nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2016‒03‒17
six papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Payment Scheme Self-Selection in the Credence Goods Market: An Experimental Study By Hernan Bejarano; Ellen P. Green; Lindsay Ham; Stephen Rassenti
  2. Cell Phone Security: Usage Trends and Awareness of Security Issues By Scott Mensch
  3. Virtual Currencies and Beyond; Initial Considerations By Dong He; Karl Friedrich Habermeier; Ross B Leckow; Vikram Haksar; Yasmin Almeida; Mikari Kashima; Nadim Kyriakos-Saad; Hiroko Oura; Tahsin Saadi Sedik; Natalia Stetsenko; Concha Verdugo Yepes
  4. Innovation systems and policy: A tale of three countries By Jan Fagerberg
  6. Fairs for e-commerce: the benefits of aggregating buyers and sellers By Pierluigi Gallo; Francesco Randazzo; Ignazio Gallo

  1. By: Hernan Bejarano (CIDE and Economic Science Institute, Chapman University); Ellen P. Green (School for the Science of Healthcare Delivery, Arizona State University); Lindsay Ham (University of Arkansas); Stephen Rassenti (Economic Science Institute, Chapman University)
    Abstract: Given heterogeneity in expert behavior across payment schemes in credence goods markets, it becomes important to understand the consequences of payment scheme selection. To study the effect on customer well being of expert self-selection, we recruited subjects to participate in a real-effort credence good laboratory market. Experts were either randomly assigned or faced with the choice of three payment schemes: fee-for-service, salary, and capitation. We found that experts who selected fee-for-service payment resulted in customers with significantly worse outcomes in comparison with experts who had been randomly assigned to fee-for-service. In contrast, experts who selected salary payment did not change customer outcomes relative to those who were randomly assigned.
    Keywords: Credence Goods, Self-Selection, Fee-for-service, Capitation, Payment, Sorting
    Date: 2016
  2. By: Scott Mensch (Indiana University of Pennsylvania)
    Abstract: One only has to look around while they are in public places to see the increased usage of cell phones in today's society. People glued to their phones can easily be found in restaurants, waiting rooms, sporting events, movie theaters, or even while people are walking or driving a vehicle. The amount of users who are using apps on their smart phones for not only social networking purposes, but also reading e-mail, shopping online, and checking bank accounts and paying bills has drastically increased within the past three years. The act of taking these portable devices outside of the office or home has added a new element in network security. While the common users computer literacy skills have increased over the past decade, it is unknown if the rapid advancements in smart phone technology has mirrored individuals understanding of network security concerns when using cell phones. This paper servers as the foundation to begin a research study regarding cell phone security behaviors as part of a broader study examining the security practices and cell phone usage of college students. While students understand the importance of network and data security, a broader study is needed to gauge their understanding of securing their mobile devices from not only physical intrusions, but also traditional security issues such as viruses, spam, and spyware.
    Keywords: Network security, cell phone security, cell phone usage trends
  3. By: Dong He; Karl Friedrich Habermeier; Ross B Leckow; Vikram Haksar; Yasmin Almeida; Mikari Kashima; Nadim Kyriakos-Saad; Hiroko Oura; Tahsin Saadi Sedik; Natalia Stetsenko; Concha Verdugo Yepes
    Abstract: New technologies are driving transformational changes in the global financial system. Virtual currencies (VCs) and the underlying distributed ledger systems are among these. VCs offer many potential benefits, but also considerable risks. VCs could raise efficiency and in the long run strengthen financial inclusion. At the same time, VCs could be potential vehicles for money laundering, terrorist financing, tax evasion and fraud. While risks to the conduct of monetary policy seem less likely to arise at this stage given the very small scale of VCs, risks to financial stability may eventually emerge as the new technologies become more widely used. National authorities have begun to address these challenges and will need to calibrate regulation in a manner that appropriately addresses the risks without stifling innovation. As experience is gained, international standards and best practices could be considered to provide guidance on the most appropriate regulatory responses in different fields, thereby promoting harmonization and cooperation across jurisdictions.
    Keywords: Monetary policy;Virtual currencies, cryptocurrencies, payment technology, distributed ledger, blockchain, financial innovation, financial efficiency, financial inclusion, AML/CFT, consumer protection, tax evasion, exchange controls, capital flows management, financial regulation, financial stability, international cooperation, currencies, exchange, currency, goods, General, General, Government Policy and Regulation, Government Policy and Regulation, General, General, All Countries, Bitcoin, efficiency gains, regulatory challenges, consumer risk, tax treatment, circumvention of capital controls,
    Date: 2016–01–20
  4. By: Jan Fagerberg (University of Oslo, Ålborg University and University of Lund)
    Abstract: Nordic policy makers have long been aware of the fact that prosperity requires more than just, say, well-functioning labor markets and/or generous social and educational policies. It also requires that the capabilities of the labor force are put to productive use in a way that enhances the productivity of the nation and hence the returns for the stakeholders. Nordic policy makers have therefore for a long time experimented with various policy instruments supporting productivity growth. Over the years different labels have been attached to such policy experiments (science, technology, industry policy etc.), but more recently the term innovation policy has become more widely used, and this practice is also adopted here. The paper provides an account of how innovation policies have evolved in three Nordic countries (Sweden, Norway and Finland) and considers the possible lessons from what has been done. The discussion informed by the literature on national innovation systems (introduced in the second section of the paper).
    Date: 2016–02
    Abstract: Knowledge is an increasingly significant factor of production in modern agriculture. Information and communication Technology (ICT) generated lot of hopes to disseminate updated information to the farming community, overcoming the barriers of distance, socio-economic status, gender etc. ICTs can accelerate agricultural development by facilitating knowledge management. Several ICT initiatives in rural India and implementation of ICTs in agriculture has been proposed and developed in the recent decades. though there are so many ICT tools available in villages still many of the farmers are not making use of these tools for obtaining timely information due to physical, social and psychological barriers. Especially, attitude of the farmers plays a significant role in accepting and using these tools. since these initiatives are new to their social system and establish rare contact with the external world. Hence, the study was conducted in Karnataka state to know the attitude of farmers about ICT tools using for farm communication. The findings of the study revealed that more than two-fifth of the farmers had favorable attitude towards ICT tools followed by least favorable attitude and most favorable attitude towards ICT tools. Majority of the respondents had knowledge about TV and mobile which are providing agricultural information but majority of the respondents didn’t know regarding internet, agricultural DVDs, social media and interactive conferencing. Hence, there is need to educate the farmers regarding ICT tools like internet, conferencing and agricultural DVDs by means of providing training and make availability of these ICT tools in rural areas.
    Keywords: Attitude, ICT, DVDs, social media, internet
    JEL: D83 L82 Q10
  6. By: Pierluigi Gallo; Francesco Randazzo; Ignazio Gallo
    Abstract: In recent years, many new and interesting models of successful online business have been developed. Many of these are based on the competition between users, such as online auctions, where the product price is not fixed and tends to rise. Other models, including group-buying, are based on cooperation between users, characterized by a dynamic price of the product that tends to go down. There is not yet a business model in which both sellers and buyers are grouped in order to negotiate on a specific product or service. The present study investigates a new extension of the group-buying model, called fair, which allows aggregation of demand and supply for price optimization, in a cooperative manner. Additionally, our system also aggregates products and destinations for shipping optimization. We introduced the following new relevant input parameters in order to implement a double-side aggregation: (a) price-quantity curves provided by the seller; (b) waiting time, that is, the longer buyers wait, the greater discount they get; (c) payment time, which determines if the buyer pays before, during or after receiving the product; (d) the distance between the place where products are available and the place of shipment, provided in advance by the buyer or dynamically suggested by the system. To analyze the proposed model we implemented a system prototype and a simulator that allow to study effects of changing some input parameters. We analyzed the dynamic price model in fairs having one single seller and a combination of selected sellers. The results are very encouraging and motivate further investigation on this topic.
    Date: 2016–02

This nep-pay issue is ©2016 by Bernardo Bátiz-Lazo. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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