the demand for different 
        goods is low, and when consumer valuations for the individual goods are 
        of comparable magnitude. We also describe the optimal pricing strategies 
        when these conditions do not hold; show how private incentives for bundling 
        can diverge from social incentives; and describe a mechanism to recover 
        information about the underlying demand for each individual good. The 
        predictions of our analysis appear to be consistent with empirical observations 
        of the markets for Internet and on-line content, cable television programming, 
        and copyrighted music.  
       
      
      
      Erik Brynjolfsson and Haim Mendelson 
      September 1997 
      In this short paper we briefly discuss the newly emerging organizational 
        paradigms and their relationship to the prevailing trends in information 
        technology (IT). We argue that IT is an important driver of this transformation. 
        Finally, we place the studies selected for the special issue of the Journal 
        of Organizational Computing within this context.  
       
      
      
      Erik Brynjolfsson and Lorin Hitt 
      September 1997 
      Despite evidence that information technology (IT) has recently become 
        a productive investment for a large cross-section of firms, a number of 
        questions remain. Some of these issues can be addressed by extending the 
        basic production function approach that was applied in earlier work. Specifically, 
        in this short paper we 1) control for individual firm differences in productivity 
        by employing a "firm effects" specification, 2) consider the 
        more flexible translog specification instead of only the Cobb-Douglas 
        specification, and 3) allow all parameters to vary between various subsectors 
        of the economy. 
      We find that while "firm effects" may account for as much as 
        half of the productivity benefits imputed to IT in earlier studies, the 
        elasticity of IT remains positive and statistically significant. We also 
        find that the estimates of IT elasticity and marginal product are little-changed 
        when the less restrictive translog production function is employed. Finally, 
        we find only limited evidence of differences in IT's marginal product 
        between manufacturing and services and between the "measurable" 
        and "unmeasurable" sectors of the economy. Surprisingly, we 
        find that the marginal product of IT is at least as high in firms that 
        did not grow during 1988-1992 sample period as it is in firms that grew. 
       
       
      
      
      Erik Brynjolfsson and Shinkyu Yang 
      September 1997 
      In recent years, the relationship between information technology (IT) 
        and productivity has become a source of debate. In the 1980s and early 
        1990s, empirical research generally did not significant productivity improvements 
        associated with IT investments. More recently, as new data are identified 
        and new methodologies are applied, several researchers have found evidence 
        that IT is associated not only with improvements in productivity, but 
        also in intermediate measures, consumer surplus, and economic growth. 
        Nonetheless, new questions emerge even as old puzzles fade. This survey 
        reviews the literature, identifies remaining questions, and concludes 
        with recommendations for applications of traditional methodologies to 
        new data sources, as well as alternative, broader metrics of welfare to 
        assess and enhance the benefits of IT.  
       
     |