nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2019‒01‒21
forty-one papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Consumer valuation of Fintech: The case of Mobile Payment in Korea By Ha, Jinkyung
  2. MobilePay versus Swipp - Main insights from a Nordic country for mobile payment apps By Moritz, Karl-Heinz; Stadtmann, Georg; Stadtmann, Tobias
  3. Are Zero-Rating Practices in the Public Interest? A Set of Case Studies By Jordan, Scott
  4. Where do you sell your products online? A seller perspective on online shopping platforms By Lee, Saerom; Ryu, Min Ho; Lee, Sang Yup; Kwak, Dong-Heon
  5. Telecommunication Submarine-Cable Deployment and the Digital Divide in Sub-Saharan Africa By Joël Cariolle
  6. Patterns of domestic and cross-border e-commerce in Spain: A gravitational model approach By Hicham Ganga; Javier Alonso; Vincenzo Spiezia; Jan Tscheke
  7. Equilibrium Bitcoin Pricing By Biais, Bruno; Bisière, Christophe; Bouvard, Matthieu; Casamatta, Catherine; Menkveld, Albert J.
  8. The brave new world of digital personal assistants: Benefits and challenges from an economic perspective By Budzinski, Oliver; Noskova, Victoriia; Zhang, Xijie
  9. Mobile Usage baskets to measure ICT Sector Performance By Esselaar, Stephen; Stork, Christoph
  10. Data is Different: Why the World Needs a New Approach to Governing Cross-border Data Flows By Susan Aaronson
  11. Approaches to market openness in the digital age By Francesca Casalini; Javier López González; Evdokia Moïsé
  12. Do we Experience Day-of-the-week Effects in Returns and Volatility of Cryptocurrency? By Yaya, OlaOluwa S; Ogbonna, Ephraim A
  13. Study on Awareness Policies for Dissemination of Family Internet Rules by Libertarian-Paternalism By Saito, Nagayuki
  14. How the discussion on a contested technology in Twitter changes: Semantic network analysis of tweets about cryptocurrency and blockchain technology By Hong, Yoorim
  15. Online freelancing: Potential for digital gig work in India, Sri Lanka and Myanmar By Galpaya, Helani; Senanayake, Laleema
  16. Transformación digital y competencia en el sector financiero By Santiago Fernández de Lis; Pablo Urbiola
  17. Substitution between mobile telephony and OTT communication services: the case of Thailand By Jirakasem, Monarat; Mitomo, Hitoshi
  18. Understanding the demand growth for digital connectivity By van der Vorst, Tommy; Brennenraedts, Reg
  19. The logical evolution of internet governance policy in China from 1994-2017: A computational textual analysis approach By Wu, Jun
  20. The Potential of ICT in Serbia: An Emerging Industry in the European Context By Alexander Kleibrink; Nikola Radovanovic; Henning Kroll; Djerdj Horvat; Djuro Kutlaca; Lazar Zivkovic
  21. Online advertising: Trends, benefits and risks for consumers By OECD
  22. The Chinese model of universal service policy: A two-decade retrospect based on an integrated framework By Xia, Jun
  23. Regime heteroskedasticity in Bitcoin: A comparison of Markov switching models By Chappell, Daniel
  24. Can Reputation Discipline the Gig Economy? Experimental Evidence from an Online Labor Market By Benson, Alan; Sojourner, Aaron; Umyarov, Akhmed
  25. Snack-media platform market segmentation based on user heterogeneity: A Q-methodology approach By Kim, Suwon
  26. The Internet of Platforms and Two-Sided Markets: Implications for Competition and Consumers By Frieden, Rob
  27. Suspicious minds: user perceptions of privacy on Facebook in Myanmar By Hurulle, Gayani; Galpaya, Helani; Ababakirov, Azamat
  28. Creating platforms by hosting rivals By Hagiu, Andrei; Jullien, Bruno; Wright, Julian
  29. The Foreign Exchange Market With the Cryptocurrency and "Kimchi Premium" By Oh, Jeong Hun
  31. Optimal Regulation of P2P Lending for Small and Medium-Sized Enterprises By Nemoto, Naoko; Huang, Bihong; Storey, David
  32. Information Please: A Comprehensive Approach to Digital Trade Provisions in NAFTA 2.0 By Susan Aaronson
  33. Empirical Asset Pricing via Machine Learning By Shihao Gu; Bryan Kelly; Dacheng Xiu
  34. Governing Social Media Platforms As Critical Information Infrastructures By Li, Tian; Fei, Fang; Yanqing, Hong
  35. A cross-country analysis of Over-the-Top video market growth: A panel data analysis By Lee, Sangwon; Lee, Seonmi; Joo, Hye Min
  36. Extended Producer Responsibility (EPR) and the Impact of Online Sales By Mark Hilton; Chris Sherrington; Andrew McCarthy; Peter Börkey
  37. What is the role of social media? Self-Mediation, Banksy and the resistance By Nien, Wei Ling
  38. Factors affecting streamers' loyalty to live streaming platforms By Koo, Hyunmo
  39. On (intellectual) property and other legal frameworks in the digital economy: An economic analysis of the law By Rusche, Christian; Scheufen, Marc
  40. Platform Thinking is the Future of Aftersales Business in the Automotive Industry By Mabuma, Joffrey
  41. Investor Sentiment and Attention in Capital Markets - A (Social) Media Perspective By Ton, Quoc-Thai

  1. By: Ha, Jinkyung
    Abstract: Fintech, the convergence of finance and internet related technology, is regard as new promising financial service. Among Fintech services, mobile payment which is new type of payment tool for consumer with smartphone started to draw attention. As the mobile payment started to replace current payment service, consumer valuation of the service is important as business viewpoint. In the case of valuation, totally four important attributes (origin, availability, economic benefit, and accessibility) were postulated for consumer decision making of mobile payment. This study conducted conjoint analysis to define ideal pair of mobile payment attributes. Result showed that among the four attributes, availability which refers to where the service can be used was mostly valued from consumers. This result corresponded to both user and non-user of mobile payment.
    Date: 2018
  2. By: Moritz, Karl-Heinz; Stadtmann, Georg; Stadtmann, Tobias
    Abstract: We describe the development of the market for mobile payments in Denmark. In the first step, we explain the two main competing products as well as their underlying technologies. In the second step, we also analyze the competition within the Danish market from debit card companies and the competition which stems from outside of the banking industry (Apple Pay). Based on our analysis, we derive some managerial as well as policy implications.
    Keywords: FinTech,First-Mover Advantage,Open versus closed platforms,two sided markets,diffusion,market entry
    JEL: B52 G21 L86
    Date: 2018
  3. By: Jordan, Scott
    Abstract: Zero-rating and associated throttling practices by broadband Internet access service providers are widely debated. We evaluate three types of such practices. We find that sponsored data programs are likely in the public interest if and only if the price charged is reasonable and not unreasonably discriminatory. In contrast, we find that zero-rating and throttling of video streaming is not in the public interest, because it constitutes application-specific throttling and is not reasonable network management. We also find that free mobile Internet access to specific edge providers is likely not in the public interest, because it likely unreasonably interferes with or disadvantages end-users or edge providers.
    Date: 2018
  4. By: Lee, Saerom; Ryu, Min Ho; Lee, Sang Yup; Kwak, Dong-Heon
    Abstract: With the rapid development of information and communication technologies, various online shopping platforms have emerged. To understand the success of platform strategies, it is important to verify the features that are important to attract sellers. To estimate the economic value of free platforms for sellers, we try to estimate the willingness to pay (WTP) for each feature. Based on the features provided by Naver Smart Store (, we conduct a conjoint analysis. Notably, since Naver Smart Store platform provides the platform service for free to sellers as an open platform strategy, we can anticipate that the results of this research will reveal the value of an open platform strategy.
    Keywords: Digital Platform,Online Platform Strategies,Commerce Market,Conjoint Analysis,Willingness to Pay
    Date: 2018
  5. By: Joël Cariolle
    Abstract: The recent deployment of fibre-optic submarine cables (SMCs) in sub-Saharan Africa (SSA) raised the prospects for the digital economy expansion and the whole sub-continent take-off, but also exposed countries and populations to new sources of vulnerability. This paper provides empirical evidence on the ambivalent effect of SMC deployment on the digital divide in 46 SSA countries. On the one hand, results show that the laying of SEACOM, MainOne and EASSy cables in 2009-2010 has yielded a three percentage points increase in internet penetration rates. This is a huge increase, meaning that the deployment of these cables has almost doubled the penetration of Internet in the sub-continent’s population. On the other hand, exogenous sources of telecommunication disruptions related to SMC laying – the country’s exposure to SMC outages and digital isolation – are found to reduce internet and mobile penetration rates, to lower investments in ICTs, and to increase mobile-cellular tariffs and the wireline network instability. Therefore, while SMC arrival in SSA has reduced the digital divide, this divide would be lower if SSA countries were less digitally vulnerable.
    Keywords: ICT, internet, submarine cables, infrastructures, telecommunications, digital divide, Sub-Saharan Africa
    JEL: F02 L96 O33 O18
    Date: 2018
  6. By: Hicham Ganga; Javier Alonso; Vincenzo Spiezia; Jan Tscheke
    Abstract: This paper presents econometric evidence on the determinants of domestic and cross-border e-commerce in Spain based on BBVA anonymised data. The paper applies the gravity model of trade to explain online credit card payment flows, using all private customer transactions of BBVA for Spain.
    Keywords: Working Paper , Consumption , Digital economy , Analysis with Big Data , Spain
    JEL: B22 F41 L81
    Date: 2018–12
  7. By: Biais, Bruno; Bisière, Christophe; Bouvard, Matthieu; Casamatta, Catherine; Menkveld, Albert J.
    Abstract: We offer an overlapping generations equilibrium model of cryptocurrency pricing and confront it to new data on bitcoin transactional benefits and costs. The model emphasizes that the fundamental value of the cryptocurrency is the stream of net transactional benefits it will provide, which depend on its future prices. The link between future and present prices implies that returns can exhibit large volatility unrelated to fundamentals. We construct an index measuring the ease with which bitcoins can be used to purchase goods and services, and we also measure costs incurred by bitcoin owners. Consistent with the model, estimated transactional net benefits explain a statistically significant fraction of bitcoin returns.
    Date: 2018–12
  8. By: Budzinski, Oliver; Noskova, Victoriia; Zhang, Xijie
    Abstract: The paper applies economic theories to give an overview of the emerging phenomenon of digital personal assistants (DPAs). A DPA is an intelligent automated system that interacts with the user through a dialogue in natural language, and meanwhile applying third-party services to obtain information and perform various actions. We analyze the benefits of increasing usage of DPAs, such as reduction of transaction costs, enhanced organization efficiency, procompetitive effects, and boosting the e-commerce economy. Besides benefits, however, adopting DPA in life may also contain some risks and downsides, which may reduce the positive welfare effects or even lead to decreasing welfare: biased services, market power on the DPA market and economic dependence on a dominant DPA, potential leveraging of DPA suppliers' market power into neighboring markets, personalized data (ab)use and privacy, media bias and manipulation of public opinion.
    Keywords: digital personal assistant,DPA,platform economics,economics of privacy,imperfect competition,behavioral economics,antitrust,smart speaker,auto-mated assistant,virtual assistant,digital butler,digital helper,digital assistant,speech-based interface,agent-based assistant,algorithmic assistant,digitization,digital economy
    JEL: L86 L13 L40 D43 D90 D82 K21 O33
    Date: 2018
  9. By: Esselaar, Stephen; Stork, Christoph
    Abstract: This paper aims to address two questions. Firstly, whether the OECD mobile usage baskets from December 2017 are suitable tools to measure ICT sector performance in developing countries and, secondly, to identify issues that require a regulatory or policy response. This paper uses prices collected in January 2018 from 100 countries, 547 mobile operators and 2560 prepaid products from the Global South to assess the suitability of the OECD basket methodology for ICT policy making and regulation. We propose a simple index that can be compiled using ITU data to measure the drivers of the separation of mobile access and service platforms.
    Date: 2018
  10. By: Susan Aaronson (George Washington University)
    Abstract: Companies, governments, and individuals are using data to create new services such as apps, artificial intelligence (AI) and the internet of things (IoT). These data-driven services rely on large pools of data and a relatively unhindered flow of data across borders (few market access or governance barriers). The current approach to governing cross-border data flows through trade agreements has not led to binding, universal, nor interoperable rules governing the use of data. Trade diplomats first established principles to govern cross-border data flows, and then drafted e-commerce language in free trade agreements, rather than through the WTO, the most international trade agreement. Data-driven services however, will require a different domestic and international regulatory environment than that developed to facilitate e-commerce. Most countries with significant numbers of data-driven firms are in the process of debating how to regulate these services and the data that underpins them. I argue that policymakers must devise a more effective approach to regulating trade in data for four reasons: the unique nature of data as an item exchanged across borders; the sheer volume of data exchanged; much of this data exchanged across borders is personal data, and the fact that although data could be a significant source of growth, many developing countries are unprepared to participate in this new data driven economy and to build new data driven services. This article begins by with an overview and then describes how trade in data de is different from trade in goods or services. It then examines analogies used to describe data as an input, which can help understand how data could be regulated. Next, we discuss how trade policymakers are regulating trade in data and how these efforts have created a patchwork. Finally, it suggests an alternative approach. "
    Keywords: data, digital trade, AI, internet, trade, FTA, WTO
    JEL: F1 F5
    Date: 2018–10
  11. By: Francesca Casalini (OECD); Javier López González (OECD); Evdokia Moïsé (OECD)
    Abstract: The digital transformation has had a profound impact on international trade, lowering barriers to internationalisation and contributing to growing trade competitiveness, but at the same time making international trade transactions more complex. Distinctions between goods and services and between modes of delivery have become blurred, and trade today must not only to be faster and more reliable, but also meet a range of regulatory requirements that differ across markets, including those related to privacy, consumer protection and security. Against this backdrop, this paper suggests that new and more holistic approaches to market openness are needed for the 21st century. These should take into consideration issues that span goods, services and digital networks more jointly and involve more international dialogue between a range of stakeholders and policy communities. The paper then discusses how principles of good regulatory practice in relation to market openness – in particular, transparency, non-discrimination, interoperability and avoidance of unnecessary trade restrictiveness – can provide guidance when approaching some of these emerging challenges, with a view to helping inform policy makers as they consider rules for the digital age.
    Keywords: data flows, Digital trade, digitalisation, market openness, trade policy
    JEL: F13 O33
    Date: 2019–01–21
  12. By: Yaya, OlaOluwa S; Ogbonna, Ephraim A
    Abstract: This present paper investigates day-of-the-week effect in some notable cryptocurrency in terms of pricing and market capitalizations. We applied fractional integration regression approach with dummies. We found non-significance of day-of-the-week effect in returns, while there is possible evidence of Monday and Friday effects in volatility of Bitcoin only. Non-significance of day-of-the-week effect in returns of Bitcoin and some other cryptocurrencies further support market efficiency of these markets.
    Keywords: Bitcoin; Day-of-the-week Effect; Cryptocurrency; Market efficiency
    JEL: C2 C22
    Date: 2019–01–12
  13. By: Saito, Nagayuki
    Abstract: In order to discuss the future direction of policy making for protecting children online, this paper discusses the effectiveness of protection policies based on libertarian paternalism from the standpoint of behavioral economics by referring to the efforts of the Kariya authorities, Aichi Prefecture. In particular, this paper discusses the effects of setting a default rule as a countermeasure to the human heuristic decision making process with a fear that making irrational decisions causes parents and children to adopt a passive stance towards policy. This paper specifically analyzes whether the efforts functioned as libertarian paternalism and the cut-off time of "9pm" was reasonable for parents as a default time. Furthermore, in the case where child protection has been carried out from the perspective of paternalism, this study considers whether children and parents adjust their behavior.
    Keywords: Internet,Mobile Phone,Youth Protection Policies,Behavioral Economics,Libertarian Paternalism
    Date: 2018
  14. By: Hong, Yoorim
    Date: 2018
  15. By: Galpaya, Helani; Senanayake, Laleema
    Abstract: Nature of the work done is changing due to the advancement of information and communication technology. To gain the advantage of lower cost in developing countries business processes were outsourced from developed to developing countries by organizations during the late 20th and early 21st century. Now, with the digital economy2 work is outsourced by organizations as well as individuals to anyone, anywhere around the globe over platforms or apps. These work are known as gig work/ cloud work. This research explored potential for gig work in India, Sri Lanka and Myanmar in terms of the labour market trends of these countries. It also looked at enabling factors and challenges of involving in gig work by online freelancers/ digital workers.
    Keywords: Online freelancing,micro-work,digital labour,gig work,cloud work,India,Sri Lanka,Myanmar
    Date: 2018
  16. By: Santiago Fernández de Lis; Pablo Urbiola
    Abstract: La transformación digital ha abierto el mercado de servicios financieros a nuevos tipos de proveedores, incluidas las grandes empresas tecnológicas, que presentan un gran potencial disruptivo. Este artículo explora cómo el alcance de esa integración está condicionado por la regulación, las normas de acceso a datos y la política de competencia.
    Keywords: Documento de Trabajo , Regulación Digital , Tendencias Digitales , Economía Digital , Regulación financiera , Global
    JEL: G20 K20 L40 L86
    Date: 2019–01
  17. By: Jirakasem, Monarat; Mitomo, Hitoshi
    Abstract: This research aims to examine the relation between Over-The-Top (OTT) services and mobile telephony. It will also investigate factors affecting customer use of OTT services. Such services have been increasing in terms of revenue and intensity of usage; conversely, revenue from mobile telephony has been declining. As a result, many analysts expect that OTT services may soon replace mobile telephony. Nonetheless, empirical research regarding this assumption is scarce, particularly in the case of Thailand. Thus, this research aims to explore the claim regarding substitution between those two communication services. The research relies on survey data collected in 2014 by NBTC, and comprises 4,716 observations. OTT services in Thailand were found to be complimentary to mobile telephony usage (p-value
    Keywords: Over-The-Top (OTT) services,Mobile telephony,Thailand,Substitution effect
    Date: 2018
  18. By: van der Vorst, Tommy; Brennenraedts, Reg
    Abstract: While connectivity supply is growing exponentially, likely as a result of developments in the semiconductor industry, research on connectivity has mostly focused on the demand side. Such approach is however unable to account for the introduction of unforeseen ser-vices, which is also supply-driven. In this study we seek to validate the existence of a 'residual' of unexplained growth and quantify it as the difference between supply of con-nectivity and demand from existing service category. The hypothesis is confirmed: an increasing fraction of internet traffic volume expected at high levels of aggregation (i.e. an internet exchange) is unexplained by existing service category growth.
    Keywords: digital connectivity,bandwidth,internet traffic,exponential growth
    Date: 2018
  19. By: Wu, Jun
    Abstract: As China government gives full play to the role of digital technology in driving and leading the development of economy and society, policy issues on China internet governance have gained wide attractions from academics and practitioners. Grounded on a unique textual dataset collected from China official law and regulation database with over 300 central and local government laws and regulations on internet governance released during the period of 1994 and 2017,this study investigates the evolutional characteristics of the policy central topics, policy subjective and policy orientation in the timeframe of 1994 to 2017.This paper contributes to the existing knowledge accumulation not only in its uncovering of the evolutional logic hidden in the large swaths of policy text but also by introducing a computational text analysis approach to facilitate the text oriented policy evaluation.
    Keywords: Internet governance;regulation policy;China,Topic modeling
    Date: 2018
  20. By: Alexander Kleibrink (European Commission - JRC); Nikola Radovanovic (European Commission - JRC); Henning Kroll (Fraunhofer Institute for Systems and Innovation Research ISI); Djerdj Horvat (Fraunhofer Institute for Systems and Innovation Research ISI); Djuro Kutlaca (Institute Mihajlo Pupin); Lazar Zivkovic (Institute Mihajlo Pupin)
    Abstract: The Information and Communication Technologies (ICT) industry is widely recognised as one of key driving forces of contemporary competitiveness. Inside the European Union, ICT are not only seen as a strategic sector, but also as a means to create positive spillovers to other economic sectors and achieve cross-innovation. Under this objective, the European Union supports the enhancement of the ICT industry potential in the Western Balkans, which was recently underlined with the adoption of the Digital Agenda for the Western Balkans. Within this region, Serbia has recorded the strongest growth. The Serbian government recognised digitalisation as priority. However, the environment of the ICT industry in Serbia, mostly referring to regulatory, political and educational frameworks, still needs to be improved. This paper analyses the status quo of the ICT industry in the Western Balkans with a focus on Serbia. It discusses the main challenges and proposes development paths with specific measures to be taken.
    Keywords: EU, Western Balkans, Serbia, ICT, software
    Date: 2018–12
  21. By: OECD
    Abstract: Online advertising is now the dominant form of advertising in many OECD countries, and offers businesses the ability to reach consumers in ways that could only have been imagined previously. Online advertising has the potential to benefit consumers through more relevant and timely advertising, and by funding a host of “free” online services. However, it also raises some new and complex challenges for consumers and consumer protection authorities. This report by the OECD’s Committee on Consumer Policy provides an introduction to the complex landscape that is online advertising. It outlines the potential benefits and risks for consumers, drawing on the behavioural insights literature where relevant.
    Date: 2019–01–14
  22. By: Xia, Jun
    Abstract: Over the past two decades China has achieved eye-catching development in the provision of telephone and Internet services in its vast rural areas. With the literature's lopsided focus on Western nations, a cohesive paradigm in mapping the Chinese style of universal service policy remains elusive, a situation that has often obfuscated deeper understanding of the Chinese case. This present paper proposes and applies an integrated offer–agent–target (OAT) framework in a retrospective and empirical examination of China's universal service practices and characterization of what has appeared to be the Chinese model. In so doing, China's universal service development is demarcated into discernible stages which are then matched with corresponding institutional landscapes. Three stages are identified and corresponding institutional landscapes explicated. Finally, implications are discussed and policy suggestions are made for the Chinese policy-maker.
    Keywords: Telecommunications universal service,Broadband Internet,Universal access,Policy analysis,Chinese model
    Date: 2018
  23. By: Chappell, Daniel
    Abstract: Markov regime-switching (MRS) models, also known as hidden Markov models (HMM), are used extensively to account for regime heteroskedasticity within the returns of financial assets. However, we believe this paper to be one of the first to apply such methodology to the time series of cryptocurrencies. In light of Molnar and Thies (2018) demonstrating that the price data of Bitcoin contained seven distinct volatility regimes, we will �fit a sample of Bitcoin returns with six m-state MRS estimations, with m between 2 and 7. Our aim is to identify the optimal number of states for modelling the regime heteroskedasticity in the price data of Bitcoin. Goodness-of-�fit will be judged using three information criteria, namely: Bayesian (BIC); Hannan-Quinn (HQ); and Akaike (AIC). We determined that the restricted 5-state model generated the optimal estimation for the sample. In addition, we found evidence of volatility clustering, volatility jumps and asymmetric volatility transitions whilst also inferring the persistence of shocks in the price data of Bitcoin.
    Keywords: Bitcoin; Markov regime-switching; regime heteroskedasticity; volatility transitions.
    JEL: C01 C22 C26 C50
    Date: 2018–09–28
  24. By: Benson, Alan (University of Minnesota); Sojourner, Aaron (Federal Reserve Bank of Minneapolis); Umyarov, Akhmed (University of Minnesota)
    Abstract: Just as employers face uncertainty when hiring workers, workers also face uncertainty when accepting employment, and bad employers may opportunistically depart from expectations, norms, and laws. However, prior research in economics and information sciences has focused sharply on the employer’s problem of identifying good workers rather than vice versa. This issue is especially pronounced in markets for gig work, including online labor markets, where platforms are developing strategies to help workers identify good employers. We build a theoretical model for the value of such reputation systems and test its predictions in on Amazon Mechanical Turk, where employers may decline to pay workers while keeping their work product and workers protect themselves using third-party reputation systems, such as Turkopticon. We find that: (1) in an experiment on worker arrival, a good reputation allows employers to operate more quickly and on a larger scale without loss to quality; (2) in an experimental audit of employers, working for good-reputation employers pays 40 percent higher effective wages due to faster completion times and lower likelihoods of rejection; and (3) exploiting reputation system crashes, the reputation system is particularly important to small, good-reputation employers, which rely on the reputation system to compete for workers against more established employers. This is the first clean field evidence of the effects of employer reputation in any labor market and is suggestive of the special role that reputation-diffusing technologies can play in promoting gig work, where conventional labor and contract laws are weak.
    Keywords: Reputation; Labor; Job search; Screening; Contracts; Online ratings; Personnel; Online labor markets
    JEL: D82 J20 J41 K12 K42 L14 L86 M55
    Date: 2018–12–28
  25. By: Kim, Suwon
    Abstract: The entire media market competing for user attention is currently leaning toward snack-media, and it has become an undoubtedly important media industry sector. As its economic impacts grow, the snack-media market structure has become increasingly critical as a national concern. The near-monopolistic market, dominated by the global giant platforms, e.g. YouTube, should not be desirable for all the stakeholders in the local ICT and media industry. Given that network effects potentially reinforce the market dominance of the global giants, differentiation should be the most viable option for the local snack-media platforms. This study aims to segment the snack-media market based on user heterogeneity and to discuss corresponding strategies of the local platforms, adopting Q-methodology. The results revealed five user types, and they were located in a positioning map with two axes of the level of efficiency-pursuit and centered gratification. The local snack-media platforms' counter-strategies were suggested corresponding to the taxonomy.
    Date: 2018
  26. By: Frieden, Rob
    Date: 2018
  27. By: Hurulle, Gayani; Galpaya, Helani; Ababakirov, Azamat
    Abstract: This paper studies the user perceptions of and behaviours pertaining to social privacy on Facebook in Myanmar, drawing on findings of qualitative research from 98 respondents, and an online survey in which 403 responses were received. It explores two elements of the users' behaviour pertaining to social privacy– the means by and the extent to which personal information was shared on the social media platform, and the audiences with whom the information is shared are then examined. The research finds that a number of respondents refrained from publishing their names and photographs on the platform, while individuals with whom they had no offline contact were added to their social network. It finds that the rationales for such decisions had underpinnings pertaining to factors including gender, ethnicity and religion, and were reflective of the socio-political environment in Myanmar at the time of the research.
    Date: 2018
  28. By: Hagiu, Andrei; Jullien, Bruno; Wright, Julian
    Abstract: We explore conditions under which a multiproduct firm can profitably turn itself into a platform by "hosting rivals", i.e. by inviting rivals to sell products or services on top of its core product. Hosting eliminates the additional shopping costs to consumers of buying a specialist rival's competing version of the multiproduct firm's non-core product. On the one hand, this makes it easier for the rival to compete on the non-core product. On the other hand, hosting turns the rival from a pure competitor into a complementor: the value added by its product now helps raise consumer demand for the multi-product firm's core product. As a result, hosting can be both unilaterally profitable for the multi-product firm and jointly profitable for both firms.
    JEL: D4 L1 L5
    Date: 2018–11
  29. By: Oh, Jeong Hun
    Abstract: This paper explores the remarkable roles of exchange rates when a cryptocurrency is adopted and commonly used as another type of foreign currency in the international economy. First, in order to examine its movement, we describe the price of a cryptocurrency as the relative price in terms of a standard currency using the exchange rate formula. Second, we identify three determinants of the "Kimchi premium" from the equilibrium condition in the foreign exchange market: the gaps in the rates of return of the cryptocurrency, the interest rates of the standard currencies, and the expected cryptocurrency exchange rates. Finally, using the money market and the foreign exchange market rationalities, we demonstrate the process that the new cryptocurrency in a country can cause a rise in the money supply, a fall in the interest rate, and a rise in the exchange rate in the end.
    Keywords: Cryptocurrency,"Kimchi premium," Exchange rate,Interest Rate
    Date: 2018
  30. By: Yuri Rykov (National Research University Higher School of Economics); Yadviga Sinyavskaya (National Research University Higher School of Economics); Olessia Koltsova (National Research University Higher School of Economics)
    Abstract: Social capital is often accumulated not only in ego-networks, but in larger communities. However, these communities, although seemingly visible through social media, are still under-researched. In this work, we examine àn online friendship network spanning over an entire middle-size city amounting to 194,601 users of VK social network site. We find that the share of user’s in-city friends contributes to his/her brokerage and information influence abilities. More importantly, the number of user’s online groups - that is, user’s access to diverse or disconnected communities - is positively related with his/her bridging capital, and negatively with the bonding capital. Finally, our research questions the validity of some of the existing social capital measures.
    Keywords: social capital, social network sites, VKontakte, friendship, online user behavior, online communities
    JEL: Z19
    Date: 2018
  31. By: Nemoto, Naoko (Asian Development Bank Institute); Huang, Bihong (Asian Development Bank Institute); Storey, David (Asian Development Bank Institute)
    Abstract: Globally, the regulation of P2P lending has evolved significantly in recent years, with mostly beneficial effects on the diversification of funding for individuals and corporations. Regulatory responses have varied greatly between countries, and the characteristics of the markets that have emerged vary as a result. We describe and evaluate the range of P2P lending systems on offer to small and medium-sized enterprises (SMEs) in several countries, considering different regulatory regimes. In some countries, there are problematic incentives for platforms that rate credit and originate loans without holding the risk of these loans. In addition, when investor returns are guaranteed by platforms, investors have no incentive to distinguish among risk categories. In several countries, notably the People’s Republic of China, P2P platforms have engaged in fraudulent behavior and Ponzi-like schemes. On the other hand, stringent regulation in the United States has excessively impeded new entrants from providing competition to established platforms. Regulators should be mindful of these risks and others, while also seeking to capitalize on the benefits that the sector offers for providing new funding opportunities to SMEs. In our view, the United Kingdom can be suggested as an effective model to follow because of its tailor-made and flexible regulation.
    Keywords: fintech; P2P lending; regulation
    JEL: F34 G23
    Date: 2019–01–02
  32. By: Susan Aaronson (George Washington University)
    Abstract: In 2017, the three signatories of NAFTA — Canada, Mexico and the United States — agreed to update the agreement to include a new “digital trade chapter.†The renegotiation of NAFTA presents a continent-wide opportunity to encourage new sectors built on cross-border data flows, while simultaneously preserving domestic policy space to regulate such sectors. Canada, Mexico and the United States can make NAFTA the first digital economy trade agreement. All three nations should agree to: →→ clarify the rules governing crossborder data flows; →→ encourage the free flow of information and protect personal data, while also promoting internet openness and stability; and →→ address new technologies as well as future trade barriers by including language that is technologically neutral (for example, not favouring specific technologies or regulatory approaches)
    Keywords: NAFtA, FTA, digital trade, artificial intellgience, data
    JEL: F1 F5
    Date: 2018–12
  33. By: Shihao Gu; Bryan Kelly; Dacheng Xiu
    Abstract: We synthesize the field of machine learning with the canonical problem of empirical asset pricing: measuring asset risk premia. In the familiar empirical setting of cross section and time series stock return prediction, we perform a comparative analysis of methods in the machine learning repertoire, including generalized linear models, dimension reduction, boosted regression trees, random forests, and neural networks. At the broadest level, we find that machine learning offers an improved description of expected return behavior relative to traditional forecasting methods. Our implementation establishes a new standard for accuracy in measuring risk premia summarized by an unprecedented out-of-sample return prediction R2. We identify the best performing methods (trees and neural nets) and trace their predictive gains to allowance of nonlinear predictor interactions that are missed by other methods. Lastly, we find that all methods agree on the same small set of dominant predictive signals that includes variations on momentum, liquidity, and volatility. Improved risk premia measurement through machine learning can simplify the investigation into economic mechanisms of asset pricing and justifies its growing role in innovative financial technologies.
    JEL: C45 C58 G11 G12
    Date: 2018–12
  34. By: Li, Tian; Fei, Fang; Yanqing, Hong
    Date: 2018
  35. By: Lee, Sangwon; Lee, Seonmi; Joo, Hye Min
    Abstract: Employing fixed effects regression models, this study examines influential factors of OTT video market growth in 50 countries. The results suggest that Netflix market entry, OTT market concentration, traditional pay TV market size, mobile broadband infrastructure, and income contribute to the market growth of OTT video services. The country-level analysis also demonstrates that traditional pay TV subscription markets and OTT markets are growing together initially in many countries. However, the finding also reveals the negative association between OTT revenue growth rate and subscription revenue growth rate of traditional pay TV service, which implies that OTT video services can potentially substituting for traditional pay services such as cable TV and IPTV in the long-term.
    Keywords: Over-the-Top video,Market growth,Netflix effect,OTT-pay TV platform competition,Mobile broadband infrastructure
    Date: 2018
  36. By: Mark Hilton (Eunomia); Chris Sherrington (Eunomia); Andrew McCarthy (OECD); Peter Börkey (OECD)
    Abstract: Extended producer responsibility or product stewardship is a policy approach that aims to increase waste recovery and recycling. Extended producer responsibility (EPR) systems aim to make producers responsible for the environmental impacts of their products throughout the product chain, from design to the end-of-life phase. This report focuses on free-riding of producers or retailers, which the fast expansion of online sales in recent years has been exacerbating. Online sales are creating new free-riding opportunities as consumers are able to buy more easily from sellers in other countries. These sellers often have no physical, legal entity in the country where the consumer resides, and are not registered with national or local EPR schemes.
    Keywords: circular economy, Extended producer responsibility, free-riding, product stewardship, resource efficiency, waste management
    JEL: Q53 Q58
    Date: 2019–01–23
  37. By: Nien, Wei Ling
    Abstract: This paper underlines social media enterprise graffiti arts, through self-mediation to transform the meaning of popular culture. Methodology applied together semiology and literature review. In order to understand the logic of social media that the mediation opportunity structure, methodology is focused on the way of analysing images by Roland Barthes. The project includes Banksy's graffiti that represents anti-war. The result shows that the graffiti represents the meaning of popular culture, it has to be involved in social system (e.g. the formation of graffiti, political concepts, and anti-war) through self-mediation representing popular culture, and the importance of social media on the role of discursive public sphere. We cannot ignore the logic of self-mediation where it creates a field of opportunities for discursive identity. At the same time, pro and cons for social media should also be taken into account.
    Keywords: self-mediation,social media,semiology
    Date: 2018
  38. By: Koo, Hyunmo
    Date: 2018
  39. By: Rusche, Christian; Scheufen, Marc
    Abstract: The significance of data as an economic good in the digital economy quickly raises the question of who owns the data. More specifically, within the context of a data marketplace in which data is being exchanged or traded and where different bundles of rights (property rights) are trans-ferred (contract law) - an answer regarding the genuine assignment of property rights for data seems important. From an economic standpoint, this paper investigates the need for an (new) intellectual prop-erty right for data. Firstly, an overview of the status quo of the literature on property rights for data will be provided. This will be followed by an analysis of the characteristics of data as a good, clarifying the circumstances under which a market failure can occur. Accordingly, only a market failure situation will authorise economic policy intervention. Lastly, we will derive specific policy implications, offering economic reasoning on a new intellectual property right for data and spe-cifically pointing to other forms of law that may be more applicable for reaching an efficient allocation of data resources.
    JEL: D23 K11 K12
    Date: 2018
  40. By: Mabuma, Joffrey
    Date: 2018
  41. By: Ton, Quoc-Thai
    Abstract: This dissertation examines the impact of social and traditional media on capital markets. The empirical tests focus on investor sentiment which, for example, can be captured by postings on social media platforms, innovative news databases and the textual analysis of traditional media press. The research direction of this dissertation implicitly questions the assumptions stated by the traditional finance theory. Our new empirical findings and their explanations are, hence, closely linked with the behavioral finance theory. The Efficient Market Hypothesis constitutes one of the fundamental pillars of the traditional finance theory. In this concept, the availability of information is the basic requirement for the functionality of efficient capital markets. New information is quickly and correctly incorporated into an asset’s price. The new price of an asset, therefore, immediately reflects the updated fundamental value (Fama, 1969; 1970). However, various studies have recently shown that stock market movements are not always associated with rational information about an asset’s value. The observation of over- and underreaction of asset prices to news signals or distinctive return patterns gave reason for the gaining importance of the behavioral finance theory since the 1990’s. The changing availability and the easier access to information for institutional and individual investors play an important role in this recent development. For example, Figure 1 1 (p. 3) depicts the circulation of US newspapers between 1970 and 2017. The number of households covered by traditional media press decreased from more than 60 million to around 30 million households in 2017. The establishment of the internet, on the other hand, parallelly accelerated the digital development in the media landscape. Figure 1 3 (p. 5) describes the global development of social media users since 2010. The number of social media users is expected to increase from 1 billion users in 2010 to around 3 billion users in 2021. This development not only affects the society but also a specific focus group of this dissertation: the financial investors. The way investors gather, process, and disseminate information also experienced a significant change in recent decades (Puppis et al., 2017). In this connection, the development of investor attention and sentiment for individual assets is sustainably impacted by the digitalization of media channels. Consequently, we derive four fundamental research questions, which accompany the empirical analyses of this dissertation: 1. What role does investor sentiment play in financial markets? Do investors solely follow the market, or do beliefs of investors predict future returns or other market variables? 2. How does (social) media relate to financial markets in the general daily context and specifically around news events, such as earnings or M&A announcements? 3. What kind of firms are more sensitive to investor sentiment than others? 4. Does arbitrage stabilize financial markets against noise traders? The following structure of this dissertation aims to answer these questions in the best possible way: The first chapter introduces the reader to the relevance of the topic and the leading research questions of the dissertation. The second chapter lays the theoretical foundation and describes the fundamental concepts of the traditional and also the behavioral finance theory, which aims to comprehensively explain selected market anomalies. Also, we summarize selected psychological concepts that help to explain irrational actions of investors, which potentially cause market volatility and asset prices to deviate from their fundamental value. Literature reviews on investor sentiment in close relationship with traditional and social media complete the second chapter. The third chapter encompasses the first empirical work of this dissertation and primarily explores the impact of social media on capital markets. The empirical analysis falls back to more than 4.5 million posts on the leading Australian financial internet message board HotCopper between January 2008 and May 2016. The findings suggest that social media activity is price relevant for capital markets. Positive investor sentiment, for example, is in this connection contemporaneously and significantly correlated with a stock’s abnormal return. However, the effect diminishes after one month. Arbitrage of presumably informed investors only partially countervail this effect. Postings by individual investors on social media, hence, cause capital markets to overreact to potentially non-relevant information in the short-term. However, negative investor sentiment expressed in internet message boards provides a differentiated picture. Negative investor sentiment is significantly related with the next month’s abnormal returns. Also, an increasing rate of agreement on negative investor sentiment before earnings announcements forecasts negative earnings surprises. Both findings support the information hypothesis that negative internet message board postings contain value-relevant information. The question whether social media activity induces market volatility remains ambiguous. The Granger-tests and the reactions of the impulse-response functions show a bilateral relationship between return volatility and the number of internet message board postings. However, we find in this context that individual investors react more sensitive to market volatility on social media than the other way around. In summary, the results of the first empirical work provide evidence for the economic significance of investor sentiment measured on social media and its asymmetric role in capital markets. We extend the empirical analysis in the fourth chapter of this dissertation and investigate the impact of traditional and social media on target price run-ups before bid announcements. The literature previously documented an increase in the target stock price two months prior to the official bid announcement (e.g., Keown and Pinkerton, 1981). This phenomenon is also referred to as the target run-up. One group of researchers find explanations within the insider hypothesis (leakage of insider information prior to the bid announcement). Another group argues based on the market expectation hypothesis (the market anticipates publicly available information to predict upcoming mergers). Our second empirical work considers 2,765 bid announcements in Australia between January 2008 and August 2015. We use more than 15 thousand news articles, more than 80 thousand posts on the internet message board HotCopper, analyst recommendations, and Google search queries to analyze their relationship with target run-ups before official bid announcements. Thus, we specifically examine the varying impact of investor attention of different investor groups (institutional and individual investors) on target run-ups. The results let us conclude that target run-ups of smaller, unprofitable, and growth firms are significantly related with social media coverage on HotCopper. On the contrary, similar firms that lack media coverage do not experience a significant target run-up prior to a bid announcement. Target run-ups of larger capitalization stocks are, on the other hand, more sensitive to analyst recommendations. The results are consistent with the anecdotal evidence that smaller firms are usually less covered by analysts. Social media closes the information gap for small firms in this perspective. Google search inquiries for target firms are not found to be significantly related to target run-ups. The overall findings of the second empirical work support the market expectation hypothesis. In this regard, social media contributes to the increase of market efficiency and partially closes informational blind spots for smaller firms which might exist due to inefficient allocations of resources or costly information sourcing for smaller firms. The fifth chapter comprises the last empirical work of this dissertation and explores the relationship between media press sentiment and capital markets. We specifically examine the im-pact of aggregated news sentiment indices on the cross-section of returns in the asset pricing context. The literature around asset pricing especially focuses on the determination of risk premia that help to explain stock returns. A central question of our third empirical work is, therefore, whether stock returns are associated with their underlying risk or whether these returns are just a result of irrational market movements in the spirit of the behavioral finance theory. We calculate monthly aggregated news sentiment indices based on more than 120 million unique classified news articles from the Ravenpack News Analytics database between 2000 and 2017. Thus, we construct monthly zero-investment portfolios that go long on (sell) stocks which exhibit on average positive (negative) news sentiment in the previous month. The portfolio yields an annual return of 7.5% even if we control for widely-accepted risk fac-tors, such as market, size, momentum, liquidity, profitability, and investments. The results are mainly driven by positive news sentiment. Hence, we refer this premium to the “premium on optimism”. One possible explanation could be the persistent positive news coverage in the respective time period. The probability of the publication of good news is in particularly high-er if a firm experienced positive news in the prior months. The total results of our third empirical work support the view that news sentiment reflects a risk factor. The overall results of this dissertation have several implications for firms, investors, regulators and researchers in the field of behavioral finance. Firms must learn today to early anticipate crowd movements on (social) media and to deal with putatively fake news. The investor relations department of a firm must engage in this topic more sophistically content-wise and in the communicative interaction with its stakeholders. Selective communication strategies for specific firm events are required to early prevent a potentially negative public perception of the firm. Fake news and volatile markets are also gaining in importance for regulators. The identification of manipulative activities or the stabilization of financial markets in the presence of ambiguous information is of special interest for regulators. This task is even more relevant in the time of increased digitalization of media channels and the networks behind them. The more important is, hence, a better understanding of the stakeholders in financial markets and their actions for the functionality of efficient markets. Finally, the results of this dissertation create new connection points for future research. The asymmetric role of investor sentiment and its underlying mechanism are still controversial and elusive. Current studies especially fail to shed light on the long-term impact of investor sentiment on capital markets. This dissertation, hence, provides a substantiated baseline for future empirical work. Also, this work could not fully answer the question in which situation investors specifically use different media channels for information sourcing and dissemination. An intraday-based analysis on various media channels could provide new answers to this question. In summary, this dissertation shows that investor sentiment is an integral part of today’s financial markets and its important role cannot be anymore neglected by advocates of the traditional finance theory.
    Date: 2019

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