Cambridge Innovation Institute Statement of Work for UCL Projects UCL1 (Spectrum Policy) and UCL2 (Participation in Internet-mediated Interactions) Professor Tilman Borgers (Economics) Professor Ingemar Cox (Computer Science/Electrical Engineering) Professor Helen Margetts (School of Public Policy) UCL1. Spectrum Policy Project Desciption: Radio spectrum is used by the providers of a variety of communication networks. Government policy towards spectrum use has four basic elements: (i) it defines property rights, (ii) it brings property rights into circulation, (iii) it determine how property rights can be traded, and (iv) it sets a legal framework in which license owners can allow others to use the same spectrum. The purpose of this project is to examine alternative government policies in this area. Specific questions which we would like to investigate are: (i) Do spectrum licenses need to be specific about the application for which they are used (like UMTS licenses), or does that hinder efficiency of spectrum allocation and innovation? (ii) Does bidding in spectrum auctions confirm auction-theoretic predictions? (iii) Does unregulated bilateral trading in spectrum licenses improve the efficiency of spectrum allocation, and does it allow innovators to acquire the spectrum rights that they need to implement their innovations? (iv) Will contracts to compensate for interference lead to efficient spectrum use? Resource requirements: This research will require a post-doctoral researcher who can be employed for one year (or part-time equivalent). The researcher will be supervised by Tilman Börgers. Current commitments of Börgers do not allow him to carry out this research himself. UCL2. Participation in Internet-Mediated Interactions Project Description: Widespread use of the internet by individuals and organisations across society and the economy has the potential to drive innovation in public policy and economic activity. But if design does not take into account the factors that determine take-up of on-line transactions then technological innovation will not drive policy and economic innovation in this way. This part of the research is aimed at analysing the factors that determine participation in internet-mediated transactions. For example, when policy- makers design government portals for citizens or business, they assume users will prefer an integrated 'joined-up' government approach. Yet evidence suggests that combining finder sites and search engines on the Internet at large can provide more effective access to government information and services and users may prefer to deal with on-line government in this more disaggregated way. We will investigate government- citizen (G2C) transactions by designing an experimental finder site which uses this more disaggregated approach and test user reactions via mystery shopping exercises. We will also make comparisons with the approach of private companies and the way in which business-customer (B2C) relationships have developed on-line. We intend to study how information (not necessarily government related) is organized and made accessible to users. This includes a study of incentives in recommender systems, and a study of commercial auctions of search engine listings." This part of the research benefits greatly from applying an interdisciplinary approach to a topic normally studied within disciplines and sectors, whereas it is anticipated that government can learn from business, public policy analysts can learn from economists and technologists can have valuable input to economic and social research. Resources requested: This work will bring together economists, public policy analysts and computer scientists - a combination that is rarely applied to these topics. Staff to be employed and for which salary costs are requested are: a public policy post-doctoral researcher (for 1 year or a Phd studentship for 3 years) a computer science post-doctoral researcher (for 1 year or part-time equivalent) 0.5 years of the economics post-doctoral researcher employed to work on spectrum policy (see above)