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on Payment Systems and Financial Technology |
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Issue of 2021‒01‒18
27 papers chosen by |
| By: | Yiping Huang; Longmei Zhang; Zhenhua Li; Han Qiu; Tao Sun; Xue Wang |
| Abstract: | Promoting credit services to small and medium-size enterprises (SMEs) has been a perennial challenge for policy makers globally due to high information costs. Recent fintech developments may be able to mitigate this problem. By leveraging big data or digital footprints on existing platforms, some big technology (BigTech) firms have extended short-term loans to millions of small firms. By analyzing 1.8 million loan transactions of a leading Chinese online bank, this paper compares the fintech approach to assessing credit risk using big data and machine learning models with the bank approach using traditional financial data and scorecard models. The study shows that the fintech approach yields better prediction of loan defaults during normal times and periods of large exogenous shocks, reflecting information and modeling advantages. BigTech’s proprietary information can complement or, where necessary, substitute credit history in risk assessment, allowing unbanked firms to borrow. Furthermore, the fintech approach benefits SMEs that are smaller and in smaller cities, hence complementing the role of banks by reaching underserved customers. With more effective and balanced policy support, BigTech lenders could help promote financial inclusion worldwide. |
| Keywords: | Fintech;Machine learning;Bank credit;Loans;Credit risk;WP,credit history,Fintech firm,house ownership,internet company,real-time customer rating |
| Date: | 2020–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/193&r=all |
| By: | Wouter Bossu; Masaru Itatani; Catalina Margulis; Arthur D. P. Rossi; Hans Weenink; Akihiro Yoshinaga |
| Abstract: | This paper analyzes the legal foundations of central bank digital currency (CBDC) under central bank and monetary law. Absent strong legal foundations, the issuance of CBDC poses legal, financial and reputational risks for central banks. While the appropriate design of the legal framework will up to a degree depend on the design features of the CBDC, some general conclusions can be made. First, most central bank laws do not currently authorize the issuance of CBDC to the general public. Second, from a monetary law perspective, it is not evident that “currency” status can be attributed to CBDC. While the central bank law issue can be solved through rather straithforward law reform, the monetary law issue poses fundmental legal policy challenges. |
| Keywords: | Central Bank digital currencies;Currencies;Central bank legislation;Legal support in revenue administration;Payment systems;Central Bank Digital Currency,CBDC,Blockchain,Cryptocurrency,Crypto assets,WP,central bank law,monetary unit,book money,digital currency,law reform,token-based CBDC |
| Date: | 2020–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/254&r=all |
| By: | Chikako Baba; Cristina Batog; Enrique Flores; Borja Gracia; Izabela Karpowicz; Piotr Kopyrski; James Roaf; Anna Shabunina; Rachel Elkan; Xin Cindy Xu |
| Abstract: | Europe’s high pre-existing level of financial development can partly account for the relatively smaller reach of fintech payment and lending activities compared to some other regions. But fintech activity is growing rapidly. Digital payment schemes are expanding within countries, although cross-border and pan-euro area instruments are not yet widespread, notwithstanding important enabling EU level regulation and the establishment of instant payments by the ECB. Automated lending models are developing but remain limited mainly to unsecured consumer lending. While start-ups are pursuing platform-based approaches under minimal regulation, there is a clear trend for fintech companies to acquire balance sheets and, relatedly, banking licenses as they expand. Meanwhile, competition is pushing many traditional banks to adopt fintech instruments, either in-house or by acquisition, thereby causing them to increasingly resemble balanced sheet-based fintech companies. These developments could improve the efficiency and reach of financial intermediation while also adding to profitability pressures for some banks. Although the COVID-19 pandemic could call into question the viability of platform-based lending fintechs funding models given that investors could face much higher delinquencies, it may also offer growth opportunities to those fintechs that are positioned to take advantage of the ongoing structural shift in demand toward virtual finance. |
| Keywords: | Fintech;Peer-to-peer lending;Loans;Financial statements;Crowdfunding;lending,payment system,European Union,Payments Directive,PSD2,WP,Fintech company,direct debit,micro-enterprise lending,individual investor,Big-tech company,crowdfunding firm,due diligence,payment company,value chain,venture capital |
| Date: | 2020–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/241&r=all |
| By: | Till Ebner; Thomas Nellen; Jörn Tenhofen |
| Abstract: | Many consumers use payment instruments to control their budget. Previously, such behavior has been associated with checking disposable cash ("pocket watching"). Based on recent survey data, we show that "digital watchers" have emerged, i.e., noncash payers who use digital applications to control their budget. Both watcher types have distinct characteristics. Pocket watchers tend to have lower incomes than other consumers, while digital watchers ascribe low security risk to payment cards. Watching behavior influences current and future payment behaviors. Pocket watchers use cash more intensively than nonwatching cash payers. Digital watchers expect to intensify their reliance on noncash payment instruments more strongly than nonwatching noncash payers. |
| Keywords: | Payment behavior, control motive, pocket watcher, digital watcher, survey data, central bank digital currency |
| JEL: | D14 E41 O33 G20 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:snb:snbwpa:2021-01&r=all |
| By: | Serhan Cevik |
| Abstract: | The coronavirus pandemic is a global crisis like no other in modern times, and there is a growing apprehension about handling potentially contaminated cash. This paper is the first empirical attempt in the literature to investigate whether the risk of infectious diseases affects demand for physical cash. Since the intensity of cash use may influence the spread of infectious diseases, this paper utilizes two-stage least squares (2SLS) methodology with instrumental variable (IV) to address omitted variable bias and account for potential endogeneity. The analysis indicates that the spread of infectious diseases lowers demand for physical cash, after controlling for macroeconomic, financial, and technological factors. While the transactional constraints imposed by the COVID-19 pandemic could become a catalyst for the use of digital technologies around the world, electronic payment methods may not be universally available in every country owing to financial and technological bottlenecks. |
| Keywords: | Communicable diseases;Currencies;COVID-19 ;Deposit rates;Ebola;Demand for cash,currency-in-circulation,digital money,infectious diseases,WP,cash use,handling cash,cash transfer,store of value,infectious-disease outbreak |
| Date: | 2020–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/255&r=all |
| By: | Nicole Jonker; Carin van der Cruijsen; Michiel Bijlsma; Wilko Bolt |
| Abstract: | COVID-19 has temporarily changed the relative cost and benefits of different payment methods: cash has become more costly in terms of health risks, ease of use and likelihood of acceptance, whereas debit card usage has become less costly. As a result, consumers have shifted away from cash. For some, this may speed up the adoption of electronic payment methods, resulting in a permanent change in payment behaviour. Others will return to their preferred payment method once the influence of COVID-19 on our health and daily lives has faded away. Based on unique payment diary survey data collected among a representative panel of Dutch consumers, we study the shift in payment behaviour and payment preferences during the first phase of the COVID-19 pandemic. Since the start of the lockdown in the Netherlands the likelihood of debit card usage at the expense of cash has increased by 13 percentage points. About 60 percent of this shift has persisted seven months after the start of the pandemic in the Netherlands and appears to be longlived. Also, the pandemic has resulted in a shift in payment preferences towards more contactless payments. Both effects are largest for elderly people. |
| Keywords: | COVID-19; consumer payment behaviour; consumption; payment diary data |
| JEL: | D12 E21 E42 O33 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:701&r=all |
| By: | Jeremy Srouji (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, ISS - International Institute of Social Studies (ISS), Erasmus University Rotterdam) |
| Abstract: | Since the oil price downturn of 2015, the United Arab Emirates and fellow Gulf Cooperation Council countries have worked hard to expand digital payments in the interest of improved tax and revenue collection, transparency, and security. Yet despite a deep transformation and diversification of their payment ecosystems and the formalization of plans to become "cashless economies" modelled on South Korea and Sweden, cash continues to dominate payments in both countries. While industry players typically attribute the prevalence of cash in the region to questions of infrastructure readiness, transaction costs, and cyber-security, this paper finds that plans to expand digital payments at the expense of cash may not be well-adapted to countries with high levels of socioeconomic inequality. It proposes a link between socioeconomic inequality and use of cash in emerging economies, and concludes that it may be better to not view the relationship between cash and digital payments in binary zero-sum terms, until there is a better understanding of the socioeconomic , technological, and policy context in which countries like South Korea and Sweden have managed to reduce their reliance on cash in favor of a diversified digital payments ecosystem . |
| Keywords: | digital payments,cashless economy,financial inclusion,complementary currencies,inequality,non-cash transactions,Gulf Cooperation Council,oil economies,remittances |
| Date: | 2020–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03015357&r=all |
| By: | Jurgen Spaanderman |
| Abstract: | This study analyses some fundamental questions about the future of cash. According to the DNB Payments Strategy 2018-2021, the decreasing use of cash is putting pressure on the cash infrastructure. This raises all kinds of questions about the future of cash.1 Until recently, the downward trend of cash use was mainly a result of citizens' own choices, but since the coronavirus crisis they have also increasingly been forced to pay electronically. In this study we investigate the changing role of cash, the extent to which cash is still needed and how we should deal with its decreasing use. We also investigate whether this decreasing use jeopardises the independence of people who depend on cash, and whether the resilience and, consequently, the smooth operation of the payment system would be reduced if the use of cash as a back-up in the event of disruptions in electronic payments was lost Our starting point is DNB's current policy, which focuses on the general acceptance of cash, the availability of a network for depositing and withdrawing cash, measures to safeguard the reliability and security of cash, and reducing the cost of cash. This study ties in with the recent report on the position of cash by the National Forum on the Payment System (NFPS).2 The main stakeholders in the payment system are represented on this Forum to contribute to a socially robust, efficient and secure payment system. The present study builds on the cash trends described in the NFPS report, focusing on the importance of public money in physical and digital form, the significance of the specific properties of cash, the legal framework and the necessity of keeping cash easily accessible and available. |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbocs:1802&r=all |
| By: | Banco de Portugal working group on crypto-assets |
| Abstract: | Crypto-assets are digital assets that may depend on cryptography and exist on a distributed ledger or similar technology. In the absence of a common and widely accepted taxonomy, we first try to characterise crypto-assets and differentiate them from goods fulfilling the three essential functions of money: medium of exchange, unit of account and store of value. We then analyse the (lack of) legislation applied to crypto-assets, before concluding with the identification of the associated main risks. |
| JEL: | E42 G21 G23 O33 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ptu:wpaper:o202004&r=all |
| By: | Delphine Prady; Herve Tourpe; Sonja Davidovic; Soheib Nunhuck |
| Abstract: | During the 2020 pandemic, the majority of countries have provided income support to households at an unprecedented speed and scale. Social distancing measures and the large penetration of mobile phones in emerging markets and developing economies (EMDEs) have encouraged government-to-person (G2P) transfers through mobile platforms. This paper presents a comprehensive framework for sustainable money solutions in support of social assistance. The framework consists of eight building blocks that may help policymakers i) take stock and assess emergency fixes taken to scale up mobile money in a crisis context and ii) develop sustainable long-term solutions for mobile G2P transfers. |
| Keywords: | Mobile banking;Currencies;Population and demographics;Banking;Technology;WP,government,Novissi G2P,country,firm,government assistance program |
| Date: | 2020–09–25 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/198&r=all |
| By: | David Adeabah (University of Ghana, Legon, Ghana); Simplice A. Asongu (Yaoundé, Cameroon); Charles Andoh (University of Ghana, Legon, Ghana) |
| Abstract: | This study examines the impact of remittances and information and communication technology (ICT) on pension at the country level. Our empirical evidence, based on data from 96 countries, indicate a significant non-linearity between remittances, ICT and pension income coverage. First, we find a convex relation between remittances and pension income coverage, indicating that increases in remittance, initially decreases pension income coverage, but as remittance increases beyond a certain point, so too does pension income coverage. This inflection point, where the effect of remittances turns from negative to positive, is estimated to be around 3.09% of GDP. Second, we document a concave relationship between ICT (i.e. mobile subscription and internet penetration) and pension income coverage. An increase in ICT results in increased pension income coverage. However, when ICT reaches a certain point, any further increase is associated with lower pension income coverage. The estimated optimal point is found to be around 140.14 subscriptions (per 100 people) for mobile phone and 27.93 (per 100 people) for internet penetration, respectively. Other implications are discussed. |
| Keywords: | Pension income coverage; Remittances; Mobile subscription; Internet penetration; ICT |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/059&r=all |
| By: | Alexander Lee; Brendan Malone; Paul Wong |
| Abstract: | This report provides an overview of two concepts that come up frequently in discussions of digital currencies: tokens and accounts. The meaning of each concept differs depending on context. For cryptocurrencies, the term "token" has a relatively straightforward, technology-specific definition. For central bank digital currencies (CBDC), the term "token" takes on more of a conceptual or analytical meaning. To further complicate matters, "tokens" and "accounts" are not always mutually exclusive ideas. This paper identifies areas where this terminology has caused confusion and explains why the terminology is problematic in an effort to improve the technical and conceptual discourse on digital currencies and the "tokenization" of financial assets. |
| Date: | 2020–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2020-12-23&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas Biekpe (University of Cape Town, Cape Town, South Africa.); Danny Cassimon (University of Antwerp, Belgium) |
| Abstract: | “Replications are an important part of the research process because they allow for greater confidence in the findings†(McEwan, Carpenter & Westerman, 2018, p. 235). This study extends Lashitew, van Tulder and Liasse (2019, RP) by addressing the concern of multicollinearity that affects the signs and significance of estimated coefficients. This article investigates nexuses between innovations in mobile money and financial inclusion in developing countries. Demand and supply factors that affect the diffusion of mobile services as well as macro-level institutional and economic factors are taken on board. The empirical evidence is based on Tobit regressions. The study finds that when the empirical analysis is robust to multicollinearity, two main tendencies are apparent: the significant findings of Lashitew et al. (2019) are confirmed and many new significant estimated coefficients emerge. While this study confirms the findings of the underlying research, it also goes further to improve the harmony in narratives between the predictors and the outcome variables. Accordingly, by accounting for multicollinearity, the earlier findings are now more consistent across the set of predictors (i.e. demand and supply factors) and the attendant financial inclusion outcomes (i.e. mobile money accounts, mobile used to send money and mobile used to receive money). |
| Keywords: | Mobile money; technology diffusion; financial inclusion; inclusive innovation |
| JEL: | D10 D14 D31 D60 O30 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/041&r=all |
| By: | Da Silva, Filipe; De Furquim, Júlia; Núñez, Georgina |
| Abstract: | En este documento se analiza el papel de la política de competencia en la economia digital. Se hace hincapié en la relación entre las estrategias de negocios, las tecnologías, las innovaciones y la concentración de mercado, y se analiza la viabilidad de los marcos legales y regulatorios e institucionales en materia de competencia para enfrentar los nuevos desafíos de la economia digital. |
| Keywords: | INTERNET, ECONOMIA BASADA EN EL CONOCIMIENTO, PEQUEÑAS EMPRESAS, EMPRESAS MEDIANAS, COMPETENCIA, INNOVACIONES TECNOLOGICAS, COVID-19, VIRUS, EPIDEMIAS, ASPECTOS ECONOMICOS, ESTUDIOS DE CASOS, INTERNET, KNOWLEDGE-BASED ECONOMY, SMALL ENTERPRISES, MEDIUM ENTERPRISES, COMPETITION, TECHNOLOGICAL INNOVATIONS, COVID-19, VIRUSES, EPIDEMICS, ECONOMIC ASPECTS, CASE STUDIES |
| Date: | 2020–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:46549&r=all |
| By: | Chun, Hyunbae; Joo, Hailey Hayeon; Kang, Jisoo; Lee, Yoonsoo |
| Abstract: | The rapid growth of e-commerce is widely blamed for job losses in brick-and-mortar retailers. We construct a unique measure of online spending share based on 30 billion transactions of credit cards in Korea. Using the geographic variation in online spending shares, we examine the causal e ect of e-commerce on retail employment at the county level. We nd that the rise in online spending share from 2010 to 2015 decreases the county-level oine retail employment by about 172 workers, which represents approximately 3% reduction in average retail employment. We also nd that the employment shifts from oine retail to other local businesses, such as restaurants and personal services. However, such e ects of employment shift are con ned in metropolitan areas and fall far short of o setting employment losses in non-metropolitan areas. Our nding implies a prospect of Retail Job Apocalypse in certain local labor markets (i.e., non-metropolitan areas), if not everywhere. |
| Keywords: | E-Commerce, Employment, Local Labor Market, Retail, Credit Card |
| JEL: | J21 L81 R12 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2020-7&r=all |
| By: | International Monetary Fund |
| Abstract: | This technical note examines the implications of fintech for the regulation and supervision of the Singaporean financial services sector. It provides an overview of the financial system with a focus on fintech developments. The note looks at not only fintech developments but also the institutional setup as well as Monetary Authority of Singapore’s (MAS) approach to fintech. The MAS has so far managed to strike the right balance between innovation and safety and soundness. MAS has responded quickly to the challenges of fintech. The impact of fintech on the financial services sector has largely been internalized by financial institutions (FI). FIs are swiftly digitizing and modernizing their systems, products and business models. Because of their market knowledge and higher investment capacities, incumbent FIs are getting better at providing services and products by adopting new technologies or improving existing ones. The note also recommends that it is imperative to develop a cyber network map that considers both financial linkages and Information and Communications Technology connections and use it for cyber risk surveillance. |
| Keywords: | Fintech;Financial services;Anti-money laundering and combating the financing of terrorism (AML/CFT);Technology;Banking;ISCR,CR,fintech firm,risk management,business model,financial system,market structure,unit cost |
| Date: | 2019–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2019/229&r=all |
| By: | Barbara J. Lipman; Ann Marie Wiersch |
| Abstract: | This first article describes what small business owners encounter when searching for financing on the websites of online lenders. |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:fip:g00003:89158&r=all |
| By: | Wilson, Kyle; Xiao, Mo; Orazem, Peter F. |
| Abstract: | In a rapidly growing industry, potential entrants strategically choose which local markets to enter. Facing the threat of additional entrants, a potential entrant may lower its expectation of future profits and delay entry into a local market, or it may accelerate entry due to preemptive motives. Using the evolution of local market structures of broadband Internet service providers from 1999 to 2007, we find that the former effect dominates the latter after allowing for spatial correlation across markets and accounting for endogenenous market structure. On average, it takes two years longer for threatened markets to receive their first broadband entrant. Moreover, this entry delay has long-run negative implications for the divergence of the U.S. broadband infrastructure: one year of entry delay translates into an 11% decrease in average present-day download speeds. |
| Date: | 2020–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202010270700001120&r=all |
| By: | Daisuke Moriwaki (AI Division, CyberAgent, Inc.); Soichiro Harada (AI Division, CyberAgent, Inc.); Jiyan Schneider (Faculty of Economics, Keio University); Takahiro Hoshino (Faculty of Economics, Keio University) |
| Abstract: | Voluntary preventive behaviors are essential to slow the spread of the coronavirus disease 2019 (Covid-19), and such behaviors can be promoted by nudge messaging. In this context, this study investigated the effectiveness of nudge-based messages in increasing individuals' engagement in preventive behaviors. We employed a large-scale randomized controlled trial involving 0.3 million mobile device users from Tokyo; these users were sent nudge-based messages through display advertising. This approach enabled us to track the GPS-based geolocation history of these users through various apps, in July 2020, when the second wave of Covid-19 hit Japan. Specifically, our study is the first attempt to measure the effect of the nudge intervention effects on the spatial movement behavior of people, by using smartphone's GPS information. The results revealed that the nudge-based messages increased users' avoidance of closed spaces, crowded spaces, and close contact during the weekends (characterized by heightened leisure activities, and hence spatial movements). The most effective messages emphasized financial loss aversion. The delivery cost of messages was less than $0.1/person, and the people who received the messages reduced outdoor activities by approximately 52 minutes/weekend day. Our follow-up survey suggests that the nudgebased messages cost 2.5-6.5% of the monetary compensation given for stay-at-home compliance, which achieves the same result. These findings have implications for the development of government marketing strategies and effective nudge-based interventions to overcome the current pandemic. |
| Keywords: | Covid-19, Heterogeneity, Loss aversion, Nudge, Treatment effect |
| JEL: | C26 D91 M38 |
| Date: | 2020–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2020-021&r=all |
| By: | Marko Selakovic (S P Jain School of Global Management, Dubai, UAE Author-2-Name: Anna Tarabasz Author-2-Workplace-Name: S P Jain School of Global Management, Dubai, UAE Author-3-Name: Monica Gallant Author-3-Workplace-Name: S P Jain School of Global Management, Dubai, UAE Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - This review paper discusses the emergence of scholarly articles related to the typology and classification of fake news and offers solutions for identified gaps, such as unstandardized terminology and unstandardized typology in the field of fake news-related research. Typology of fake news is a critical topic nowadays: recently emerged fake news needs to be categorized and analyzed in a structured manner in order to respond appropriately. Methodology/Technique - Based on the systematic review of literature identified in scientific databases, different typologies of fake news have been identified and a new typology of business-related fake news online has been proposed. New typology of business-related fake news online is based on factors such as level of facticity, intention to deceive and financial motivation. Findings and novelty - Content analysis of 326 articles containing terms related to the typology of fake news and classification of fake news indicates that the term "typology of fake news" is predominantly used in management, marketing and communications research, while the term "classification of fake news" is predominantly used in the information technology research. The content analysis also indicates the recent emergence of the topic of typology and classification of fake news in academic research, revealing that all articles related to these topics have been published on or after 2016. In addition to the contribution by presenting comprehensive typology of business-related fake news online, this paper also provides recommendations for future research and improvements related to the typology of fake news, emphasizing business-related fake news and fake news spread in the digital space. Type of Paper - Review |
| Keywords: | Fake News; Crisis Communications; Online Communications; Digital Marketing; Management Research; Marketing Research |
| JEL: | M31 M39 |
| Date: | 2020–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr259&r=all |
| By: | Maria Mercanti-Guérin (IAE Paris - Sorbonne Business School) |
| Abstract: | With the emergence of Big Data and the increasing market penetration of ad retargeting advertising, the advertising industry's interest in using this new online marketing method is rising. Retargeting is an innovative technology based on Big Data. People who have gone to a merchant site and window-shopped but not purchased can be re-pitched with the product they showed an interest in. Therefore click rates and conversion rates are dramatically enhancing by retargeting. However, in spite of the increasing number of companies investing in retargeting, there is little academic research on this topic. In this paper we explore the links between retargeting, perceived intrusiveness and brand image. As results show the importance of perceived intrusiveness, ad repetition and ad relevance, we introduce new analytical perspectives on online strategies with the goal of facilitating collaboration between consumers and marketers. |
| Keywords: | Big Data,Retargeting,Perceived Intrusiveness,Ad Relevance |
| Date: | 2020–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03027981&r=all |
| By: | Yi Liu; T. Pinar Yildirim; Z. John Zhang |
| Abstract: | This paper develops a theoretical model to study the economic incentives for a social media platform to moderate user-generated content. We show that a self-interested platform can use content moderation as an effective marketing tool to expand its installed user base, to increase the utility of its users, and to achieve its positioning as a moderate or extreme content platform. The optimal content moderation strategy differs for platforms with different revenue models, advertising or subscription. We also show that a platform's content moderation strategy depends on its technical sophistication. Because of imperfect technology, a platform may optimally throw away the moderate content more than the extreme content. Therefore, one cannot judge how extreme a platform is by just looking at its content moderation strategy. Furthermore, we show that a platform under advertising does not necessarily benefit from a better technology for content moderation, but one under subscription does. This means that platforms under different revenue models can have different incentives to improve their content moderation technology. Finally, we draw managerial and policy implications from our insights. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.04618&r=all |
| By: | Olena Havrylchyk (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Labex ReFi - UP1 - Université Panthéon-Sorbonne); Aref Mahdavi-Ardekani (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper explores the short_term impact of borrowing via lending_based crowdfunding on performance and health of small and medium enterprises (SMEs) in France. We find that firms borrowing from lending-based crowdfunding platforms are more dynamic (higher asset growth and higher profitability) and innovative, but they have lower leverage, less cash, higher funding costs and less tangible assets that could be pledged as as collateral. To account for this selection bias, we construct three control groups by using Propensity Score Matching, Mahalanobis Distance Matching and Coarsened Exact Matching methods and then run difference-in-difference regressions. We find that borrowing via lending-based crowdfunding platforms increases SMEs' leverage and interest rate burden in the short-term, but these impacts disappear after two years. We observe asset growth during the year of borrowing, but no impact on sales growth, investment, employment or profitability. |
| Keywords: | lending-based crowdfunding,firm financing,firm performance,informational asymmetry |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02994903&r=all |
| By: | Claire Greene; Fumiko Hayashi; Joanna Stavins |
| Abstract: | This first article examines the implications of faster payments for cash-flow-constrained consumers. |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:g00003:89155&r=all |
| By: | OECD |
| Abstract: | Online personalised pricing is a form of price discrimination that involves charging different prices to different consumers, often based on a consumer’s personal data. Policymakers are currently discussing ways to protect consumers from potential adverse effects of personalised pricing. One option involves displaying disclosures on the websites of retailers that use personalised pricing, in order for consumers to make informed purchase decisions. This paper summarizes findings from a laboratory experiment on the effects that online disclosures about personalised pricing have on consumers. Results from the experiment suggest that online disclosures have only limited effects on consumers’ ability to identify and comprehend online personalised pricing, and cannot confirm a significant effect on participants’ purchasing behaviour. Results from a questionnaire distributed to participants reveal that on average personalised pricing is considered an unfair practice that should be prohibited. |
| Date: | 2021–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaab:303-en&r=all |
| By: | Dasha Basnakian; Neil Wiggins |
| Abstract: | This second article explores the emergence of online-only subsidiaries of traditional brick-and-mortar banks. |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:g00003:89156&r=all |
| By: | Claudio Vitari (AMU - Aix Marseille Université); Elisabetta Raguseo (Polito - Politecnico di Torino [Torino]); Federico Pigni (GEM - Grenoble Ecole de Management) |
| Abstract: | Real-time digital data are becoming important assets in a growing number of organizations. This paper, applying the affordance theory, describes the development of a taxonomy for understanding real-time digital data initiatives. The proposed taxonomy is composed by two categories, the Technology affordance and the Affordance actualization, respectively gathering four and five dimensions. Specifically, the Technology affordances of the real-time digital initiatives are real-time sensing, real-time mass visibility, real-time experimentation and real-time coordination, while the Affordance actualizations are service, efficiency, analytics, aggregation and generation |
| Abstract: | Les données digitales en temps réel deviennent des atouts importants dans un nombre croissant d'organisations. Cet étude applique la théorie des affordances dans l'élaboration d'une taxonomie permettant de comprendre les initiatives en données digitales en temps réel. La taxonomie proposée est composée de deux catégories, les affordances technologiques et l'actualisation des affordances, regroupant respectivement quatre et cinq dimensions. Plus précisément, les affordances technologiques sont la détection en temps réel, la visibilité de masses en temps réel, les expérimentations en temps réel et la coordination en temps réel, tandis que les actualisations d'affordances concernent le service, l'efficacité, l'analyse, l'agrégation et la génération. |
| Keywords: | Données Massives,Données digitales en temps réel,Affordances technologiques,Actualisation des affordances |
| Date: | 2020–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03026850&r=all |