nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2016‒02‒29
24 papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Redeeming Simmel's money By Nigel Dodd
  2. Trends and preferences in consumer payments: updates from the visa payment panel study By Herbst-Murphy, Susan
  3. Bitcoin as an example of a virtual currency By Anna Wiœniewska
  4. Evolution of mobile handset feature dependences By Vesselkova, Alexandr; Riikonena, Antti; Hämmäinena; Heikki
  5. Horizontal and Vertical Analysis of Privacy and Cyber-Security Markets By Jentzsch, Nicola
  6. The impact of network competition in the mobile industry By Houpis, George; Rodriguez, Jose Maria; Ovington, Thomas; Serdarevic, Goran
  7. How to fill the digital gap? The (limited) role of regulation By Briglauer, Wolfgang; Cambini, Carlo; Melani, Sauro
  8. The supply of personal information: A study on the determinants of information provision in e-commerce scenarios By Potoglou, Dimitris; Palacios, Juan; Feijoo, Claudio; Gómez Barroso, Jose-Luis
  9. Empirical Analysis of Factors Promoting Product Innovation in ASEAN Economies: Focusing on Absorptive Capacity and ICT Use By Idota, Hiroki; Bunno, Teruyuki; Ueki, Yasushi; Shinohara, Sobee
  10. Content providers and co-investment in broadband networks By Anna D'Annunzio; Pierfrancesco Reverberi
  11. Providing identity based on the telephone number: a new business model for telecommunication operators By Carriedo, Francisco; Beltrán, Marta
  12. Diffussion of ICT-products and "five Russias" By Baburin, Vyacheslav; Zemtsov, Stepan
  13. Analysis of the role of international network effects on the diffusion of second and third generation mobile communication networks By Baquero, Maria; Kuroda, Toshifumi
  14. Assessment of spectrum value: application to sub-1GHz frequency bands By González-Valderrama, Carlos; Frías, Zoraida; Martínez, Jorge Pérez
  15. Technology Neutrality: Interaction between International Mobile Telecommunication and National Spectrum Management Policies By El-Moghazi, Mohamed; Whalley, Jason; Irvine, James
  16. The Effectiveness of Individual Targeting Through Smartphone Application in Retail: Evidence from Field Experiment By Mariia I. Okuneva; Dmitriy B. Potapov
  17. Competition in Telecommunications and Internet Services: Problems with Asymmetric Regulations By Paul J.J. Welfens
  18. Insight into the Rival Effects of M&As within the Context of Mobile Ecosystem: The Case of Google and Apple By Yang, Seung Ho; Nam, Changi; Kim, Seongcheol
  19. Privacy protection, risk attitudes, and the need for control: An experimental study By Alisa Frik; Alexia Gaudeul
  20. Monetary transmission in Africa: a review of official sources By McKenzie, Rex A
  21. Mobile data offloading: an agent-based modelling study on the effectiveness of Wi-Fi offloading By Breukers, Yorick; de Reuver, Mark; Oey, Michel; Bouwman, Harry
  22. Mobile market research and the hard−to−reach consumers By Paula Vicente
  23. Optimal Number of Firms in the Wireless Markets By Jeanjean, François; Houngbonon, Georges Vivien
  24. Complement and Network Externalisties in the Mobile Devices Industry By Gyu, Lim Yeon; Taek, Kim Sang

  1. By: Nigel Dodd
    JEL: F3 G3
    Date: 2015
  2. By: Herbst-Murphy, Susan (Federal Reserve Bank of Philadelphia)
    Abstract: Michael Marx, senior director, Visa Research Insights, conducted a workshop in 2009 at the Payment Cards Center (PCC) as the economy was emerging from a recession. At that time, it appeared that the recession had affected consumer payment preferences, especially those related to cash and credit cards. To get an update on consumers’ use of the various payment methods, the PCC invited Marx to facilitate another workshop in 2014. More recent findings from the Visa Payment Panel Study reveal declines in cash use ― a return to the long-term trend ― and increases in credit card use, perhaps signaling some return of confidence among consumers. Check use continued its unbroken long-term decline, and debit card growth has slowed. Private label cards have also registered a steady decline in their share of spending volume for a number of years. Their revolving credit utility, however, remains consequential in financing consumer purchases.
    Keywords: Consumer payments; Electronic payments; Private label credit
    JEL: D1
    Date: 2015–07–03
  3. By: Anna Wiœniewska (Nicolaus Copernicus University, Poland)
    Abstract: Virtual currencies have recently become one of the most popular topics in the media. This paper focuses on economic aspects of Bitcoin, being an attempt to answer the question if Bitcoin can be considered money in the light of economic theories of money. On the basis of the reports published by the European Central Bank and the Financial Action Task Force, as well as the available Internet and primary sources, there have been presented the types, history and functioning of virtual currencies. The knowledge of virtual currencies makes it possible to foresee the problems arising from their existence, such as possible threats to international security, difficulties with taxation etc. The growing popularity of virtual currencies and cryptocurrencies is linked with the increase of importance of non-cash payments on global scale. Thus, Bitcoin may be considered next step in the evolution of digital money.
    Keywords: bitcoin, virtual currencies, cryptocurrencies, legal status of virtual currencies
    JEL: E40 G29 G28 K34
    Date: 2016–02
  4. By: Vesselkova, Alexandr; Riikonena, Antti; Hämmäinena; Heikki
    Abstract: Within 20 years, the mobile handset has evolved from the basic phone merely capable of voice calling to the advanced smartphone, which combines voice communication with multiple other functionalities. Mobile handset components, or features, along with evolving communications infrastructure, enable a smartphone to run numerous mobile applications and services. Therefore, mobile operators, application developers, service providers, and regulators are increasingly interested in the information on mobile handset feature diffusion for making effective managerial and investment decisions. This paper quantitatively studies dependences between mobile handset features, which need to be analyzed for understanding and estimating future feature diffusion. The study is based on an extensive dataset on mobile handset sales in Finland and utilizes a method of hierarchical clustering for identifying the sets of dependent features. The results show that the features became increasingly dependent in 2008-2014. Although the nature of feature dependences differs, on a general level, they arise from mobile handset design decisions made by the device producers. The factors influencing these design decisions and consequently feature dependences can be divided in four main groups: technology, demand, product strategy, standardization and regulatory factors.
    Keywords: handset feature,feature dependence,feature diffusion,dissemination,handset evolution
    Date: 2015
  5. By: Jentzsch, Nicola
    Abstract: Deliverable 4.2 (“Horizontal and Vertical Analysis of Privacy and Cyber-Security Markets”) provides an in-depth discussion of economic incentives, stakeholder engagement and market opportunities in privacy and cyber-security. This report first introduces the reader to the horizontal market analysis, which covers firms active at the same stage of the production chain in the privacy and cyber-security industry and present key market segmentations.The report also presents the vertical analysis of players at different stages of the production chain in the PACS industry. These relations are covered as security in the supply chain is of utmost importance: only secure inputs ensure a secure product as final output. The report also covers engagement and assessment of stakeholders in the privacy and security chain and their relation to PACS in the ICT sector. The report gives several case studies on vertical relations and includes an empirical analysis of incentive schemes. The proposed innovation value chain connects inputs and outputs in the production of PACS goods and services and their relation to economic incentives.Finally, a preliminary scheme on mapping privacy and personal data product and service markets is proposed. Firms active in these markets can be categorized according to their generic value chain, where some use the identification of the user as key input and others do not. The report provides economic incentive templates that enable market players and regulators to potentially better map the markets.The following scheme outlines in brief the relation of the two deliverables D4.1 and D4.2 to the developed Privacy and Cyber-Security Market Scheme. It enables the reader to see what is covered in the different deliverables and to what deliverable he/she needs to turn in order to find the information of interest.
    Date: 2015–01
  6. By: Houpis, George; Rodriguez, Jose Maria; Ovington, Thomas; Serdarevic, Goran
    Abstract: In 2000, there were as many countries served by a single mobile network as by network competition. Today, only 30 countries, representing less than 3% of the world’s population, are served by a single network. There has been considerable discussion about the optimal number of network operators in the mobile industry. More recently, some regulators and governments have considered implementing a single wholesale network to deliver next generation mobile services due to concerns around low coverage, inefficient duplication of costs and lack of competition. To date, the authors are not aware of such single wholesale networks fully implemented in mobile industry. What is clear is that single wholesale networks represent a U-turn with respect the way in which the mobile industry has developed worldwide. Therefore, it is important to carefully examine the available evidence on the performance of mobile markets in countries with a single mobile networks, as this is could shed some light on the expected performance of single wholesale networks. The key result is that countries with network competition have higher coverage, higher take-up and greater innovation than countries with a single mobile network, controlling for other relevant factors. This paper represents a significant contribution to the literature, as the authors are not aware of any other papers that have considered the impact of network competition compared to single networks on outcomes such as coverage. The results of the paper have significant policy implications, as they imply that moving away from the network competition model into the world of single wholesale networks could cause considerable consumer harm, which may be difficult to reverse once there has been a move away from network competition.
    Keywords: regulation,single mobile network,competition,mobile telecommunications
    Date: 2015
  7. By: Briglauer, Wolfgang; Cambini, Carlo; Melani, Sauro
    Abstract: This paper provides evidence on the migration from an 'old' technology to a 'new' technology, taking into account the impact that regulatory interventions on the old one might have on the incentives to invest and adopt the new one. This analysis has been applied to a sample of EU27 countries using panel data from 2004 to 2014 on the adoption, coverage and take-up rate of ultra-fast broadband infrastructures, whose development is one of the flagship initiatives of the Europe 2020 programmes. Results show that a 1% increase in the regulated price to access the old technology increases the adoption and the investment on the new broadband technology by ~0.45% and ~0.47%. These effects are not homogeneous across countries and are weakened in Eastern European countries, where the existing old broadband infrastructures are less developed than in the rest of Europe. It has also been shown that the access price to old networks negatively affects the take-up rate of the new technology-based services, thus calling for the need of more specific and complementary demand side policy incentives to enhance service adoption.
    Keywords: next generation broadband networks,regulation,investment,adoption,take-up,Digital Agenda Europe
    JEL: H5 L38 L43 L52
    Date: 2016
  8. By: Potoglou, Dimitris; Palacios, Juan; Feijoo, Claudio; Gómez Barroso, Jose-Luis
    Abstract: Disjoint research efforts have so far considered latent constructs (e.g. privacy concerns) either as an independent variable to explore consumers' actual or stated intentions or - to a less extent - as dependent variable explained through a number of antecedents (e.g. privacy awareness, demographic differences). However, there has not been a formal link across antecedents, latent constructs and behavioural (or stated) intentions in the context of ecommerce or information disclosure. This paper aims to fill this gap in the literature in order to establish a better understanding of the role of attitudes in respondents' willingness to engage in online purchases. We employ a stated preference discrete choice experiment to collect respondents' choices across online retailers, conventional store and opt-out options under different levels of personal-information requirements. Personal information in the experiment is presented across three dimensions (attributes): amount/type of information collected, duration of storage and the likelihood of this information being shared with third parties. These dimensions are introduced in order to be able to capture risks involved in online transactions according to consumer perceptions. Using the Privacy Calculus as a guiding conceptual framework, the experiment also offers respondents trade-offs between benefits such as faster check-out, detailed reviews and priority shipping of the purchased product. The choice data are complemented with a set of attitudinal indicators (psychometric scales) describing individuals’ attitudes toward information privacy protection. The data comes from 502 participants representing the online-user population in the UK. We report results from Integrated Latent Variable models, which test the influence of these latent constructs in the consumers' decision to purchase a product online and their sensitivity upon attributes describing online retailers. Preliminary model estimation results show that the higher an individual's concern, general caution and technical protection the less likely a consumer is to purchase a product online. In a joint model, the influence of privacy concern is found to outweigh the influence of general caution and technical protection. Also, consumers with increased general caution are less sensitive in the case an online retailer shares their personal data with third parties.
    Date: 2015
  9. By: Idota, Hiroki; Bunno, Teruyuki; Ueki, Yasushi; Shinohara, Sobee
    Abstract: In recent years, East Asian economies have been rapidly developing. The reason is that firms have been successfully achieving product and process innovation by introducing advanced technologies and know-how from MNCs. In order to enhance innovation, firms have to own technology, capability and ICT use. In particular, collaborations with outside organizations such as MNCs (Multi-national corporations), universities, public organizations, local firms are indispensable for firms in developing economies. Authors’ previous research clarified external linkages enhance innovation capability and ICT use, and innovation capability and ICT use promote product innovation in ASEAN firms. These studies analyzed under what conditions firms can promote absorptive capability if they had external linkages. Whether or how absorptive capacity affected innovation capability and ICT use were not explained there. Based on survey data from four ASEAN economies such as Indonesia, the Philippines, Thailand, and Vietnam, from 2013 to 2014, this study clarifies how absorptive capacity, ICTs, and innovation capability such as QC and cross-functional team enhance product innovation by using SEM (Structural equation modeling). As a result, the following causality from external linkages (origin) to innovation (final outcome) is demonstrated: (i) absorptive capacity is enhanced by external linkages such as local firms, public organizations, and universities; (ii) absorptive capacity enhances innovation capability; (iii) innovation capability enhances ICT use; and (iv) innovation capability and ICT use promote product innovation. These are similar to those of authors’ previous research. Since data are different, it is difficult to compare the results, but the robustness of the results is demonstrated.
    Keywords: ICT use,absorptive capacity,external linkages,product innovation,SEM (Structural equation modeling)
    Date: 2015
  10. By: Anna D'Annunzio (Telenor Research, Snar¿yveien 30, 1360 Fornebu, Norway); Pierfrancesco Reverberi (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza")
    Abstract: In many countries, Next Generation Access networks (NGA) deployment and penetration rate proceed at a slower pace than expected. We argue that an ex ante contractual arrangement among access Internet Service Providers (ISPs) and Content Providers (CPs), which builds on the complementarity between infrastructure and content, can promote the roll out of NGA. Different from co-investment of ISPs, and from incentive policies based on access regulation, one such contract brings down the investment cost for the telecom industry, promotes end users' demand for improved connectivity, and internalizes investment externalities. We then study how the regulatory regime of the Internet affects firms' investment incentives. Using a simple model, we show that a departure from network neutrality, which allows the access ISP to negotiate with the CP a fee for priority delivery of content, has ambiguous effects on infrastructure investment. The ISP's and the CP's incentives to (co)-invest in NGA depend on the cost of investment and the CP's bargaining power ex post (when investment is sunk).
    Keywords: Next Generation Access networks ; Investment under uncertainty ; Ex-ante and ex-post contracts ; Network neutrality ; Co-investment
    Date: 2015
  11. By: Carriedo, Francisco; Beltrán, Marta
    Abstract: Managing user identities to solve authentication and access control for current services and applications remains one of the greatest challenges facing IT today. Using telecommunication operators' infrastructures and experience could surely facilitate identity management in such a scenario, because they hold the best and largest user directory of the world. Telephone numbers allow operators to provide rich and disambiguated identities ready to be used by end-­‐users from anywhere with any device. This work proposes an Identity Management as a Service (IdMaaS) based on the telephone number and provided by telecommunication operators. Both, the technical architecture and the most suitable business model needed to build and to exploit this new service are presented.
    Date: 2015
  12. By: Baburin, Vyacheslav; Zemtsov, Stepan
    Abstract: The authors explored the potential of new information and communications technologies (ICT) absorption in Russian regions primarily on an example of mobile communication. ICT-sector is rapidly growing, especially in consumer market, and it is an ideal object for diffusion research because it is fast spreading, and it can be obtained by almost all parts of a social system. The purpose was to classify regions by the rate of innovativeness. The saturation rate for mobile phone usage (active SIM cards per 100 people) was used as a proper indicator on the first stage of the research. All regions were classified according to rates of diffusion from 1999 to 2011, and five clusters were identified, corresponding to diffusion stages, identified by E. Rogers: innovators, early adopters, early majority, late majority and laggards. There were four stages of spatial diffusion, according to the theory of T. Hagerstrand. Each stage were determined by several factors. The most influential factors were income, price of services and competition. Mobile phone usage in most Russian regions reached 100% saturation (one active SIM card per capita) in 2006-2007. Later development was determined not by demand for phone connection, but by the demand for internet connection, which was easily provided by mobile systems in smartphones, tablets, and other devices. To assess the innovativeness of regional communities, or their ability to absorb new products, cluster analysis, based on the threshold values of Bass model parameters, was performed. The results were similar to those obtained earlier, but the early appearance of innovators in several regions did not increase the total number of users. Both previous methods of classification could be biased regarding special features of mobile communication diffusion. That is why, on the last stage an integral index of innovativeness was introduced, including rate of diffusion for several ICT-products on the early period of their introduction. The analysis proved that hierarchical model of diffusion from the main centres to secondary prevailed in Russia. Factor of geographical location also played an important role. The research showed the significant difference in the rate of diffusion between Russian regions. Five stable clusters were identified, which were corresponding with idea of “five Russias” existence. Moscow and Saint Petersburg’s rate of diffusion was higher than in most countries, but there was a widespread periphery.
    Keywords: geography of innovation, diffusion of innovation, Russian regions, mobile communication, logistic curve, Bass model, regions-innovators, index of innovativeness
    JEL: L86 O33 O52 R19
    Date: 2014–05–02
  13. By: Baquero, Maria; Kuroda, Toshifumi
    Abstract: Using quarterly data of 58 countries, this paper provides empirical evidence that mobile phone diffusion from 2007 to 2009 is positively influenced by international network effects. Direct and indirect network effects are a result of the international standadization of telecommunication technologies, which allows consumers in a given country to benefit from other countries' networks by using international roaming services or imported handsets. We define international network effects as the installed base of mobile phone subscribers in countries different than the home country which use the same technology, weighted by various distance metrics. (geographic distance, trade value of mobile handsets and number of personal travelers between the home country and the partner countries.) To measure international network effects, we estimate a series of differentiated-products demand-system models of mobile phones by technology standard with international network effects. To overcome the endogeneity of mobile service price and international network effects, we propose two new instrumental variables (IV). In addition, we test if the impact on mobile phone diffusion differs whether technologies are local or global standards, or whether they are backward/formard-combatible. Based on our findings, we conclude that the large network effects of GSM (Global System for Mobile Communications) technology prevent the diffusion of third generation (3G) mobile phones. We show that the high 3G diffusion rates in Japan and Korea are not driven by state-of-the-art technology or high consumer preference, but by the absence of the GSM standard. Finally, to assess teh effect of technology choice on welfare in Japan, we conduct a counterfactual analysis an demonstrate thar if the GSM technology was introduced in Japan, it would increase Japanese monthly per-consumer surplus from $94.2 to $188.
    Keywords: Cellular telephony,Diffusion,Global standards,Network effect
    JEL: L15 L96 F10
    Date: 2015
  14. By: González-Valderrama, Carlos; Frías, Zoraida; Martínez, Jorge Pérez
    Abstract: This paper is focused on the impact in network operator costs of new sub-1GHz spectrum bands, which will be soon available to provide mobile broadband services. To analyse these effects a techno-economic model has been used to evaluate the maximum inter-site distance and therefore the cheapest network. The results achieved show the different value of the sub 1GHz bands depending on the spectrum holding of the operator.
    Keywords: Techno-economic model,digital dividend,second digital dividend,LTE
    Date: 2015
  15. By: El-Moghazi, Mohamed; Whalley, Jason; Irvine, James
    Abstract: The Radio Sector of the ITU (ITU-R) has been involved in two aspects of personal mobile communication systems, namely defining the standards and identifying frequency bands related to these systems under the label of the International Mobile Telecommunication (IMT). This paper has investigated the influence of IMT standardisation activities in the ITU-R on national spectrum management policies with regard to decisions related to technology neutrality and technology selection. This paper has shown the different views on the importance of being one of the IMT technologies on regulator decision on technology selection, and has also revealed the elements in the IMT process that encourage and discourage more neutrality approach in technology selection. Moreover, different views on the mutual influence between the IMT definitions and 3G and 4G market definitions are highlighted. Furthermore, this paper has demonstrated how that the IMT spectrum identification has different positive influences on selecting technologies from the IMT family, which is mostly dependent on the country, and has also different positive and negative elements of influence on the tendency towards technology neutrality. In general, the paper shows that the international spectrum management regime does not prevent adopting technology neutrality, while having different elements of support and opposing regarding regulators’ tendency towards technology neutrality.
    Date: 2015
  16. By: Mariia I. Okuneva (National Research University Higher School of Economics); Dmitriy B. Potapov (National Research University Higher School of Economics)
    Abstract: Smartphone applications are becoming an important marketing channel that allows to build long-term relationship with customers. The main advantage of advertising through this kind of media is an opportunity to individually target users with different offers, taking into consideration their characteristics and purchase history. However, little is known about the effectiveness of such practice. We use a purely randomized natural field experiment with 11338 customers of large Russian retail chain to understand factors that influence the effectiveness of advertising through smartphone application. We find that the impact of conducted advertising campaign either on number of purchases or purchase amount is slightly negative on average. While most previous studies report positive effect of advertising through mobile devices, we can explain the average negative effect by influence of small discount (less than 20%) offers on consumers’ behavior. Holiday text of the message makes this effect even stronger. Consistent with the literature, the average effect of advertising depends on RFM characteristics of customers. However, the loyalty of consumers or different texts of an advertising message do not affect the effectiveness of advertising via mobile application. These results can help a retail chain to elaborate rules for individual targeting that assure more profits
    Keywords: mobile targeting, randomized field experiment, mobile application, advertising effectiveness.
    JEL: M31 M37 C93 L86
    Date: 2015
  17. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: With the digital convergence of internet services markets and telecommunications markets, the issue of a common, consistent regulation has become more important. While Google or Facebook can exploit knowledge about the content of “data mails” or SMS, data protection rules for telecommunication operators are different – they cannot use info about “structural content” and are thus unable to generate high revenues from advertising that is based on knowledge about structural content. Internet service providers thus can cross-subsidize digital communication services and thereby gain market shares - based on cross-subsidization - in traditional telecommunication markets. Thus there is a fundamental inconsistency of regulations for internet service providers and telecommunication operators which should be remedied by new global rules for the emerging global communications market. The EU and the US, as well as other countries, plus the ITU should launch a joint initiative in order to create a global level playing field.
    Keywords: Internet services, Telecommunication, Regulation, Digital global markets
    JEL: L86 L96 L98
    Date: 2014–12
  18. By: Yang, Seung Ho; Nam, Changi; Kim, Seongcheol
    Keywords: M&A,Rival effects,Google,Apple,Event study,Mobile convergence,Business ecosystem
    Date: 2015
  19. By: Alisa Frik; Alexia Gaudeul
    Abstract: We expose subjects in our experiment to the risk of having to reveal private information to other participants. We show that the decision to incur this risk is driven mainly by their general attitude to monetary risk. Survey attitudes to privacy play only a marginal role in explaining attitudes to privacy risk. Subjects who are more willing to pay or to accept payment for their private information do not appear to be more or less likely to incur privacy risks than others once their overall level of risk aversion is taken into account. We further test the relation between privacy and control, that is, whether depriving subjects of full control over whether their personal information will be revealed leads them to lose interest in protecting it. We find that this is not the case. We finally find that subjects who are asked for their preferences over monetary risk before being asked for their preferences over privacy risks tend to choose riskier options in privacy lotteries. This provides evidence of the importance of framing for privacy decisions; inducing subjects to think of privacy decisions in the context of financial decisions reduces their aversion to privacy risk.
    Date: 2016
  20. By: McKenzie, Rex A (Kingston University London)
    Abstract: This paper focuses on the subject of monetary transmission in Africa. It begins with a report on the effects of the financial crisis of 2008 in Africa. In the countries with more developed financial systems, the financial channel proved to be the most important in transmitting the crisis. In the more peripheral countries, the trade channel proved to be the most important. Where countries were able to withstand the global shock coming from the financial crisis, they did so with a diversified group of trading partners in fast growing economies. The paper then turns to examine three post crisis institutional developments and asks how a) an increased momentum towards regional integration, b) the rise of Pan African banking and, c) an increase in cross border flows, are affecting the monetary transmission mechanism (MTM) in Africa. It is clear from the literature that the rise of Pan African banking and the regionalization thrust of the authorities are deepening the financial channels between countries. But, with respect to cross border flows, the huge size of deposits maintained by Africa’s BIS reporting banks suggests relatively low levels of bank intermediation and competition. Thus, the benefits that are assumed to accrue as a result of increased cross border flows are withdrawn from the local economy and stored up in the BIS banks. We know large deposits reflect the expectations of the deposit holders. But beyond that, very little is known about the role of expectations and the workings of the expectations channel in monetary transmission in Africa. Even less is known about how such expectations would interact with those formed as a result of operations in the large informal sectors which characterise African macro economies. Until research can bridge this gap, the increasing cross border flows with the large deposits held in BIS banks form the basis for yet another explanation for the historical weakness of the MTM in Africa.
    Keywords: Africa; Economic Development; Monetary Policy; Central Banking
    JEL: E50 E60 G10 O16
    Date: 2015–09–16
  21. By: Breukers, Yorick; de Reuver, Mark; Oey, Michel; Bouwman, Harry
    Abstract: To reduce the load on cellular networks, offloading to Wi-Fi has long been discussed as a technological solution. Despite advances in scheduling algorithms and incentive schemes, most mobile operators do not actively promote Wi-Fi offloading and most Wi-Fi usage is limited to stationary in-home contexts of use. This study assesses the proportion of users on the street that can be offloaded to Wi-Fi access points, taking into account different city topologies, speed of movement and technical characteristics of Wi-Fi access points. We show that the proportion of users on the street that can be offloaded to Wi-Fi heavily depends on their speed of moving around, the reach of access points and the delay in logging on to access points. However, even when using standard configurations for access points, base stations and smartphones, half the outdoor users can be offloaded to Wi-Fi. These results are consistent for any type of realistic topology of roads in the city. Based on the results, operators are recommended to promote Wi-Fi offloading as it massively reduces the load on cellular networks.
    Date: 2015
  22. By: Paula Vicente
    Abstract: Market research organizations put a lot of work into trying to reach consumers and make them cooperate with market surveys. Some subgroups are particular hard to reach, notably the young, the employed and the highly educated. Mobile market research is a promising way of catching these consumers since via mobile phones everyone can be accessed anywhere and at any time. This study investigates whether mobile phone surveys make it easier to interview the hard‐to‐reach consumers. Results reveal a significant effect of age on the likelihood of being difficult to reach, but different use patterns of the mobile phone or attitudes towards mobile phones do not affect the likelihood of being a hard‐to‐reach respondent.
    Keywords: market surveys, mobile phones, Computer Assisted Telephone Interviewing
    JEL: C83
    Date: 2015–07–15
  23. By: Jeanjean, François; Houngbonon, Georges Vivien
    Abstract: In this paper, we design a theoretical model to analyze the impact of the number of firms on investment in the wireless communications industry. Our model extends the Salop’s framework by introducing investment in quality that either reduces the marginal cost of production or shifts the consumers’ valuation upward. We find that an increase in the number of firms reduces their incentives to invest in quality. The impact on the aggregate industry investment can be non-monotone. These theoretical findings are supported by empirical evidence from the mobile telecommunications industry. More specifically, we find that mobile operators’ investment in network infrastructure is not affected when going from two to three firms; but decreases above three firms. In addition, there is an inverted-U relationship between the industry investment and the number of mobile operators; the maximum being reached at three or four mobile operators.
    Keywords: Market structure,Investment,Mobile Telecommunications
    JEL: D21 D22 L13 L40
    Date: 2015
  24. By: Gyu, Lim Yeon; Taek, Kim Sang
    Keywords: Hotelling Model,Transportation Cost,Complement Goods,Mobile Devices
    Date: 2015

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