nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2017‒04‒16
23 papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Formalization of Chilean banking activity in the second half of the 19th century By Ross, Cesar
  2. Addressing Financial Exclusion in France and India By Tara Nair
  3. Lending-based crowdfunding: opportunities and risks By Marcello Bofondi
  4. The spread of branch banking and the demand for cash in post-war Germany By Malte Krüger
  5. Consumer Demand for Fully Automated Driving Technology: Evidence from Japan By Kong Joo SHIN; MANAGI Shunsuke
  6. A note on money creation in emerg-ing market economies By Alexey Ponomarenko
  7. 일본 전자상거래 시장 현황 분석 및 정책 시사점 (An Analysis on Japan's E-Commerce Market and Its Policy Implications) By Lee , Hyong-Kun
  8. eGovernment in Deutschland: Bedeutung und Potenzial für das deutsche Innovationssystem By Bahrke, Michael; Kempermann, Hanno; Schmitt, Katharina
  9. Salience in Retailing: Vertical Restraints on Internet Sales By Helfrich, Magdalena; Herweg, Fabian
  10. Real-time determination of credit cycle phases in emerging markets By Elena Deryugina; Alexey Ponomarenko
  11. Monetary transmission under competing corporate finance regimes = Transmisión monetaria bajo regímenes alternativos de finanzas corporativas By Paul de Grauwe; Eddie Gerba
  12. Competition Issues in India's Online Economy. By Parsheera, Smriti; Shah, Ajay; Bose, Avirup
  13. Not all that Glitters is Gold: ICT and Inclusive Human Development in Sub-Saharan Africa By Asongu, Simplice; Nwachukwu, Jacinta
  14. Social Finance and the Commons By Camille Meyer
  15. The Relevance of Age Categories in explaining Internet Banking Adoption Rates and Customers' Attitudes towards the Service By Silvio John, Camilleri; Gail, Grech
  16. Selling Money on Ebay: A Field Study of Surplus Division By Alia Gizatulina; Olga Gorelkina
  17. Nudges as Conversion Funnel Enhancers in Digital Business Models By Koch, Oliver Francis
  19. 중국 지역별 창업 생태계 분석 및 시사점: 청두, 우한을 중심으로 (Analysis of the Chinese Regional Startup Eco-System and its Implications: With a Focus on Chengdu and Wuhan) By Oh , Jonghyuk; Pak , Jinhee; Kim , Hongwon
  20. Initiatives and Challenges for Social Implementation of AI Technology: Learning from AIST's AI projects (Japanese) By KONISHI Yoko; MOTOMURA Yoichi
  21. Network Formation and Disruption - An Experiment. Are efficient networks too complex? By Sonja Brangewitz; Behnud Mir Djawadi; Angelika Endres; Britta Hoyer
  22. The right response to digital disruption By Jacques Bughin; Nicolas van Zeebroeck
  23. Deposit dollarization in emerging markets: modelling the hysteresis effect By Anna Krupkina; Alexey Ponomarenko

  1. By: Ross, Cesar
    Abstract: This article analyzes the formalization of Chilean banking activity in the second half of the 19th century. It also considers the consequences of the legalization of banknote issuance as legal currency on the Chilean economy. The main hypothesis is that the formalization of banking activity had two main effects: on the one hand, it helped to develop the money market. On the other hand, it increased market concentration while there was no control of money issuing activity. This article is based on an archival research, contemporary magazines, newspapers and other secondary sources.
    Keywords: issuing banks, means of payment, bank notes, Chile
    JEL: E51 L53 N2 N86
    Date: 2016–08–08
  2. By: Tara Nair (Gujarat Institute of Development Research - Gujarat University)
    Abstract: Malgré les différences importantes quant à la couverture des comptes bancaires, l’Inde et la France ont été victimes de l’exclusion de larges segments de la population des services bancaires et financiers. Alors que l’Inde tente d’accélérer le rythme de couverture des comptes bancaires par le biais de plusieurs initiatives, la France s’efforce de combler le fossé entre la couverture étendue des comptes bancaires et l’accès limité aux services bancaires grâce à des arrangements institutionnels au sein et en dehors du secteur bancaire. En Inde, les politiques récentes ont ouvert des voies aux acteurs de la microfinance et aux entreprises axées sur la technologie pour faire partie de la campagne d’intégration financière. La tendance à une plus grande participation du secteur privé aux activités financières est également visible en France, en dépit de la riche histoire des approches solidaires de l’inclusion sociale et du droit constitutionnel accordé à ses citoyens de détenir des comptes bancaires. L’expérience de la France montre clairement qu’assurer le droit d’avoir des comptes bancaires personnels ne conduira pas à un système bancaire inclusif ou à une capacité financière accrue des individus, en particulier des personnes économiquement vulnérables.
    Keywords: India,financial exclusion,banks,indebtedness,Inde,France,exclusion financière,banques,microcrédit,endettement
    Date: 2017–02–08
  3. By: Marcello Bofondi (Banca d'Italia)
    Abstract: Lending-based crowdfunding (LBC) is an alternative funding channel to that represented by credit intermediaries. LBC allows households and small businesses to be financed directly by a multitude of investors. Supply meets demand online platforms. This paper first describes how LBC platforms operate, identifying the potential risks and benefits of their operations and then attempts to indicate if and how LBC will contribute to the evolution of the financial system. Although it is unlikely that LBC will pose a significant threat to the banking system and its profitability, it has nevertheless the potential to stimulate traditional intermediaries to review their business models and to create an alternative source of financing for households and small and medium-sized enterprises. The risks to financial stability posed by LBC can be mitigated by establishing rules that limit the expansion of credit to riskier borrowers and by ensuring investors’ capacity to absorb any losses.
    Keywords: FinTech, lending-based crowdfunding, financial innovation
    JEL: G21 G23 G28
    Date: 2017–03
  4. By: Malte Krüger
    Abstract: The period from the 1950s to the late 1970s saw an almost uniform decline of cash-to-GDP ratios in industrial countries. A closer look at the German payment system suggests that the factor causing such a change has been the shift towards cashless wage payments. In this period, in Germany, the branch network of the banks expanded significantly and at the end of the period almost all economically active persons had a current account. This change was triggered by rising wages and incomes. Rising wages increased the burden of weekly wage payments in cash, and rising incomes made the average earner more interesting for banks. Moreover, regulation and de-regulation, triggering both, price and non-price competition, may also have played a role. Technological change has not been an independent driver. The introduction of cashless wage payments has not only affected the payment behavior but also the savings behaviour of households. These changes were evolutionary rather than revolutionary, however. So, even though the cash-to-GDP ratio declined in this period, absolute amounts of real cash per capita were still rising.
    Keywords: retail payments, demand for cash, innovation
    JEL: E41 G29 L89 O33
    Date: 2016–09
  5. By: Kong Joo SHIN; MANAGI Shunsuke
    Abstract: Automated driving technology is one of the most important applications of advanced artificial intelligence technology, which is being extensively incorporated into transportation worldwide. Policymakers expect the introduction of fully automated vehicles (FAV) to significantly reduce the number of accidents that are due to human error and road congestion. Using originally collected large-sample survey data from 2015, this paper evaluates current consumer demand in terms of purchase intention (PI) and willingness to pay (WTP) for FAV in Japan. On average, consumers expect FAV to be available for purchase in approximately 13 years, and 47% of respondents report positive PI. Average WTP was approximately 190,000 yen ($1,650) and 290,000 yen ($2,520) for respondents with positive PI. Using regression analysis, we also analyze the determinants of PI and WTP, such as the subjective merits and demerits of FAV as well as other household and city characteristics.
    Date: 2017–03
  6. By: Alexey Ponomarenko (Bank of Russia, Russian Federation)
    Abstract: This paper discusses the money creation mechanisms in emerging markets with special focus on external transactions. We argue that one should not rule out the possibility that fluctuations in the loans-to-deposits and non-core liabilities ratios are driven by the banks. We also argue that, under a flexible exchange rate regime in which the central bank is not trying to accumulate foreign reserves, external transactions are unlikely to contribute significantly to money growth. To make our argument, we analyze a historical episode of these flows in Korea and Russia and conduct a canonical correlation analysis for a cross-section of emerging market economies.
    Keywords: Money supply, non-core liabilities, loans-to-deposits ratio, emerging markets
    JEL: E51 F30 G21
    Date: 2016–05
  7. By: Lee , Hyong-Kun (Korea Institute for International Economic Policy)
    Abstract: Korean Abstract: 본 연구는 세계 제4위의 규모로 성장한 일본의 전자상거래 시장에 대한 관심을 환기시키고, 대(對)일 전자상거래 수출 현황과 애로요인을 분석하여 수출 활성화를 위한 정책 시사점을 제시하는 데 목적이 있다. 이 목적을 위해 일본 전자상거래 시장 현황 조사, 대일 전자상거래 수출 통계 분석, 대일 전자상거래 수출기업에 대한 설문조사라는 세 가지 방향으로 연구를 진행하였다. 먼저 제2장에서는 일본의 전자상거래 시장 현황과 정부 정책을 분석하였다. 일본의 B2C 전자상거래 시장은 2010~14년 연평균 증가율이 13.2%로, 매년 두 자릿수의 높은 성장세를 보이고 있다. 2014년 B2C 시장 규모는 12.8조 엔으로 2010년 대비 1.6배 이상 성장하였다. B2C 전자상거래시장에서 상품 분야가 6.8조 엔으로 규모가 가장 크지만(비중 53.2%), 증가율 측면에서는 디지털 분야가 2014년에 전년대비 37.1% 증가하여 최대의 성장세를 보였다. 일본의 B2C 전자상거래 시장은 향후에도 지속 성장하여 2021년에는 2014년의 두 배 규모(25.6조 엔)에 이를 것으로 전망되었다. 또한 일본 정부의 246개 중소기업 지원사업 중에서 해외 전자상거래 수출기업에 대한 지원은 단 하나(전자상거래를 활용한 해외판로개척 지원사업)에 불과했으며, 전자상거래에 관련된 분쟁을 해결하기 위한 관련 규정의 정비를 중시하고 있음을 알 수 있었다. 제3장에서는 대일 전자상거래 수출 동향에 대해 분석하였다. 일본의 전자상거래 시장이 확대되면서 전자상거래를 통한 우리나라의 대일 수출은 2013~15년에 연평균 222.5%의 성장률로 급증세를 보였다. 같은 기간 전자상거래를 통한 대일 수입의 연평균 성장률이 48.7%인 것과 비교하면 대일 수출이 네 배 이상 빠른 속도로 증가한 것이다. 2015년 대일 전자상거래 수출액은 737만 달러, 수입액은 5,256만 달러이다. 기업규모별 대일 수출을 보면, 2015년에 중소기업이 233만 달러로 전체의 31.6%를, 기타가 479만 달러로 65.0%를 차지하고 있다. 또한 품목별로 보면 2015년 3대 수출 품목은 패션(42.5%), 뷰티(19.1%), 식품(9.2%)으로, 이 세 품목은 전체의 70.8%를 차지할 정도로 수출 품목의 집중화가 나타났다. (후략) English Abstract: This research aims to call attention to the astonishing growth of the Japanese e-commerce market, which has grown to become the 4th biggest in the world in 2014, and propose policy suggestions for increasing Korea’s e-commerce exports to Japan. To achieve this end, this research analyzes Japan’s e-commerce market and the statistical data on Korea’s e-commerce exports to Japan, and conducts a survey of Korean companies exporting to Japan through e-commerce platforms. The findings of the research are as follow: First, the Japanese e-commerce market, presently the 4th largest in the world, is expected to continue to grow in the future. Particular growth is expected in the digital market, which includes online games, e-publishing, etc. Second, one of the reasons Korea’s e-commerce exports in 2015 increased more than threefold compared to the year before is because the Korean government started to include goods for list-clearance in its export statistics; since list-clearance does not require information such as company size or item name, the value of trade classified under “others” or “no sorting” has increased significantly. Third, according to export statistics, Korean e-commerce exports to Japan depend heavily on items that belong to the two fields of fashion and beauty (comprising 61.6% of the total). (The rest omitted).
    Keywords: Electronic Commerce Market; Japan
    Date: 2016–09–22
  8. By: Bahrke, Michael; Kempermann, Hanno; Schmitt, Katharina
    Abstract: Die gesellschaftliche Durchdringung von Technologie ermöglicht erst heute eine umfassende Lösung auf Basis von eGovernment-Services. Globale Megatrends wie die Digitalisierung, Vernetzung und Wissensintensivierung wirken nicht nur in der Wirtschaft, sondern sind sich auch im persönlichen Umfeld weit verbreitet. Der Alltag wird zunehmend durch die Nutzung von Smartphones, Tablets, Laptops, etc. technologisch durchdrungen. Dies eröffnet große Potenziale durch nachhaltige Veränderungen im Verwaltungsbereich und eine wachsende gesellschaftliche Ausrichtung auf digitale Lösungen. Mit der Digitalisierung von Behördendiensten von der lokalen bis zur Bundesebene gehen Effizienzsteigerungen durch Kosten- und Zeiteinsparungen bei den Nutzern und Anbietern einher, da persönliche Verwaltungsgänge durch eine digitale Vernetzung überflüssig werden. Hiervon profitieren Bürger sowie Verwaltungen gleichermaßen. Die vorliegende Untersuchung beschäftigt sich mit der Frage nach dem Stand der Digitalisierung des Verwaltungssektors in Deutschland und vergleicht die Ergebnisse mit den Ländern Südkorea, USA, Estland und Finnland. Diese haben sich in den letzten Jahren international eine führende Rolle bei der Implementierung elektronischer Verwaltungsprozesse erarbeitet.
    Date: 2016
  9. By: Helfrich, Magdalena; Herweg, Fabian
    Abstract: We provide an explanation for a frequently observed vertical restraint in e-commerce, namely that brand manufacturers partially or completely prohibit that retailers distribute their high-quality products over the internet. Our analysis is based on the assumption that a consumer's purchasing decision is distorted by salient thinking, i.e. by the fact that he overvalues a product attribute -- quality or price -- that stands out in a particular choice situation. In a highly competitive low-price environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local (physical) retailers is low, price tends to be salient also in the local store, which is unfavorable for the high-quality product and limits the wholesale price a brand manufacturer can charge. If, however, the branded product is not available online, a retailer can charge a significant markup on the high-quality good. As the markup is higher if quality rather than price is salient in the store, this aligns the retailer's incentives with the brand manufacturer's interest to make quality the salient attribute and allows the manufacturer to charge a higher wholesale price. We also show that, the weaker are consumers' preferences for purchasing in the physical store and the stronger their salience bias, the more likely it is that a brand manufacturer wants to restrict online sales. Moreover, we find that a ban on distribution systems that prohibit internet sales increases consumer welfare and total welfare, because it leads to lower prices for final consumers and prevents inefficient online sales.
    Keywords: Internet competition; Relative thinking; Retailing; salience; Selective distribution; Vertical restraints
    JEL: D43 K21 L42
    Date: 2017–03
  10. By: Elena Deryugina (Bank of Russia, Russian Federation); Alexey Ponomarenko (Bank of Russia, Russian Federation)
    Abstract: We test the ability of early warning indicators that appear in the literature to predict credit cycle peaks in a cross-section of emerging markets. Our results confirm that the standard credit gap indicator performs satisfactorily. The robustness of real-time credit cycle determination may potentially (and with a risk of overfitting the data) be improved by simultane-ously monitoring GDP growth, banks’ non-core liabilities, the financial sector’s value added and (to a lesser extent) the change in the debt service ratio.
    Keywords: credit cycle, countercyclical capital buffers, early warning indicators, emerging markets.
    JEL: E37 E44 E51
    Date: 2017–01
  11. By: Paul de Grauwe; Eddie Gerba
    Abstract: The behavioural agent-based framework of De Grauwe and Gerba (2015) is extended to allow for a counterfactual exercise on the role of banks for monetary transmissions. A bank-based corporate financing friction is introduced and the relative contribution of that friction to the effectiveness of monetary policy is evaluated. We find convincing evidence that the monetary transmission channel is stronger in the bank-based system compared to the market-based. Impulse responses to a monetary expansion are around the double of those in the market-based framework. The (asymmetric) effectiveness of monetary policy in counteracting busts is, on the other hand, relatively higher in the market-based model. The statistical fit of the bank-based behavioural model is also improved compared to the benchmark model. Lastly, we find that a market-based (bankbased) financing friction in a general equilibrium produces highly asymmetric (symmetric) distributions and more (less) pronounced business cycles.
    Keywords: monetary policy in EA; monetary transmissions; banks; financial frictions; market based finance
    JEL: E44 E52 G21 G32
    Date: 2017–04
  12. By: Parsheera, Smriti (National Institute of Public Finance and Policy); Shah, Ajay (National Institute of Public Finance and Policy); Bose, Avirup (Jindal Global Law School)
    Abstract: The world of high technology companies is seen as a dynamic area with a rapid pace of creative destruction. There is, however, a class of industries where there are strong network effects, where the market tends to collapse into a narrow set of players. After one burst of innovation where a new online business is born, there is the possibility of entrenched market power with the extraction of consumer surplus.Many firms, global and Indian, have resorted to the strategy of making large losses by subsidising users, as a way to obtain those network effects. This has created a new class of concerns about predatory pricing, with unprecedented negative profit margins on a sustained basis, being supported by equity capital infusions. In the short run,discounts are popular, but recoupment is inevitable and market power will adversely affect consumers in the future. We argue that the existing competition law regime in India needs to be fine tuned, for technology-enabled markets with significant network effects, to address the possibility of new kinds of abusive conduct. We offer a series of tangible proposals through which the Competition Commission of India can better handle these emerging situations. We also look into the role and responsibilities of the investors who back these online businesses and the impact of their conduct on competition in the underlying markets.
    Date: 2017–04
  13. By: Asongu, Simplice; Nwachukwu, Jacinta
    Abstract: This paper examines the short and long term effects of information and communication technology (ICT) on inclusive human development in a panel of 49 Sub-Saharan African countries for the period 2000-2012. ICT is measured in terms of mobile phone penetration, internet penetration and telephone penetration rates. While mobile phone penetration has positive short run and long term effects on inclusive human development, the effects of internet and telephone penetrations are insignificant. Moreover, the long term inclusive human development benefits of the mobile phone are higher than the corresponding short term rewards. Policy implications are discussed.
    Keywords: ICT; inclusive human development; Africa
    JEL: G20 I10 I32 O40 O55
    Date: 2016–12
  14. By: Camille Meyer
    Abstract: The commons is a concept increasingly used by practitioners and social activists with the promise of creating new collective wealth (Bollier & Helfrich, 2014; De Angelis, 2003; Hardt & Negri, 2009; Klein, 2001). In recent years, a variety of scholarly research explained the different ways of organizing commons (Van Laerhoven & Ostrom, 2007). To that end, many streams of inquiry have emerged in various areas: organization theory (Ansari et al. 2013; Fournier, 2013; Tedmanson et al. 2015), institutional economics (Hess, C. & Ostrom, 2011; Ostrom, 1990, 2005, 2010), political philosophy and legal studies (Dardot & Laval, 2014; Holder and Flessas, 2008; Hardt & Negri, 2009), nonprofit studies (Aligica, 2016; Bushouse et al. 2016; Lohmann, 2014, 2016) and business ethics (Argandoña, 1998; Melé, 2009, 2012; O’Brien, 2009; Sison & Fontrodona, 2012; Solomon, 2004). However, these different theories are usually conceived and used separately. Empirical research on commons has mainly focused on natural resources at local and global levels (Ansari et al. 2013; Cody et al. 2015; Cox & Ross, 2011; Galaz et al. 2012; Ostrom, 1990, 2010; Poteete et al. 2010), and also on digital and scientific resources (Benkler, 2006; Boyle, 2008; Cook‐Deegan & Dedeurwaerdere, 2006; Coriat, 2015; Hess & Ostrom, 2011). Despite a long research tradition in local community organizations, there is little empirical scientific knowledge that uses the lens of the commons to study shared resources that are neither natural nor informational in nature. This dissertation aims to fill these gaps by analyzing social finance services and organizations from an interdisciplinary perspective. The aim is to understand whether communities can create financial commons. By analyzing the processes involved, the dissertation sheds light on the social and institutional components enabling the creation of human-made commons. We focus on community organizations linked to the solidarity economy movement in Brazil. Such movement aims to promote socio-economic alternative organizations, especially for poverty alleviation and inequality reduction.More specifically, the dissertation identifies the nature of two kinds of shared financial resources––microcredit services and complementary currencies––and looks at the functioning of community arrangements that provide them, the community components mobilized for creating commons organizations, and the institutional work strategies developed by intermediary organizations to adjust the scale of these social finance services.The dissertation is structured in four chapters, each of which addresses different research questions and uses different methods and units of analysis. The first chapter is conceptual and based on a literature review on complementary currencies in order to identify the commons dimensions of seven complementary currency systems. The second chapter is an in-depth single case study of Banco Palmas, a Brazilian community bank. This chapter analyzes the transformative power of governance on private goods when managed by self-governed grassroots organizations. Chapter three is a comparative case study of five community banks that focuses on the community components involved in creating commons as a grassroots response to contested market and state institutions. The final chapter focuses on the diffusion and institutionalization of social finance in Brazil and the role played by five intermediary organizations in this process.Starting from the observation that there is no definition of financial commons, Chapter 1 – Money and the Commons: Lessons from Complementary Currencies – proposes to assess the commons dimensions of monetary systems created and managed by local organizations. Specifically, we investigate the organizational features of seven complementary currency systems by making use of two main theoretical frameworks that are usually separate: the new commons in organization studies and the common good in business ethics. The findings show that these alternative monetary systems and organizations promote the common interest through the creation of new communities and can therefore be considered as commons according to the common good framework. Nevertheless, only systems relying on collective action and self-management fulfill the new commons framework. This allows us to suggest two new categories of commons: “social commons”, which fulfills both the new commons and the common good frameworks, and the “commercial commons”, which that fulfill the common good but not the new commons framework. Building on this, we define an ethos of the commons as a principle that consists in organizing commons practices through both collective organization and ethical concern for human flourishing.Chapter 2 - A Case Study of Microfinance and Community Development Banks (CDBs) in Brazil: Private or Common Goods? - looks at how governance mechanisms of self-managed community organizations affect the characteristics of microcredit services. Based on field research in Brazil, this chapter uses Elinor Ostrom’s design principles of successful self-governing common-pool resource organizations to analyze community banks’ microcredit systems. Our results suggest that private goods could be altered when governed by community self-managed enterprises. They become hybrid goods because they mix the characteristics of private and common goods. This change is facilitated by specific organizational arrangements, such as self-governance, that emerge from grassroots dynamics and the creation of collective-choice arenas. These arrangements help strengthen the inclusion properties of nonprofit microcredit services.In order to identify what components enable commons creation, we conduct a comparative case study of five Brazilian community banks in Chapter 3 – Building Commons in Community Enterprise: The Case of Self-Managed Microfinance Organizations. We analyze how community enterprises create commons whereas market and state institutions reproduce exclusion and inequalities. Our results suggest that four components are required to establish a new organization of commons: collective decision-making, community social control, servant leadership, and desire for social change. Building on this, we develop a model of commons organization and explain why these organizations are substitutes for existing marginalizing institutions. This study contributes to the literature by examining new elements for commons creation and shedding light on the emergence of new institutional arrangements for social change. Finally, after looking at commons institutional arrangements at local level in communities, we examine how commons organizations diffuse, institutionalize and organize in networks for consolidating their activities. Chapter 4 - Institutional Change and Diffusion in Institutional Plurality: The Case of Brazil’s Solidarity Finance Sector – explains how intermediary organizations help in this process. More precisely, we analyze the institutional work strategies deployed by five intermediary organizations in the Brazilian plural institutional context, where autonomous local state agencies and banks influence community banks' activities. We show how intermediary organizations support the institutionalization of community development banks (CDBs) through diffusing these organizations in different communities, performing external institutional work with governments and public banks at national and local levels, and accomplishing internal institutional work through structuring CDBs and CDB networks.
    Keywords: Social finance, Commons, Common good, Community enterprise, Organization theory, Institutional theory, Business ethics, Qualitative methods
    Date: 2017–04–21
  15. By: Silvio John, Camilleri; Gail, Grech
    Abstract: This paper focuses on customers’ attitudes towards internet banking (IB), with particular reference to generational differences vis-à-vis such service. These factors are important for banks to project how demand is likely to develop over time. After modelling the IB adoption decision across a sample of countries, we conduct a questionnaire amongst bank customers who include users and non-users of IB and set up focus groups, each comprising participants from a specific age bracket. Whilst generational factors do not emerge as significant in the regression models, the questionnaires and focus groups suggest that generations differ in their attitudes towards IT-delivery systems and choice of preferred delivery channels. In this way banks have to constantly ensure that their online product mix is appropriate to cater for such distinct needs, especially in view of the increasing competition from non-bank entities in areas such as payments services.
    Keywords: Bank Delivery Channels, Generations, Internet Banking, Malta, Retail Banking.
    JEL: J10 M15 M31 O33
    Date: 2017–01–19
  16. By: Alia Gizatulina (University of St. Gallen and Max Planck Institute for Research on Collective Goods); Olga Gorelkina (Max Planck Institute for Research on Collective Goods)
    Abstract: We study the division of trade surplus in a competitive market environment by conducting a natural field experiment on German eBay. Acting as a seller, we offer Amazon gift cards with face values of up to 500 Euro. Randomly arriving buyers, the subjects of our experiment, make price offers according to eBay rules. Using a novel decomposition method, we infer offered shares of trade surplus and find that the average share proposed to the seller amounts to 29%. Additionally, we document: (i) insignificant effects of stake size; (ii) poor use of strategically relevant public information; and (iii) behavioural differences between East and West German subjects.
    Keywords: Field experiment, ultimatum game, surplus division, bargaining, Internet trade, eBay
    JEL: C72 C93 C57
    Date: 2016–12
  17. By: Koch, Oliver Francis
    Abstract: By leveraging the technological advancements in information, communication, and connectivity technologies, specifically the internet, firms continue to innovate and create value through new digital business models which are disrupting entire industries. More recent success stories include Spotify, a music streaming service which has transformed the way music is consumed and has disrupted the entire music retail industry as well as Dropbox, which has been attributed a similar disruptive role in regards to consumer file storage. However, competition and distraction in the online space are fierce and consumers often expect products and services on the internet to be free, urging firms to rethink the design of their conversion funnel to win new customers and thus capture the value they create. The conversion funnel describes the transformation users undergo when sequentially proceeding through four stages to ultimately complete an online transaction with the firm: from being a non-visitor to becoming a visitor (also called acquisition), to becoming a registered user (also called activation) and lastly a converted customer (also called customer conversion). While Information Systems (IS) research on the conversion funnel of digital business models has dealt quite extensively with the antecedents of consumer decision making in all parts of the funnel, big questions remain as to how firms may actively shape desired outcomes in regards to acquisitions and customer conversions. Research on acquisitions has emphasized that traditional advertising is becoming less effective due to media saturation and consumers wanting to rely on more credible sources when seeking information on new products and services. This has lead mechanisms such as referrals, which relate to passing along messages received by the marketer to one’s peers, to become a critical component of marketing strategy. However, extant contributions have focused on the antecedents of consumer referral decisions, leaving a big gap as to how firms may actually enhance referrals and thus improve acquisition outcomes. Similarly, research on customer conversions has mainly focused on identifying the antecedents of consumer decision making at the neglect of shedding light on how one may actually shape conversion outcomes. On the other hand, IS research on activations is quite mature and has paid attention to both the antecedents of consumer decision making as well as how firms may drive better activation outcomes. Digital nudging, which refers to the practice of using visual user interface elements to influence consumer behavior in digital choice environments, has shown promising results in driving activation outcomes in this regard. For example, the usage of pull vs. push mechanisms in requesting information to consumers may influence their privacy concerns and thus activation outcomes. However, digital nudges have so far been widely ignored in the context of acquisition and customer conversions. Against this backdrop, three studies were conducted. The first study, by drawing on a randomized field experiment in the context of an online fashion service named StyleCrowd, investigates the effect of scarcity and personalization nudges in enhancing consumer referrals and thus improving acquisition outcomes. Building on this, the second study is focused on examining the potential of scarcity and social proof nudges as referral enhancers in the context of a randomized online experiment with the German startup Blinkist. Lastly, the third study examines how free trial order nudges may be used to enhance customer conversions within freemium business models by drawing on a contest-based online experiment. Overall, this thesis expands our understanding of how digital nudges may be used to enhance acquisition and conversion outcomes within the conversion funnel of digital business models. On the acquisition end, we provide evidence of how scarcity, social proof as well as personalization nudges may increase consumers’ propensity to engage in referrals and explicate the drivers that mediate these effects. Furthermore, we also shed light on the positive interaction effects between scarcity and social proof as well as the negative interaction effects between scarcity and personalization, and provide explanations for these phenomena. On the customer conversion end, we demonstrate how free trial order nudges may be used to enhance premium conversion within freemium business models. Besides unveiling the drivers that mediate this positive effect, we also explicate external factors that act as moderators. In sum, the contributions of this thesis are not limited to digital business models and digital nudges, but also extend into IS and marketing research on electronic word of mouth as well as research on cognitive biases. From a practical perspective, firms may leverage our findings for the design of their conversion funnel by carefully employing digital nudges to enhance acquisition and conversion outcomes.
    Date: 2017
  18. By: Pramod D Patel; Rajendra M Patel
    Abstract: The purpose of the present study was to examine the use of Internet tools and electronic information resources by Management Students in B – School Libraries of Gujarat. In all, 630 students of MBA and PGDM Programs studying in B-Schools in Gujarat were selected and questionnaires were administered to them. Finally, total 567 filled-in questionnaires – questionnaire with responses - were received back. The questionnaire was analyzed statistically. The open-ended questions and options were analyzed using content analysis.A specifically designed questionnaire was administered to gather information about the awareness of resources, the frequency of use, the kind of information sources preferred by students, the main reasons for using the resources, the perceived effectiveness of the searches, the factors encouraging their use and the major obstacles in terms of using them effectively. Results showed that the vast majority of the participants used Internet search engines rather than In order to exploit the full potential of electronic information, library should undertake a more active role in informing, promoting, and educating the members of the academic community. Key Words: Internet, Electronic Information, B-School Policy
    Date: 2017–03
  19. By: Oh , Jonghyuk (Korea Institute for International Economic Policy); Pak , Jinhee (Korea Institute for International Economic Policy); Kim , Hongwon (Korea Institute for International Economic Policy)
    Abstract: Korean Abstract: 중국은 경제성장 둔화와 이에 따라 늘어나는 취업난에 대응하고자 창업을 적극 강조하고 있다. 2016년부터 추진 중인 「13차 5개년 규획」에서도 누구나 창업이 가능한 환경을 조성하고, 모든 사람이 혁신의 주체가 된다는 의미의 '대중창업, 만중혁신(大众创业, 万众创新)'과 기술기반의 창업자를 의미하는 ‘촹커(创客)'육성이 주요 키워드로 등장했다. 또한 전국적으로 인큐베이터 형태의 '대중창업공간(众创空间)' 설립이 확대되고 있다. 이에 본 보고서는 변화하는 중국의 창업 현황과 투자, 정책 방향에 대해 파악하고, 나아가 한국과의 창업 협력이 기대되는 쓰촨성 청두시(四川省 成都市)와 후베이성 우한시(湖北省 武汉市)의 창업 생태계에 대한 분석과 시사점을 도출했다. English Abstract: The Chinese government has been actively supporting startups in response to the slowdown in economic growth and the sluggish job market. In its 13th Five-Year Plan (2016-2020), the concepts of Dazhong Chuangye ,which signifies mass entrepreneurship and innovation, and Chuangke, which translates into "technical makers," have emerged as main keywords. In addition, the establishment of business incubator spaces called Zhongchuang kongjian,meaning "maker-spaces for the people," is expanding nationwide. Following the trend, leading cities for startups such as Beijing, Shenzhen and Shanghai, as well as other local governments, are making every effort to create a startup eco-system. Among these, Chengdu in Sichuan Province and Wuhan in Hubei Province are gaining attention. In this report, we analyze the changing trends, investment and policy directions for startups in China. We also further analyze the entrepreneurial eco-system of Chengdu and Wuhan to draw implications for future cooperation. The number of China's startups in 2015 was 4,439,000, rising to the highest ever. The hottest sector for startups was in the area of services, more particularly internet, culture and education services. Startups must overcome very fierce competition for survival, as the percentage of expert-led startups is small and startups are concentrated in similar target sectors. Investment for startups also recorded a historic amount. Along with the collapse of the stock market, unicorn companies have suffered a drop in profitability and investment for startups looks to have shrunk in the first half of 2015. However with vigorous fund exit taking place through the "new third board" OTC (over the counter) market, China remains the second-largest in number of unicorn companies in the world after the United States....(The rest is omitted.)
    Date: 2016–12–30
  20. By: KONISHI Yoko; MOTOMURA Yoichi
    Abstract: Currently, many companies and universities are engaged in research and development of artificial intelligence (AI) technology, Internet of Things (IoT), sensing technology, etc. In the service and manufacturing sectors for companies ranging from small to large sized, there is more incentive to gather big data to utilize AI technology. Against this backdrop, the Ministry of Economy, Trade and Industry is conducting a wide variety of projects such as industrial development, support for small and medium enterprises, and regional creation projects in order to improve each field's productivity by using these technologies. However, the challenge is to gain insights on what kinds of efforts and suitable environments are needed to succeed and continue in the projects. In this paper, we review 28 projects conducted by the National Institute of Advanced Industrial Science and Technology (AIST) according to our internal classification table. Through our analysis, we clarify the points to notice when implementing AI technology in companies and local governments.
    Date: 2017–03
  21. By: Sonja Brangewitz (Paderborn University); Behnud Mir Djawadi (Paderborn University); Angelika Endres (Paderborn University); Britta Hoyer (Paderborn University)
    Abstract: We experimentally study the emergence of networks under a known external threat. To be more specific, we deal with the question if subjects in the role of a strategic Designer are able to form safe and efficient networks while facing a strategic Adversary who is going to attack their networks. This investigation relates theoretical predictions by Dziubinski and Goyal (2013) to actual observed behaviour. Varying the costs for protecting nodes, we designed and tested two treatments with different predictions for the equilibrium network. Furthermore, the in fluence of the subjects' farsightedness on their decision- making process was elicited and analysed. We find that while subjects are able to build safe networks in both treatments, equilibrium networks are only built in one of the two treatments. In the other treatment, predominantly safe networks are built but they are not efficient. Additionally, we find that farsightedness -as measured in our experiment- has no in fluence on whether subjects are able to build safe or efficient networks.
    Keywords: Networks, Experiment, Network Design, Network Defence, Network Disruption
    Date: 2017–04
  22. By: Jacques Bughin; Nicolas van Zeebroeck
    Abstract: Companies that adopt bold offensive strategies in the face of industry digitization will come out the winners.
    Keywords: disruptive innovation; digital strategy; digital transformation
    JEL: L10 O14 O32
    Date: 2017
  23. By: Anna Krupkina (Bank of Russia, Russian Federation); Alexey Ponomarenko (Bank of Russia, Russian Federation)
    Abstract: We apply empirical modelling set-ups developed to capture the hysteresis effect to the data on deposits dollar-ization in a cross-section of emerging market economies. Namely, we estimate nonlinear relationship that determines two equilibrium levels of deposit dollarization depending on its current dollarization value and the preceding episodes of sharp depreciation of the national currency over the past five years. When exchange rates are stable convergence to-wards higher equilibrium level of dollarization begins when the 45-50% threshold of deposit dollarization is exceeded. We estimate the model for short-run dynamics of dollarization and find that the speed of convergence towards higher equilibrium implies quarterly increase of the foreign currency deposits to total deposits ratio by 1.2-3 percentage points.
    Keywords: dollarization, hysteresis, nonlinear model, emerging markets.
    JEL: C23 E41 F31
    Date: 2015–06

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