|
on Payment Systems and Financial Technology |
|
Issue of 2020‒03‒30
28 papers chosen by |
| By: | Kim Huynh; Jozsef Molnar; Oleksandr Shcherbakov; Qinghui Yu |
| Abstract: | In recent years, there have been rapid technological innovations in retail payments. Such dramatic changes in the economics of payment systems have led to questions regarding whether there is consumer demand for cash. The entry of these new products and services has resulted in significant improvements in the characteristics of existing methods of payment, such as tap-and-go technology or contactless credit and debit cards. In addition, the introduction of decentralized digital currencies has raised questions about whether there is a need for a central bank digital currency (CBDC) and, if so, what its essential characteristics should be. To address these questions, we develop and estimate a structural model of demand for payment instruments. Our model allows for rich heterogeneity in consumer preferences. Identification of the distribution of consumer heterogeneity relies on observing individual-level consumer decisions at the point of sale. Using parameter estimates, we conduct a counterfactual experiment of an introduction of CBDC and simulate post-introduction consumer adoption and usage decisions. We also provide insights into the potential welfare implications of the introduction of new payment instruments. |
| Keywords: | Bank notes; Digital currencies and fintech; Financial services |
| JEL: | C51 E42 L52 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:20-7&r=all |
| By: | Metzger, Martina; Young, Brigitte |
| Abstract: | This paper first explores the role of digital financial services, e.g. mobile money systems and cryptocurrency-based systems, and their impact on the choice of migrants to send remittances. Secondly we discuss whether alternative remittances sending channels increase access to financial services for remittance-sending and remittance-receiving households. Africa, and in particularly Kenya, arepioneers in alternative money transfer systems and of tailor-made regulatory initiatives to address digital financial services. Thus,our paper focuses on the technologies of the Kenyan mobile money system, M-Pesa, and the major cryptocurrency, Bitcoin,and based on that takes into account selected experiences of other Sub-Saharan African countries. We find that in comparison to traditional remittances sending channels, mobile money transfer channels are often superior in terms of service-related features as costs of transfers for sending and receiving households, speed of delivery, availability and access to the remittances by receiving households or security of transactions. More importantly,mobile cash systems can fulfil the SDG goal of the 3 per cent fee more than 10 years earlier than envisaged in 2030. On the other side, the choice to use a specific transfer channel might be restricted by the lack of physical and technological availability of providers and means, and technological illiteracy. In addition, sending and receiving households might be cautious to use mobile cash system due to a lack of trust in the system, the providersor regulatory authorities. Accordingly, financial inclusion beyond e-payments and outreach to the poor is not an automatism. In contrast, the use of Bitcoin-based transfer systems is more ambivalent; these systems are technically more challenging both in terms of infrastructure and literacy and more vulnerable to fraud. Some findings also indicate that Bitcoin is anincompleteand inferior substitute to which migrants refer to if their first option is not available or suffers from severe deficiencies. Future research also needs to differentiate sending and receiving households stronger according to personal features in order todeepen our understanding about the choices of and restrictions of vulnerable groups who would benefit the most from using mobile cash systems. |
| Keywords: | Remittances,Financial Inclusion,Bitcoin,Alternative Money,Financial Technology,Africa,Mobile Cash |
| JEL: | F24 G23 G28 O16 O19 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:1362020&r=all |
| By: | Walter Engert; Ben Fung |
| Abstract: | A number of questions can arise when considering the implications of a cashless society. This note considers whether cash is necessary for a uniform currency. |
| Keywords: | Bank notes; Digital Currencies and Fintech; Financial services; Payment clearing and settlement systems |
| JEL: | E42 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:20-7&r=all |
| By: | Michael Sockin; Wei Xiong |
| Abstract: | We model a cryptocurrency as membership in a decentralized digital platform developed to facilitate transactions between users of certain goods or services. The rigidity induced by the cryptocurrency price having to clear membership demand with supply of token by speculators, especially with strong complementarity in membership demand, can lead to market breakdown. While user optimism mitigates the market fragility by increasing user participation, speculator sentiment exacerbates it by crowding users out. Informational frictions attenuate the risk of breakdown by dampening price volatility and platform performance. Furthermore, the users' anticipation of losses from strategic attacks by miners exacerbates the market fragility. |
| JEL: | G19 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26816&r=all |
| By: | Taurai Muvunza |
| Abstract: | We investigate the behaviour of cryptocurrencies' return data. Using return data for bitcoin, ethereum and ripple which account for over 70% of the cyrptocurrency market, we demonstrate that $\alpha$-stable distribution models highly speculative cryptocurrencies more robustly compared to other heavy tailed distributions that are used in financial econometrics. We find that the Maximum Likelihood Method proposed by DuMouchel (1971) produces estimates that fit the cryptocurrency return data much better than the quantile based approach of McCulloch (1986) and sample characteristic method by Koutrouvelis (1980). The empirical results show that the leptokurtic feature presented in cryptocurrencies' return data can be captured by an ${\alpha}$-stable distribution. This papers covers predominant literature in cryptocurrencies and stable distributions. |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2002.09881&r=all |
| By: | Emiliano Delfau |
| Abstract: | Es sabido que en Argentina, contrariamente a la región, el crédito interno sobre PBI históricamente se encontró en niveles bajos. Analizando los últimos diez años podemos ver que el país fluctuó siempre entre un 12 y 15% de bancarización respecto al PBI (Banco Mundial, 2017). Asimismo, encontramos que el sector micro informal de la estructura productiva alcanzó el 49,3% hacia fines de 2018 (UCA, 2018). Esto nos muestra que el desafío no es solo bancarizar a la población no bancarizada sino, además, lograr bancarizar a parte de la población del sector micro informal. De esta manera estaríamos no solo abordando un proyecto de inclusión financiera, sino que asimismo trataríamos de minimizar el uso de efectivo por otros medios de pago y transacciones. No obstante las características mencionadas anteriormente, la Argentina si se encuentra dentro de las tendencias tecnológicas mundiales y, por lo tanto, el país cuenta con un “ecosistema” tecnológico que le permitiría afrontar los desafíos antes mencionados. Bajo la premisa de “todo dato es dato crediticio” se plantea la creación de una plataforma o banco con abordaje 100% digital cuyo motor principal sea un score de crédito basado en análisis de Big Data y técnicas de Machine Learning. Finalmente se enumeran algunos casos de éxito sobre este nuevo modelo de negocio mediante la aplicación de Big Data y técnicas de Machine Learning |
| Keywords: | Inclusión Financiera, Big Data, Fintechs, Datos no Estructurados, Analytics, Scoring, Recnología Digital, Banca Digital |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:cem:doctra:716&r=all |
| By: | Hiroshi Matsushima (Faculty of Economics, The University of Tokyo); Shunya Noda (Faculty of Economics, The University of Tokyo) |
| Abstract: | We study the design of self-enforcing mechanisms that rely on neither a trusted third party (e.g., court, trusted mechanism designer) nor a long-term relationship. Instead, we use a smart contract written on blockchains as a commitment device. We design the digital court, a smart contract that identifies and punishes agents who reneged on the agreement. The digital court substitutes the role of legal enforcement in the traditional mechanism design paradigm. We show that, any agreement that is implementable with legal enforcement can also be implemented with enforcement by the digital court. To pursue a desirable design of the digital court, we study a way to leverage truthful reports made by a small fraction of behavioral agents. Our digital court has a unique equilibrium as long as there is a positive fraction of behavioral agents, and it gives correct judgment in the equilibrium if honest agents are more likely to exist than dishonest agents. The platform for smart contracts is already ready in 2020; thus, self-enforcing mechanisms proposed in this paper can be used practically, even now. As our digital court can be used for implementing general agreements, it does not leak the detailed information about the agreement even if it is deployed on a public blockchain (e.g., Ethereum) as a smart contract. |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2020cf1145&r=all |
| By: | Sangyup Choi (Yonsei Univ); Junhyeok Shin (Yonsei Univ) |
| Abstract: | While the many commonalities shared by Bitcoin and gold raise a question of whether Bitcoin is a safe-haven like gold, relevant empirical evidence to date is mixed. Unlike existing empirical studies, we derive a simple estimable model of Bitcoin price dynamics from the quantity equation, which allows for structural interpretation of our findings; we then estimate the dynamic effects of macro factors, including income, inflation, and interest rates on Bitcoin prices at a weekly frequency. Unlike gold, Bitcoin prices are vulnerable to financial risk or uncertainty shocks, which is inconsistent with safe-haven quality. When the empirical model is augmented with Bitcoin-specific variables, such as its supply, transactions, and velocity, a major share of Bitcoin price dynamics is explained by these variables. We also find an interesting nonlinearity in the drivers of Bitcoin price dynamics between bullish and bearish market: the role of Bitcoin-idiosyncratic shocks increases when it appreciates, while the effects of macro factors dominate when it depreciates. |
| Keywords: | Cryptocurrencies; Bitcoin; safe-haven; gold; quantity equation; Vector Autoregressions |
| JEL: | E41 E44 F31 G10 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:2020rwp-167&r=all |
| By: | Jean-Philippe Berrou (LAM - Les Afriques dans le monde - CNRS - Centre National de la Recherche Scientifique); Kevin Mellet (SENSE - Sociology and Economics of networks and Services - France Telecom R&D) |
| Abstract: | The rapid growth of mobile phones in Africa has generated widespread enthusiasm. This is evidenced by the reports and programmes of development aid institutions and by the recent creation of a "community" bringing together researchers, NGOs, donors and companies around new technologies for development (Information and Communication Technologies for Development or ICTD). In the first article of this issue of Réseaux devoted to recent research on the use of mobile technologies in sub-Saharan Africa, we review the situation. Has the mobile kept its promises? What do we know about its actual uses in sub-Saharan Africa? The article reports on a significant gap between the promises of international programmes or economic forecasts, and the reality of practices and usage. It presents the articles in the special issue, which highlight the importance of mobile phones in the daily lives of populations, as well as the plurality and complexity of the actual take up of this technology and its significance for the continent. |
| Abstract: | L'essor du mobile en Afrique a suscité un enthousiasme fort, dont témoignent tant les rapports et programmes des institutions de l'aide au développement, que la constitution récente d'une « communauté » rassemblant chercheurs, ONG, bailleurs et entreprises autour des nouvelles technologies pour le développement (Information and communication technologies for development ou ICTD). En ouverture de ce numéro qui rassemble des recherches récentes sur les usages des technologies mobiles en Afrique subsaharienne, nous proposons un état des lieux. Le mobile a-t-il tenu ses promesses ? Que sait-on de ses usages concrets en Afrique subsaharienne ? L'article rend compte d'un décalage important entre les promesses des programmes internationaux ou des prévisions économiques, et la réalité des pratiques et des usages. Il introduit les articles du dossier qui mettent en évidence tant l'importance qu'occupe le téléphone mobile dans le quotidien des populations, que la pluralité, et la complexité, des modalités d'appropriations effectives et des enjeux qu'il soulève pour le continent. |
| Keywords: | usages,analyses d'impact,ICTD,Mobile,Afrique subsaharienne,Nouvelles technologies pour le développement |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02506830&r=all |
| By: | Evans, Olaniyi |
| Abstract: | This study investigates the relationship between blockchain technology and the financial market. The US and China are used as case studies for the 2008–2016 period using fully modified least square and Toda-Yamamoto causality technique. The estimates show that blockchain technology has positive and significant relationship with the financial market in the US and China. In other words, the higher the levels of blockchain innovation in these countries, the more developed the financial markets. This suggests that the presence of blockchain innovation in financial markets spurs financial development. Blockchain innovation is therefore a positive significant factor for well-developed financial markets. The findings also indicate that macroeconomic factors such as lagged financial development, GDP per capita, the growth rate of GDP, FDI and trade openness have significant and positive relationship with financial development in the two countries. Among the institutional variables, government effectiveness has significant and positive effects only in the US. |
| Keywords: | Blockchain technology; bitcoin; smart contracts; financial markets |
| JEL: | E2 F3 O3 |
| Date: | 2018–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99212&r=all |
| By: | Nikolaos Misirlis (University of Macedonia [Thessaloniki]); George Lekakos (AUEB - Athens University of Economics and Business); Maro Vlachopoulou (Department of Applied Informatics [University of Macedonia] - University of Macedonia [Thessaloniki]) |
| Abstract: | In this study we identify potential associations between people's personality (utilizing the popular Big Five personality model) and measurable Facebook activities such as number of likes received, number of posts, number of comments on posts. Extant literature suggests that personality can be manifested through different features of the Facebook profiles but under an implicit assumption that those users may belong in a single psychographic group. However, it has been shown that people may share characteristics, common acts and behaviors of more than one psychographic group. In this study we aim to address limitations of previous studies, by adopting a fuzzy set approach which is capable to handle users' membership in multiple psychographic groups. Furthermore, fsQCA offers equifinality, which means that research can end up to the same outcome, beginning from different initial combinations of data. The work presented here provides empirical evidence concerning the association between Facebook activities and users' personalities in a novel way indicating the significance of this relationship and providing alternative combinations that lead to the same output. Furthermore, it paves the ground towards predicting social platforms' measurements, other than Facebook, relying on users' personalities, using the same technique but on different fields of study and social media platforms. |
| Keywords: | Facebook measurements,personality traits,Big Five,fsQCA,Facebook |
| Date: | 2018–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02462389&r=all |
| By: | Ryan Martin |
| Abstract: | Online shopping is often guided by search platforms. Consumers type keywords into query boxes, and search platforms deliver a list of products. Consumers' attention is limited, and exhaustive searches are often impractical. Thus, the order in which products appear in search results affects the products consumers discover and ultimately purchase. In this setting, I study the identification of consumer-welfare changes in response to exogenous changes in search-result lists. I focus on the case of consumers engaging in costly searches for a single, indivisible (discrete) product among a collection of substitutes. I show that exact consumerwelfare changes—that is, compensating variation and equivalent variation—can be calculated with the use of straightforward integrals of the aggregate demand. I apply my results to shopping data provided by an online travel agency (OTA). I estimate that when the OTA changes search results from random to its proprietary listing structure, welfare improves by an average of $8.84 per user. I estimate an average welfare loss of $20.51 per user when the OTA removes the top five products from all of its search-result lists. |
| Keywords: | Econometric and statistical methods; Market structure and pricing |
| JEL: | C14 D83 L40 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:20-5&r=all |
| By: | Cammaerts, Bart; Mansell, Robin |
| Abstract: | This article considers challenges to policy and regulation presented by the dominant digital platforms. A radical democratic framing of the deliberative process is developed to acknowledge the full complexity of power relations that are in play in policy and regulatory debates and this view is contrasted with a liberal democratic perspective. We show how these different framings have informed historical and contemporary approaches to the challenges presented by conflicting interests in economic value and a range of public values in the context of media content, communication infrastructure and digital platform policy and regulation. We argue for an agonistic approach to digital platform policy and regulatory debate so as to encourage a denaturalization of the prevailing logics of commercial datafication. We offer some suggestions about how such a generative discourse might be encouraged in such a way that it starts to yield a new common sense about the further development of digital platforms; one that might favor a digital ecology better attuned to consumer and citizen interests in democratic societies. |
| Keywords: | digital platforms; media content; communication infrastructure; regulation; deliberation; radical democracy |
| JEL: | R14 J01 |
| Date: | 2020–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:102628&r=all |
| By: | Jean-Philippe Berrou (LAM - Les Afriques dans le monde - CNRS - Centre National de la Recherche Scientifique); Francois Combarnous (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Thomas Eekhout (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Kevin Mellet (SENSE - Sociology and Economics of networks and Services - France Telecom R&D) |
| Abstract: | In sub-Saharan Africa, the vast majority of businesses belong to the so-called "informal" sector. As yet, little is known about their take up of the mobile phone, which suddenly and massively irrupted into their daily operations within less than a decade. This article, which is based on an original study of 500 entrepreneurs in the informal sector in Dakar, combines quantitative and qualitative methods. Its contribution is threefold. First, the study provides broad and detailed empirical insight into the adoption and use of mobile phones by informal entrepreneurs in sub-Saharan Africa. Second, the article draws on an original survey and analysis methodology to propose a robust and comprehensive typology of these entrepreneurs' business uses of mobile phones. Finally, it provides a statistical analysis of the relationship between mobile phone uses and economic performance. Ultimately, this article seeks to contribute to a better understanding of the informal sector and its specific dynamics. |
| Abstract: | En Afrique subsaharienne, l'immense majorité des entreprises appartiennent au secteur dit « informel ». On sait encore peu de choses sur la façon dont elles se sont emparées du téléphone mobile, qui a fait une brusque et massive irruption dans leur quotidien en moins d'une décennie. S'appuyant sur une enquête originale mêlant méthodes quantitatives et qualitatives, auprès de 500 entrepreneurs du secteur informel de Dakar, l'article apporte trois contributions principales. Premièrement, l'enquête apporte un éclairage empirique ample et détaillé sur l'adoption et les usages du mobile par les entrepreneurs informels d'Afrique subsaharienne. Deuxièmement, l'article propose une typologie robuste et compréhensive des usages professionnels du mobile par ces entrepreneurs, à partir d'une méthodologie d'enquête et d'analyse originale. Enfin, l'article restitue une analyse statistique des relations entre usages du mobile et performances économiques. Il s'agit in fine de contribuer à une meilleure connaissance du secteur informel et de ses dynamiques propres. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02506855&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This study investigates the relationship between social media and inclusive human development in 49 African countries for the year 2012. Social media is measured with Facebook penetration whereas inclusive human development is proxied by the inequality- adjusted human development index. The empirical evidence is based on Ordinary Least Squares, Tobit and Quantile regressions. Ordinary Least Squares provided baseline results, Tobit regressions account for the limited range in the outcome variable while Quantile regressions are engaged to control for initial levels of inequality-adjusted human development. From Ordinary Least Squares and Tobit results, Facebook penetration is positively associated with inclusive human development. Quantile regressions confirm this positive nexus and further establish that the positive association is slightly higher in magnitude in the above-median sub-sample. From a comparative assessment, it is apparent that with the exception of the resource-wealth sub-samples, higher levels of Facebook penetration are associated with comparatively higher levels of inclusive human development. Accordingly, the positive association between Facebook penetration and inclusive human development is: (i) a positive function of income levels and (ii) more apparent in Middle East and North African countries (compared to Sub-Saharan African countries), English common law countries (compared to their French civil law counterparts), and coastal countries (in relation to landlocked countries). |
| Keywords: | Social Media; Inclusive development; Income levels; Regions |
| JEL: | D83 O30 D74 D83 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:20/017&r=all |
| By: | Seyha Khek; Phon Sophat (National Bank of Cambodia); Vety Meng |
| Abstract: | This study aims to determine how Information Technology (IT) impacts financial inclusion and strengthens the profit of commercial banks and MDIs in Cambodia using two-stage value chain DEA technique. The model also provides the efficiency score and approached factors within financial inclusion and profitability mechanism. The finding suggests that financial inclusion is backed up by strong significant technology while profitability is anchored at 76.5 percent of total banks' profits. Furthermore, through the usage of IT-based transactions at 32 percent, banks and financial institution could enhance 28 percent of profit, and 78 percent of ATMs has been used to promote the access and financial usage. From these results, improving institutional IT adoption could increase financial inclusion and achieves the profit efficiency. |
| Keywords: | Financial inclusion,Profitability,Technology,two-stage Value Chain DEA |
| Date: | 2020–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02496410&r=all |
| By: | Jay Gupta; Swaprava Nath |
| Abstract: | Skill verification is a central problem in workforce hiring. Companies and academia often face the difficulty of ascertaining the skills of an applicant since the certifications of the skills claimed by a candidate are generally not immediately verifiable and costly to test. Blockchains have been proposed in the literature for skill verification and tamper-proof information storage in a decentralized manner. However, most of these approaches deal with storing the certificates issued by traditional universities on the blockchain. Among the few techniques that consider the certification procedure itself, questions like (a) scalability with limited staff, (b) uniformity of grades over multiple evaluators, or (c) honest effort extraction from the evaluators are usually not addressed. We propose a blockchain-based platform named SkillCheck, which considers the questions above, and ensure several desirable properties. The platform incentivizes effort in grading via payments with tokens which it generates from the payments of the users of the platform, e.g., the recruiters and test-takers. We provide a detailed description of the design of the platform along with the provable properties of the algorithm. |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2003.03540&r=all |
| By: | Francis Bloch (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique); Gabrielle Demange (PSE - Paris School of Economics) |
| Abstract: | We analyze the strategy of a monopolistic Internet platform serving users from two jurisdictions with different corporate tax rates. We show that the platform exploits positive externalities across users to shift profit, and study the effects of a change in the corporate tax rate of one of the two jurisdictions. When externalities flow symmetrically among users in both jurisdictions, the platform increases quantities in the high tax jurisdiction and reduces quantities in the low tax jurisdiction. When externalities only flow from one jurisdiction to another, the platform's response depends on the direction of externalities. If externalities originate in the high tax jurisdiction, the platform increases quantities in the high tax jurisdiction ; if they originate in the low tax jurisdiction, the platform reduces quantities in the low tax jurisdiction. We contrast the baseline regime of separate accounting (SA) with a regime of Formula Apportionment (FA), where the tax bill is apportioned in proportion to the number of users in the two jurisdictions. Under FA, the platform always increases quantities in the lower-tax jurisdiction and decreases quantities in the higher-tax jurisdiction. We use a numerical simulation to show that the higher-tax jurisdiction prefers SA to FA whereas the lower-tax jurisdiction prefers FA to SA. JEL Classification Numbers: H32, H25, L12, L14. |
| Keywords: | Digital platforms,multinational firms,corporate income taxation,Formula Apportionment,separate accounting * |
| Date: | 2020–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02502468&r=all |
| By: | Eleni Mavragani (International Hellenic University); Paraskevi Nikolaidou (International Hellenic University); Efi Theodoraki (International Hellenic University) |
| Abstract: | This paper aims to present a methodology for the segmentation of travelers by studying social media profiles and extracting information on their preferences and demographic traits. Through the study of the sample's social media profiles (Instagram, Facebook, and Twitter), information about travelers' demographics and preferences are combined for the segmentation of the tourists visiting a Greek region. From the analysis of the data, 10 preference-based segments occur, while the cultural-based division corresponds to the main national groups visiting the region. |
| Keywords: | intercultural marketing,customer segmentation,customer profiling,digital marketing,social media |
| Date: | 2019–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02458464&r=all |
| By: | Astebro, Thomas; Fernández, Manuel; Cadena-Silva, Carlos; Vulkan, Nir |
| Abstract: | Do equity crowdfunding investors rationally or irrationally herd? We build a model of rational information aggregation where both informed and uninformed investors arrive sequentially and rationally choose whether and how much to invest. We compare the predictions of the model to several alternative models of irrational herding and no herding, and test those predictions using data on all investments on a leading European equity crowdfunding platform. We show empirically that the size and likelihood of a pledge is causally affected by the size of the most recent pledge, and by the time elapsed since the most recent pledge. These results are consistent with rational information aggregation, and inconsistent with naive herding, independent investments, and common information shocks. However, there is still room for negative information cascades to occur. Implications for platform design and regulatory actions are discussed. |
| Keywords: | Equity crowdfunding; Herding |
| JEL: | D81 D83 G11 G14 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:rie:riecdt:34&r=all |
| By: | Yannis Bakos; Hanna Halaburda |
| Abstract: | A major result in the study of two-sided platforms is the strategic interdependence between the two sides of the same platform, leading to the implication that a platform can maximize its total profits by subsidizing one of its sides. We show that this result largely depends on assuming that at least one side of the market single-homes. As technology makes joining multiple platforms easier, we increasingly observe that participants on both sides of two-sided platforms multi-home. The case of multi-homing on both sides is mostly ignored in the literature on competition between two-sided platforms. We help fill this gap by developing a model for platform competition in a differentiated setting (a Hoteling line), which is similar to other models in the literature but focuses on the case where at least some agents on each side multi-home. We show that when both sides in a platform market multi-home, the strategic interdependence between the two sides of the same platform will diminish or even disappear. Our analysis suggests that the common strategic advice to subsidize one side in order to maximize total profits may be limited or even incorrect when both sides multi-home, which is an important caveat given the increasing prevalence of multi-homing in platform markets. |
| Keywords: | multi-homing, platforms, two-sided platforms, network effects, platform subsidies |
| JEL: | O33 L11 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8126&r=all |
| By: | Jamal Bouoiyour (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour, IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau); Refk Selmi (IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau) |
| Abstract: | The coronavirus epidemic is not the first virus outbreak that has threatened to disturb financial markets. But the world is now more interconnected since the 2003 SARS outbreak as global companies' revenues have become much more exposed to China. The purposes of this paper are threefold. The first is to address the timely question of whether Bitcoin exhibits a safe-haven property against heightened uncertainty over how the duration and spread of the coronavirus could hit the world economy. The second purpose is to assess if the initial news of the coronavirus outbreak have led to an increased volatility of Bitcoin. The third aim is to test if Bitcoin immediately react on publicly announced information (follows the hypothesis of efficient markets). We show that the current bullish sentiment is triggered by investors seeking Bitcoin as a safe haven in the uncertain times ahead. But we also find that the virus intensifies the volatility of Bitcoin due to a search by investors for alternative asset classes amid concerns about the coronavirus. The information regarding the coronavirus takes time to be reflected in the Bitcoin price, highlighting the associated inefficiencies it brings. Also, the risk to global markets may currently be masked owing to wide liquidity injections by Central Banks including the People's Bank of China and the U.S Federal Reserve. |
| Keywords: | Efficiency,Coronavirus,Bitcoin,Safe haven,Volatility |
| Date: | 2020–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02493309&r=all |
| By: | Adam, Martin; Wessel, Michael; Benlian, Alexander |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:119304&r=all |
| By: | Francesco D'Acunto; Thomas Rauter; Christoph Scheuch; Michael Weber |
| Abstract: | We study the spending response of first-time borrowers to an overdraft facility and elicit their preferences, beliefs, and motives through a FinTech application. Users increase their spending permanently, lower their savings rate, and reallocate spending from non-discretionary to discretionary goods. Interestingly, liquid users react more than others but do not tap into negative deposits. The credit line acts as a form of insurance. These results are not fully consistent with models of financial constraints, buffer stock models, or present-bias preferences. We label this channel perceived precautionary savings motives: Liquid users behave as if they faced strong precautionary savings motives even though no observables, including elicited preferences and beliefs, suggest they should. |
| Keywords: | household finance, consumption, behavioral finance |
| JEL: | D14 E21 E51 G21 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8123&r=all |
| By: | Dolnicar, Sara (The University of Queensland); Zare, Samira |
| Abstract: | Has coronavirus disrupted the disruptor? We argue that this is indeed the case, and that this disruption will affect the growth of Airbnb on the long term. The first premise of our prediction is that coronavirus is representative of any kind of major shock that has the potential to affect the tourism industry. The second premise is that the consequences of this super-shock are asymmetric. Different types of hosts will face different types of challenges as a consequence of the sudden and unexpected drop in demand. Investors who are in the business of short term rental to make commercial profits will find themselves in a situation where they still have expenses, but no more income. Some of these investors will re-assess the risk of short-term rental and never return to Airbnb. As a consequence, the supply of Airbnb properties will limit Airbnb growth in future. |
| Date: | 2020–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:t9n6q&r=all |
| By: | Georg Goetz (Justus Liebig University Giessen); Daniel Herold (Justus Liebig University Giessen); Phil-Adrian Klotz (Justus Liebig University Giessen); Jan Thomas Schaefer (Justus Liebig University Giessen) |
| Abstract: | We empirically analyze the role of e-Commerce and brick-and-mortar retailers in discovering new bestsellers in the book market, using the German market as an example. Using an AR(1)-Process, we find that when a title becomes a bestseller sales increase in e-Commerce and decrease in brick-and-mortar stores relative to a title that is not on the bestseller-list. This finding implies that consumers in the online channel respond by increasing sales upon receiving a quality signal (i.e., a title becoming a bestseller). Consumers in the offline channel seem to already know that title so that, compared to a title that is not on the bestseller-lists, sales are decreasing. This might imply that consumers in the offline channel are more likely to read future bestsellers. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202012&r=all |
| By: | J.W.A.M. Steegmans; Jonathan de Bruin |
| Abstract: | In this paper we apply a gravity framework to user-generated data of a large housing market platform. We show that gravity describes the patterns of inflow and outflow of hits (mouse clicks, etc.) from one municipality to another, where the municipality of the user defines the origin and the municipality of the property that is viewed defines the destination. The estimates indicate that even the simplest gravity model explains close to 80 percent of the bilateral flows. By distinguishing serious searchers from recreational searchers we demonstrate that the gravity framework describes search patterns of both types of users. The results indicate that recreational search is centered more around the user's location than serious search. However, this finding is driven entirely by differences in border effects as there is no difference in the distance effect. As such we find no evidence of differences in information frictions between both groups of searchers. |
| Keywords: | online search, gravity model, user-generated data |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1917&r=all |
| By: | Chen,Rong - DECID; Divanbeigi,Raian |
| Abstract: | Despite the commitments of the development community toward broader access to finance, financial inclusion rates worldwide are rather unsatisfactory. To date, around two billion adults do not have access to basic financial services such as savings and checking accounts. Attempting to bridge such gap between policy objectives and outcomes, several economists have probed the determinants of financial inclusion. This paper contributes to the debate by investigating the role played by financial regulation. First, the paper proposes a broad index of regulatory quality for financial inclusion, emphasizing the role of nontraditional delivery models, for example, branchless banking, and actors, for example, nonbank lending institutions. Second, the paper tests the relationship between regulatory quality and financial inclusion outcomes. The analysis finds that in countries where regulatory quality is within the top quartile, individuals are 12.4 percent more likely to have an account at a financial institution with respect to bottom quartile countries. |
| Keywords: | Financial Structures,Financial Sector Policy,Microfinance,Rural Microfinance and SMEs,Banks&Banking Reform |
| Date: | 2019–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:8711&r=all |