nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2021‒07‒19
39 papers chosen by
Bernardo Bátiz-Lazo
Northumbria University

  1. Bitcoin's Crypto Flow Newtork By Yoshi Fujiwara; Rubaiyat Islam
  2. Remittance micro-worlds and migrant infrastructure: circulations, disruptions, and the movement of money By Cirolia, Liza Rose; Hall, Suzanne; Nyamnjoh, Henrietta
  3. Phänomen Fintech: Sichtweisen, Gründe für die Existenz, Chancen und Risiko sowie Ideen für zukünftige Forschung By Treu, Johannes
  4. Price Competition Online: Platforms vs. Branded Websites By Oksana Loginova
  5. Delineating zero-price markets with network effects:An analysis of free messenger services By Akihiro NAKAMURA; Takanori IDA
  6. Does online search improve the match quality of new hires? By van den Berg, Gerard; Gürtzgen, Nicole; Lochner, Benjamin; Pohlan, Laura
  7. Empowering the health workforce to make the most of the digital revolution By Karolina Socha-Dietrich
  8. The Making of Fraudulent Economic Operations and Identity Theft as Cybercrimes in Romania By Dan Cristian
  9. The Entrepreneurial Returns to Incumbents’ Digital Transformation By Jacques Bughin; Nicolas van Zeebroeck
  10. The Impact of Multi-homing in a Ride-Hailing Market By Oksana Loginova; X. Henry Wang; Qihong Liu
  11. SUITCEYES Scoping Report on Law and Policy on Deafblindness, Disability and New Technologies: United Kingdom By Woodin, Sarah L.
  12. The Development Of MSMEs During The Pandemic By Elvira, Veronica
  13. Medium, Small and Medium Enterprises and Digital Platforms Since Covid 19 By Lukito, Grace Ignacia
  14. Crowdfunding, Crypto-Currency, Blockchain, Financial Dealings: Review of Business Planning, Challenges and Issues By ULLAH, NAZIM
  15. Fake Reviews and Naive Consumers By Boris Knapp
  16. Borders of Network Effects and Early Internationalization as a Latecomer Strategy By Chang, Sungyong; Park, Sanghyun
  17. Performance Analysis of Mobile Banking During the COVID-19 Pandemic Period Comparing with the Pre-pandemic Period of Covid-19: An Empirical Study on Bangladesh By Md. Ruhul Amin
  18. Fighting for Fares: Uber and the Declining Market Price of Licensed Taxicabs By Alina Garnham; Derek Stacey
  19. Startups in the United States during the pandemic reflect some dynamism amid job losses By Simeon Djankov; Eva (Yiwen) Zhang
  20. Self-control and social media addiction (Facebook):a quantitative analysis By Habermann, Judita
  21. Financial inclusion-exclusion paradox: how banked adults become unbanked again By Ozili, Peterson Kitakogelu
  22. Collaborative Insurance Sustainability and Network Structure By Arthur Charpentier; Lariosse Kouakou; Matthias L\"owe; Philipp Ratz; Franck Vermet
  23. Transparency reporting on terrorist and violent extremist content online: An update on the global top 50 content sharing services By OECD
  24. Information Aggregation with Delegation of Votes By Dhillon, Amrita; Kotsialou, Grammateia; Xefteris, Dimitris
  25. Broadband speed and firm entry in digitally intensive sectors: The case of Croatia By Drilo, Boris; Stojcic, Nebojsa; Vizek, Maruska
  26. Exploring markets: Magic the gathering - a trading card game By Weber, Daniel
  27. Tapping the Power of Social Media on Innovation Performance By Shan Shan The
  28. Proof-of-Stake Mining Games with Perfect Randomness By Matheus V. X. Ferreira; S. Matthew Weinberg
  29. Deteriorated sleep quality does not explain the negative impact of smartphone use on academic performance By Simon Amez; Suncica Vujic; Margo Abrath; Stijn Baert
  30. Quand l'expérientiel en luxe se construit sur Instagram : Synergie ou bataille entre marques et directeurs artistiques ? By Maria Mercanti-Guérin; Christel de Lassus; Christophe Bezes
  31. The Dollarisation Paradox in Cambodia: Network Externalities Matter By Kheng, Veasna; Pan, Lei
  32. Smart Car Service Adoption: Investigating the Role of Information Privacy By Pumplun, Luisa; Wiefel, Jennifer; Wächter, Katharina; Barth, Niklas; Buxmann, Peter
  33. Online community platforms as a source of health empowerment : The Slow Diabetes Program. By Marie-Laure Mourre; Agnès Helme-Guizon; Carole Avril
  34. Countering Misinformation on Social Media Through Educational Interventions: Evidence from a Randomized Experiment in Pakistan By Ayesha Ali; Ihsan Ayyub Qazi
  35. The Diffusion of Disruptive Technologies By Nicholas Bloom; Tarek Alexander Hassan; Aakash Kalyani; Josh Lerner; Ahmed Tahoun
  36. What is Programmable Money? By Alexander Lee
  37. Does Money Strengthen Our Social Ties? Longitudinal Evidence of Lottery Winners By Costa-Font, Joan; Powdthavee, Nattavudh
  38. The Influence Of E-Banking Service Quality on Customer Loyalty: A Moderated Mediation Approach By ULLAH, NAZIM
  39. Financial Innovation in the 21st Century: Evidence from U.S. Patents By Josh Lerner; Amit Seru; Nick Short; Yuan Sun

  1. By: Yoshi Fujiwara; Rubaiyat Islam
    Abstract: How crypto flows among Bitcoin users is an important question for understanding the structure and dynamics of the cryptoasset at a global scale. We compiled all the blockchain data of Bitcoin from its genesis to the year 2020, identified users from anonymous addresses of wallets, and constructed monthly snapshots of networks by focusing on regular users as big players. We apply the methods of bow-tie structure and Hodge decomposition in order to locate the users in the upstream, downstream, and core of the entire crypto flow. Additionally, we reveal principal components hidden in the flow by using non-negative matrix factorization, which we interpret as a probabilistic model. We show that the model is equivalent to a probabilistic latent semantic analysis in natural language processing, enabling us to estimate the number of such hidden components. Moreover, we find that the bow-tie structure and the principal components are quite stable among those big players. This study can be a solid basis on which one can further investigate the temporal change of crypto flow, entry and exit of big players, and so forth.
    Date: 2021–06
  2. By: Cirolia, Liza Rose; Hall, Suzanne; Nyamnjoh, Henrietta
    Abstract: Remittances are increasingly central to development discourses in Africa. The development sector seeks to leverage transnational migration and rapid innovations in financial technologies (fintech), to make remittance systems cheaper for end-users and less risky for states and companies. Critical scholarship, however, questions the techno-fix tendency, calling for grounded research on the intersections between remittances, technologies, and everyday life in African cities and beyond. Building on this work, we deploy the concepts of ‘micro-worlds’ and ‘migrant infrastructure’ to make sense of the complex networks of actors, practices, regulations, and materialities which shape remittance circulations. To ground the work, we narrate two vignettes of remittance service providers who operate in Cape Town, South Africa, serving the Congolese diaspora community. We showcase the important role of logistics companies in the ‘informal’ provision of remittance services and the rise of fintech companies operating in the remittance space. These vignettes give substance to the messy and relational dynamics of remittance micro-worlds. This relationality allows us to see how remittances are circulations, not unidirectional flows; how they are not split between formal and informal, but in fact intersect in blurry ways; how digital technologies are central to the story of migrant infrastructures; and how migrants themselves are compositional of these networks. In doing so, we tell a more relational story about how remittance systems are constituted and configured.
    Keywords: remittances; mobile money; regulation; migrant infrastructure; micro-worlds
    JEL: R14 J01
    Date: 2021–05–12
  3. By: Treu, Johannes
    Keywords: Fintech,Finanzinnovation,Evolution of Fintech,Finanztechnologie
    JEL: G20 G23 O16 O30 O33
    Date: 2021
  4. By: Oksana Loginova (Department of Economics, University of Missouri)
    Abstract: The focus of this theoretical study is price competition when some firms operate their own branded website while others sell their products through an online platform, such as Amazon Marketplace. On one hand, selling through Amazon expands a firm's reach to more customers, but on the other hand, starting a website can help the firm to increase the perceived value of its product, that is, to build brand equity. In the short run the composition of firms is fixed, whereas in the long run each firm chooses between Amazon and its own website. I derive the equilibrium prices and profits, analyze the firms' behavior in the long run, and compare the equilibrium outcome with the social optimum. Comparative statics analysis reveals some interesting results. For example, I find that the number of firms that choose Amazon may go down in response to an increase in the total number of firms. A pure-strategy Nash equilibrium may not exist; I show that price dispersion among firms of the same type is more likely in less concentrated markets and/or when the increase in the perceived value of the product is relatively small.
    Keywords: pricing, competition, platforms, online marketplace, Amazon, brand equity
    JEL: C72 D43 L11 L13 M31
    Date: 2021–03–21
  5. By: Akihiro NAKAMURA; Takanori IDA
    Abstract: Billions of users worldwide use digital zero-price services every day. This study proposes a market definition method for digital zero-price services, using the messenger service as an example. We employ the small but significant non-transitory increase in cost (SSNIC) test, which is an improved version of the small but significant non-transitory increase in price (SSNIP) test, and conduct conjoint analysis while considering the network effect, a characteristic of digital services. Our results show that the price elasticity of demand is 0.628 and the critical markup ratio is 1.492–1.542 when only the price effect is considered. When the direct network effect is considered, the price elasticity of demand is 1.728 and the critical markup ratio is 0.479–0.529. Furthermore, when considering a two-sided market with indirect network effects, the price elasticity of demand is 2.162 and the critical markup ratio is 0.363–0.413. Thus, the price elasticity of demand for free messenger services is higher when the network effects and two-sided markets are considered.
    Keywords: Freemium services, Market definition, Competitive policy, Conjoint analysis
    JEL: L13 L52 L41 L86 L96
  6. By: van den Berg, Gerard (University of Groningen); Gürtzgen, Nicole (IAB,University of Regensburg, ZEW); Lochner, Benjamin (UniversityofErlangen-N ̈urnberg,IAB); Pohlan, Laura (AB,ZEW)
    Abstract: This paper studies the effects of the high-speed internet expansion on the match quality of new hires. We combine data on internet availability at the local level with German individual register and vacancy data.Results show that internet availability has no major impact on the stability of new matches and their wages. We confirm these findings using vacancy data, by explicitly comparing match outcomes of online and non-online recruits. Further results show that online recruiting not only raises the number of applicants and the share of unsuitable candidates per vacancy, but also induces employers to post more vacancies.
    Keywords: Matching; internet; informationalfriction; recruitingchannel; va-cancy; wage; jobduration
    JEL: C26 H40 J64 L96
    Date: 2021–05–28
  7. By: Karolina Socha-Dietrich (OECD)
    Abstract: Digital technologies offer unique opportunities to strengthen health systems. However, the digital infrastructure only provide the tools, which on their own cannot transform the health systems, but need to be put to productive use by health workers. This report discusses how to engage and empower the health workforce to make the most of the digital revolution. While many health workers already use some digital tools and perceive the benefits that they bring to them and to patients, many also question the value digital technologies produce in health care or complain about technology getting in the way of work. Moreover, health workers often report not having sufficient opportunities for the up-skilling required to fully use new technologies or that the legal, financial, and organisational aspects of work – designed in the pre-digital era – do not enable them to reap the full benefits of these new technologies. Health workers and patients also demand appropriate safeguards against possible lack of transparency or threats to data privacy.
    JEL: I11 I13 J45
    Date: 2021–07–19
  8. By: Dan Cristian (Dimitrie Cantemir Christian University of Bucharest, Romania,)
    Abstract: In the 21st century, information has gained a huge value, mainly because the human activities have transitioned from the physical world to the digital one. Among these activities, we can find the innovated economic one, represented by the accumulation of capital in virtual accounts handled and insured by the banks. Another transitioned element consists of the social processes, this being done nowadays on different networks and mobile applications. Due to the fact that humans have created the systems by which our personal data is protected and which assure ones right of property over a digital monetary transaction alongside the right to a private life when it comes to a conversation on platforms with one or more people, these programs are susceptible to fraudulent activities done by individuals with high informatics skills. The current paperwork will analyze from a legal approach the crimes which can be committed in regards to the above-mentioned aspects. The branch of criminal law will serve as the main building block for reaching valid conclusions.
    Keywords: cybercrimes, criminal law, psychology, identity theft, victims, social networks, criminal resolution, data protection systems, the subjective criminal side
    Date: 2021–03
  9. By: Jacques Bughin; Nicolas van Zeebroeck
    Abstract: Returns on investing into digital technologies by incumbents may be low as result of them facing adjustment costs. We derive benchmarks of returns to digital investments while demonstrating that returns are enhanced by strategic renewal at sufficient turbulence levels. We also demonstrate the relative contribution of four organizational drivers (risk-appetite, threat sensing, new capabilities, and leadership involvement) in shaping those returns, through their joint effects on both strategic renewal propensity and incumbent organizations’ commitment to large digital investment programmes. Entrepreneurial leadership is a core component of successful digitization programmes both directly through top management involvement in digital projects, as well as indirectly though leadership building awareness of value at risk and by engaging in complementary digital capabilities.
    Keywords: Digitalization, Digital transformation, strategic renewal, adjustment costs, entrepreneurial leadership
    Date: 2021–07
  10. By: Oksana Loginova (Department of Economics, University of Missouri); X. Henry Wang (Department of Economics, University of Missouri); Qihong Liu (Department of Economics, University of Oklahoma)
    Abstract: Platforms such as Uber, Lyft and Airbnb serve two-sided markets with drivers (property owners) on one side and riders (renters) on the other side. Some agents multi-home. In the case of ride-sharing, a driver may drive for both Uber and Lyft, and a rider may use both apps and request a ride from the company that has a driver close by. In this paper, we are interested in welfare implications of multi-homing in such a market. Our model abstracts away from entry/exit by drivers and riders as well as pricing by platforms. Both drivers' and riders' surpluses are determined by the average time between a request and the actual pickup. The benchmark setting is a monopoly platform and the direct comparison is a single-homing duopoly. The former is more efficient since it has a thicker market. Next, we consider two multi-homing settings, multi-homing on the rider side and multi-homing on the driver side. Relative to single-homing duopoly, we find that multi-homing on either side improves the overall welfare. However, multi-homing drivers potentially benefit themselves at the cost of single-homing drivers. In contrast, multi-homing riders benefit themselves as well as single-homing riders, representing a more equitable distribution of gains from multi-homing.
    Keywords: Ride-hailing platform, two-sided markets, network externalities, multi-homing
    JEL: D85 L12 L13
    Date: 2020–10–09
  11. By: Woodin, Sarah L.
    Abstract: This report discusses law and policy on new technologies: artificial intelligence (AI), machine learning and the Internet of Things (IoT) in relation to disabled people and people with deafblindness in the UK. Written as part of the SUITCEYES project, it provides a broad overview of formal rights and the extent to which disabled people can access new technologies in practice. The field is fast moving and volatile, with judgements regularly made and overturned in the courts and frequent new initiatives. The UK government emphasises the importance of investing in new technologies as a means of strengthening the economy. The opportunities represented by technological developments have been largely welcomed by disabled people but questions remain about how the technology might be used and developed by disabled people and people with deafblindness themselves and the need for safeguards against exploitation.
    Date: 2020–05–31
  12. By: Elvira, Veronica
    Abstract: Based on this, it can be concluded that the government has done its best to be able to assist the state in improving and reducing the burden on the economy of the people. Currently, MSMEs have also moved to make transactions via digital or online. This is done so that MSMEs can survive because individuals always make purchases through the online system. We can see all around us today that all businesses have entered several marketplaces, in fact, Shopee itself has developed a Shopeefood feature which can provide benefits for business people in the food sector to sell on these marketplaces apart from GoFood and GrabFood. The development of digitalization has been very helpful for individuals. Of course, not only the Shopee marketplace is used by business people, but there are also Tokopedia, Blibli and many more.
    Date: 2021–06–07
  13. By: Lukito, Grace Ignacia
    Abstract: Since pandemic Covid-19 reign the world, A new business platform is a must for companies that are disrupting new media technology. But there are many companies are less able to keep up with the changing of business trends. Companies must anticipate in the competitive climate in the digital era in carrying out the company transformation program along with the implementation of good corporate governance. This article focuses to analysis on effort to raise Medium, Small and Medium Enterprises (MSMEs) to improving Indonesia economy. Base on fact, show that credit training, mentoring and programs not able to strengthen their position in small and medium enterprises but they still working to increase the literacy index and financial inclusion.
    Date: 2021–06–11
  14. By: ULLAH, NAZIM
    Abstract: Corporate sustainability has moved from exploitation to exploration, from corporate environmental management to sustainable entrepreneurship, and from efficiency to innovation. The purpose of the study is to review global entrepreneurship, innovation and Sustainability - theory and practice, entrepreneurship micro – enterprise idea/ project and critical reflection of entrepreneurial theories, concepts and techniques. The study reviews a number literature from different journals ranging from 1994-2016. Based on the review, crow-funding and crypto-currency are the new innovation in the business world and used for financial dealings. Innovative idea should be based on emergency and urgent demand like mask and PPE all over the world. Furthermore, in addition to technology, competition is vital as it ensures that competing businesses provide the target market with quality goods and services.
    Keywords: Financial innovation, business planning, challenges and issues
    JEL: G39
    Date: 2021
  15. By: Boris Knapp
    Abstract: User-generated reviews like those found on Amazon, Yelp, and similar platforms have become an important source of information for most consumers nowadays. It is therefore tempting for firms to manipulate reviews in order to increase demand for their products - but not all consumers are aware of this. We show that in a simple model with fake reviews and naive consumers the unique equilibrium is characterised by partial pooling, where fake reviews blend in with real ones and are persuasive. Policies that reduce the share of naive consumers have opposing effects on the two consumer groups: naives benefit, while sophisticates are harmed. A policy maker concerned with aggregate consumer welfare is thus facing a non-trivial problem. We further show that when real reviews are written strategically, they are not always truthful. Given sufficiently favourable market conditions, the equilibrium where all real reviewers are strategic is outcome equivalent to one where all consumers are sophisticates. In the context of online platforms, where the boundary between consumers and reviewers is fluid, this equivalence result has important practical implications.
    JEL: C72 D82 L15
    Date: 2102–07
  16. By: Chang, Sungyong (London Business School); Park, Sanghyun
    Abstract: Scholars have examined the persistent heterogeneity of firm performance from the entry-order effect perspective. In the international business literature, this perspective has been highlighted in research on early internationalization (i.e., the born global strategy). While prior work has focused on the heterogeneity of firm characteristics and capabilities, we present a demand-side view of early internationalization by focusing on network effects. Prior theoretical work on network effects has predicted that when network effects are prominent, survival is challenging for latecomers because of the installed bases of first movers in the global market. However, we see many cases, such as the mobile instant messenger (MIM) market, where no single winner dominates the global market and where many latecomers have survived by implementing early internationalization. We build upon Brian Arthur’s model of demand-side dynamics. The findings suggest that latecomers may overcome their disadvantages by pursuing early internationalization, especially when the direct network effects (i.e., social network effects) are stronger than the indirect network effects (i.e., installed base effects). The underlying rationale is that country borders often demarcate the reach of the direct network effect, limiting the power of installed bases.
    Date: 2021–07–08
  17. By: Md. Ruhul Amin (Department of Finance and Banking, Islamic University, Bangladesh Author-2-Name: Author-2-Workplace-Name: Md. Nahiduzzaman Author-3-Name: Department of Finance and Banking, Islamic University, Bangladesh Author-3-Workplace-Name: 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 - Mobile banking is a growing activity to engage the non-banking people in the banking system in Bangladesh, so researchers of this paper try to find out how much it is affected by the Coronavirus (COVID-19). Basically, this study is developed to assess the performance of mobile banking during the COVID-19 pandemic period comparing with the pre-pandemic period. Methodology/Technique - Authors use descriptive statistics to evaluate the performance of mobile bank during the study period from 2014 to August 2020. Findings - This paper finds that during the COVID period the average change of monthly number of active accounts & registered clients have increased, on the other hand the average change of monthly number of agents have decreased at the same time. Except cash in & cash out, all other types of transactions proportion of mobile banking have increased during the COVID-19 period. Novelty - As the mobile banking is a key resource for banking people as well as non-banking people to transact financial things at setting at the house, so this paper will be beneficial for mobile banking service provider organization to assess the whole things of mobile banking at this ongoing period, and they can take necessary action. Type of Paper - Empirical."
    Keywords: Mobile Banking, COVID-19, Financial Performance, Bangladesh.
    JEL: G21 G22
    Date: 2021–07–30
  18. By: Alina Garnham (Department of Economics and The Water Institute, University of Waterloo, Canada); Derek Stacey (Department of Economics, University of Waterloo, Canada)
    Abstract: In this paper, we study how the emergence of Uber in a large North American city affects the market price of taxicab licenses. A taxicab license provides a claim to a stream of dividends in the form of rents generated by operating the taxicab or leasing the license. The introduction of Uber undoubtedly affects the anticipated stream of dividends because Uber drivers capture part of the farebox revenue that might otherwise go to the owners/drivers of licensed taxicabs. At the same time, the launch of Uber's innovative technology-driven approach to the provision of ride-hailing services can be viewed as a partial obsolescence of the traditional taxicab approach. The economic incentives facing market participants may therefore change as Uber gains momentum in the ride-hailing market, which could further affect the market value of licensed taxicabs. Using transaction-level data, we apply a theory of asset pricing to the secondary market for Toronto taxicab licenses to explore these potential price ef- fects. We learn that both the farebox and innovation effects contribute to the overall decline in market value. The farebox effect explains approximately 60% of the price decline; the innovation effect can account for the rest.
    JEL: G12
    Date: 2021–07
  19. By: Simeon Djankov (Peterson Institute for International Economics); Eva (Yiwen) Zhang (Peterson Institute for International Economics)
    Abstract: New business applications have surged in the United States since the start of the COVID-19 pandemic. The growth is driven largely by startups in online retail, transportation, and personal services. Many of these new entrepreneurs are self-employed and were likely laid off and forced into entrepreneurship by necessity. No official data are available yet on the number of businesses destroyed in 2020, because business data for firms that close without entering bankruptcy are lagging. But the authors calculate that firm births may have surpassed firm deaths during the pandemic. While this boom in business entry is a tribute to the adaptability and potential innovative spirit in US capitalism, one should not be overly optimistic about jobs created in this wave of startups. As many of these new startups are by people forced to strike out on their own, the number of jobs created per new firm is even smaller than it was during previous US recessions. And like online businesses started around the last recession (e.g., Uber, Airbnb, and Venmo), some of these new firms may turn out to be major contenders in their sectors, displacing workers employed by their traditional rivals.
    Date: 2021–05
  20. By: Habermann, Judita
    Abstract: The purpose of this study is to determine the relationship between self-control and teenage social media addiction (Facebook). This study employs a quantitative approach and purposively samples 102 students in the XII level. The data collection scales used are self-control and social media addiction (Facebook). Data analysis utilizing product moment correlation approaches revealed a negative correlation between self-control and social media addiction of rxy = -0.42; p = 0.000 0.05, indicating that the more the self-control, the lower the social media addiction. And, once again, the lack of self-control correlates with a higher level of social media addiction. As a result, the hypothesis is accepted. According to the research findings, self-control contributes 17.58 percent to social media addiction, while the remaining 82.42 percent is influenced by other factors.
    Keywords: Facebook; self control; social media addiction; teenagers
    JEL: I10 I12
    Date: 2021–05–06
  21. By: Ozili, Peterson Kitakogelu
    Abstract: This paper analyses how financially included adults might become unbanked again. Agents of financial inclusion incorporate economic and social constraints in the delivery of formal financial services. These constraints limit the ability of poor banked adults to use basic financial services to the fullest. The constraints affect agents of financial inclusion positively, and affect customers negatively up to a point where the marginal benefit of being financially included is negative for poor customers. When the marginal benefit of using formal financial services becomes negative, the affected banked adults may discontinue using their formal accounts or exit the formal financial sector when they can no longer bear the negative effect of social and economic constraints that hinder their ability to enjoy basic financial services to the fullest.
    Keywords: Financial inclusion, financial institutions, financial exclusion, banked adults, formal accounts, paradox, access to finance, households, constraints.
    JEL: G00 G02 G18 G21 H24 O12 O17
    Date: 2021–06
  22. By: Arthur Charpentier; Lariosse Kouakou; Matthias L\"owe; Philipp Ratz; Franck Vermet
    Abstract: The peer-to-peer (P2P) economy has been growing with the advent of the Internet, with well known brands such as Uber or Airbnb being examples thereof. In the insurance sector the approach is still in its infancy, but some companies have started to explore P2P-based collaborative insurance products (eg. Lemonade in the U.S. or Inspeer in France). The actuarial literature only recently started to consider those risk sharing mechanisms, as in Denuit and Robert (2021) or Feng et al. (2021). In this paper, describe and analyse such a P2P product, with some reciprocal risk sharing contracts. Here, we consider the case where policyholders still have an insurance contract, but the first self-insurance layer, below the deductible, can be shared with friends. We study the impact of the shape of the network (through the distribution of degrees) on the risk reduction. We consider also some optimal setting of the reciprocal commitments, and discuss the introduction of contracts with friends of friends to mitigate some possible drawbacks of having people without enough connections to exchange risks.
    Date: 2021–07
  23. By: OECD
    Abstract: This benchmarking report explores the degree to which the world’s top 50 online content-sharing services’ approaches to terrorist and violent extremist content (TVEC) online have evolved since a first report in 2020. This new edition finds there has been tangible progress: 11 services have issued TVEC-specific transparency reports over the past year (6 more than in 2020); and the 5 services that already issued such reports now provide additional information. However, transparency reports expressly addressing TVEC remain uncommon and services continue to use different metrics, definitions and reporting frequencies. It remains difficult to gain an industry-wide perspective on the efficacy of companies’ measures to combat TVEC online and how they may affect human rights. Meanwhile, there is a growing risk of regulatory fragmentation due to unco-ordinated transparency requirements across jurisdictions. There is an urgent need for increased, and more comparable, TVEC reporting.
    Date: 2021–07–15
  24. By: Dhillon, Amrita; Kotsialou, Grammateia; Xefteris, Dimitris
    Abstract: Recent developments in blockchain technology have made possible greater progress on secure electronic voting, opening the way to better ways of democratic decision making. In this paper we formalise the features of ``liquid democracy'' which allows voters to delegate their votes to other voters, and we explore whether it improves information aggregation as compared to direct voting. We consider a two-alternative setup with truth-seeking voters (informed and uninformed) and partisan ones (leftists and rightists), and we show that delegation improves information aggregation in finite elections. We also propose a mechanism that further improves the information aggregation properties of delegation in private information settings, by guaranteeing that all vote transfers are from uninformed to informed truth-seeking voters. Delegation offers effective ways for truth-seeking uninformed voters to boost the vote-share of the alternative that matches the state of the world in all considered setups and hence deserves policy makers' attention.
    Date: 2021–01–02
  25. By: Drilo, Boris; Stojcic, Nebojsa; Vizek, Maruska
    Abstract: We explore how improvements in digital infrastructure contribute to digital transformation of the Croatian economy. More specifically, we investigate under what conditions improvements in broadband speed are conductive for firm entry in digitally intensive sectors at the local level (cities and municipalities; LGUs) during the period 2014–2017. The results of the benchmark random effects panel data model suggest a 10 percent increase in broadband speed increases the number of new digitally intensive firms by 0.68. Two-way interactions between explanatory variables suggest improvements in broadband infrastructure yield the greatest number of new firm entries in densely populated LGUs, and in LGUs with a higher quality of human capital and greater public investment in physical infrastructure. Using the spatial Durbin panel method, we find improvements in broadband infrastructure exhibit positive firm entry effects both within and between cities and municipalities.
    Keywords: firm entry; digitally intensive sectors; broadband speed; digital transformation; Croatia; spatial spillovers
    JEL: D22 L26 M13 O33
    Date: 2021–07
  26. By: Weber, Daniel
    Abstract: Exploring Markets" is planned as a paper series discussing niche markets with interesting characteristics. The paper on hand focuses on the secondary market of the trading card game "Magic the Gathering", in which players play against each other with decks composed of cards they have collected. Recent high-volume trades raise the question if the investment in pop culture collectibles in general and in Magic the Gathering trading cards in particular can be considered as a legitimateand viable investment form. To answer this question, price developments and market characteristics are analyzed. The paper explicitly aims at people that have never heard of Magic the Gathering and are curious about its basic mechanisms and economics.
    Keywords: Market Study,Trading Card Games,Collectibles
    JEL: Z19
    Date: 2021
  27. By: Shan Shan The (School of Management, Universiti Sains Malaysia, Malaysia Author-2-Name: Daisy Mui Hung Kee Author-2-Workplace-Name: School of Management, Universiti Sains Malaysia, Malaysia Author-3-Name: Munazza Zahra Author-3-Workplace-Name: School of Management, Universiti Sains Malaysia, Malaysia Author-4-Name: Gadi Dung Paul Author-4-Workplace-Name: School of Management, Universiti Sains Malaysia, Malaysia 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 study investigates the relationship between social media and innovation performance among SMEs in Malaysia. This study also extends social media literature by investigating the underlying mechanism of open innovation in the relationship between social media and innovation performance. Methodology/Technique - A questionnaire was used to collect data from the respondents. A total of 173 samples from data collection were then used to test the hypotheses by using the SPSS and SmartPLS software. Finding - The result has revealed that social media has a significant effect on innovation performance. Besides, outbound innovation is also found to mediate the relationship between social media and innovation performance. Novelty - This study contributes to the literature on social media and innovation by providing new evidence regarding outbound innovation impact on performance among SMEs. It also provides a great idea of social media's importance to SME managers in improving innovation performance in an organization. Type of Paper - Empirical.
    Keywords: Social Media, Innovation Performance, Open Innovation, Smes, Malaysia
    Date: 2021–06–30
  28. By: Matheus V. X. Ferreira; S. Matthew Weinberg
    Abstract: Proof-of-Stake blockchains based on a longest-chain consensus protocol are an attractive energy-friendly alternative to the Proof-of-Work paradigm. However, formal barriers to "getting the incentives right" were recently discovered, driven by the desire to use the blockchain itself as a source of pseudorandomness \cite{brown2019formal}. We consider instead a longest-chain Proof-of-Stake protocol with perfect, trusted, external randomness (e.g. a randomness beacon). We produce two main results. First, we show that a strategic miner can strictly outperform an honest miner with just $32.8\%$ of the total stake. Note that a miner of this size {\em cannot} outperform an honest miner in the Proof-of-Work model. This establishes that even with access to a perfect randomness beacon, incentives in Proof-of-Work and Proof-of-Stake longest-chain protocols are fundamentally different. Second, we prove that a strategic miner cannot outperform an honest miner with $30.8\%$ of the total stake. This means that, while not quite as secure as the Proof-of-Work regime, desirable incentive properties of Proof-of-Work longest-chain protocols can be approximately recovered via Proof-of-Stake with a perfect randomness beacon. The space of possible strategies in a Proof-of-Stake mining game is {\em significantly} richer than in a Proof-of-Work game. Our main technical contribution is a characterization of potentially optimal strategies for a strategic miner, and in particular, a proof that the corresponding infinite-state MDP admits an optimal strategy that is positive recurrent.
    Date: 2021–07
  29. By: Simon Amez; Suncica Vujic; Margo Abrath; Stijn Baert (-)
    Abstract: University students’ smartphone use has recently been shown to negatively affect their academic performance. Surprisingly, research testing the empirical validity of potential mechanisms underlying this relationship is very limited. In particular, indirect effects of negative health consequences due to heavy smartphone use have never been investigated. To fill this gap, we investigate, for the first time, whether deteriorated sleep quality drives the negative impact on academic performance. To this end, we examine longtudinal data on 1,635 students at two major Belgian universities. Based on a combination of a random effects approach and seemingly unrelated regression, we find no statistically significant mediating effect of sleep quality in the relationship between smartphone use and academic performance.
    Keywords: smartphone use, academic performance, sleep quality, mediation analysis.
    JEL: I21 I23 J24
    Date: 2021–07
  30. By: Maria Mercanti-Guérin (IAE Paris - Sorbonne Business School); Christel de Lassus (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel); Christophe Bezes (ISTEC - Institut supérieur des Sciences, Techniques et Economie Commerciales - ISTEC)
    Abstract: Instagram has become the preferred social network for luxury brands that actively develop their events there. Among the many strategies of presence on this network is the highlighting of content and accounts by artistic directors (ADs). However, some develop their own strategies that blur the expression of the positioning of the luxury brands for which they work. An innovative methodology, by mobilising artificial intelligence and by analysing the contents and objects posted on Instagram (texts and "captions") has made it possible to study the experiential built on Instagram by the AD. The results propose a typology of the collaboration be-tween ADs and brands and underline the difficulty of managing multiple transmitters on social networks. The conclusions of this research pave the way for a more global reflection on the difficult management of influencers in the luxury sector.
    Abstract: Instagram est devenu le réseau social privilégié des marques de luxe qui y développent leur évènementiel de façon active. Parmi les multiples stratégies de présence sur ce réseau, figure la mise en avant des contenus et des comptes des directeurs artistiques (DA). Or, certains développent des stratégies propres qui rendent floue l'expression des positionnements des marques de luxe pour lesquels ils travaillent. Une méthodologie innovante, par mobilisation de l'intelligence artificielle et par analyse des contenus et objets postés sur Instagram (textes et « captions ») a permis d'étudier l'expérientiel construit sur Instagram par les DA. Les résultats proposent une typologie de la collaboration entre DA et marques. Ils soulignent la difficulté de gérer de multiples émetteurs sur les réseaux sociaux. Les conclusions de cette recherche ouvrent la voie à une réflexion plus globale sur la difficile gestion des influenceurs dans le secteur du luxe.
    Keywords: AI,artistic directors,experiential,Instagram,luxury,Mode,Marque,Luxe,E-Commerce,Directeurs Artistiques,Influence,Réseaux sociaux
    Date: 2021–06–15
  31. By: Kheng, Veasna; Pan, Lei
    Abstract: The increase in dollarisation in Cambodia has been contrary to the general belief that macroeconomic and political stability help reduce dollarisation. We provide so far the first explanation for this counterfactual phenomenon. In doing so, this paper develops a theoretical model based on the framework ofUribe (1997) by including a dollar pricing index to amplify the network effects of using a foreign currency (denoted dollar). The dollar pricing index, a proportion of an economy denominated by the dollar, reduces the dollar’s transaction cost, thus increasing its usage in the economy. This increased use of the dollar further improves the experience of using it, hence results in higher usage of dollar in the price quotation. The positive interaction of using the dollar as a unit of account and a means of payment causes dollarisation continues to rise, even though the economy has achieved low inflation and political stability.
    Keywords: Dollarisation; Dollar pricing index; Network externalities
    JEL: E41 F41
    Date: 2021–07–10
  32. By: Pumplun, Luisa; Wiefel, Jennifer; Wächter, Katharina; Barth, Niklas; Buxmann, Peter
    Date: 2021–07–07
  33. By: Marie-Laure Mourre (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - UPEM - Université Paris-Est Marne-la-Vallée); Agnès Helme-Guizon; Carole Avril (Fédération française des diabétiques)
    Abstract: The aim of this exploratory research is to propose a conceptual model to identify the links between the Slow Diabetes online community program set up by the French Diabetes Federation for diabetic patients and the outcome in terms of well-being for the participants through increased empowerment. To this end, we mobilize three theoretical frameworks dealing respectively with the characteristics of empowerment systems (Shearer, 2009), the dimensions of empowerment (Cases, 2017) and the theory of self care (Richard and Shea, 2011). The thematic analysis of the exchanges on the platform confirms the relevance of this analytical framework.
    Abstract: L'objectif de cette recherche de nature exploratoire est de proposer un modèle conceptuel permettant d'identifier les liens entre le programme communautaire en ligne Slow Diabète mis en place par la Fédération Française des Diabétiques à destination des patients diabétiques et la résultante en termes de bien-être pour les participants via l'accroissement de leur autonomisation, appelée fréquemment empowerment. Nous mobilisons pour cela 3 cadres théoriques portant respectivement sur les caractéristiques des dispositifs d'empowerment (Shearer, 2009), les composantes de l'empowerment (Cases, 2017) et l'attention à soi et à sa maladie (Richard et Shea, 2011). L'analyse thématique des échanges sur la plateforme confirme la pertinence de ce cadre d'analyse.
    Date: 2020–12–15
  34. By: Ayesha Ali; Ihsan Ayyub Qazi
    Abstract: Fake news is a growing problem in developing countries with potentially far-reaching consequences. We conduct a randomized experiment in urban Pakistan to evaluate the effectiveness of two educational interventions to counter misinformation among low-digital literacy populations. We do not find a significant effect of video-based general educational messages about misinformation. However, when such messages are augmented with personalized feedback based on individuals' past engagement with fake news, we find an improvement of 0.14 standard deviations in identifying fake news. We also find negative but insignificant effects on identifying true news, driven by female respondents. Our results suggest that educational interventions can enable information discernment but their effectiveness critically depends on how well their features and delivery are customized for the population of interest.
    Date: 2021–07
  35. By: Nicholas Bloom; Tarek Alexander Hassan; Aakash Kalyani; Josh Lerner; Ahmed Tahoun
    Abstract: We identify novel technologies using textual analysis of patents, job postings, and earnings calls. Our approach enables us to identify and document the diffusion of 29 disruptive technologies across firms and labor markets in the U.S. Five stylized facts emerge from our data. First, the locations where technologies are developed that later disrupt businesses are geographically highly concentrated, even more so than overall patenting. Second, as the technologies mature and the number of new jobs related to them grows, they gradually spread across space. While initial hiring is concentrated in high-skilled jobs, over time the mean skill level in new positions associated with the technologies declines, broadening the types of jobs that adopt a given technology. At the same time, the geographic diffusion of low-skilled positions is significantly faster than higher-skilled ones, so that the locations where initial discoveries were made retain their leading positions among high-paying positions for decades. Finally, these technology hubs are more likely to arise in areas with universities and high skilled labor pools.
    JEL: O31 O32
    Date: 2021–07
  36. By: Alexander Lee
    Abstract: This note focuses on the importance of a mechanism guaranteeing the inseparable functionality of the technical components of a programmable money system rather than prescribing the specific nature of those components.
    Date: 2021–06–23
  37. By: Costa-Font, Joan (London School of Economics); Powdthavee, Nattavudh (University of Warwick)
    Abstract: We study the effect of lottery wins on social ties and support network in the United Kingdom. On average, we find that winning more in the lottery increases the probability of meeting friends on most days, which is consistent with the complementary effect of income on social ties. The opposite is true with regards to social ties held for more instrumental reasons such as talking to neighbors. Winning more in the lottery also lessens an individual support network consistently with a substitution for instrumental social ties. However, further robustness checks reveal that the average lottery effects are driven by the few outliers of very large wins in the sample, thus suggesting that small to medium-sized wins (
    Keywords: income, lottery, socialization effect, unearned income, friendships, neighborhood, social ties
    JEL: Z1
    Date: 2021–06
  38. By: ULLAH, NAZIM
    Abstract: Banks as a financial intermediary agent have a significant role in the development of the economy. The aim of the study is to examine the impact of EBSQ dimensions on the customer loyalty along with the mediation role of customer trust. The study has used primary method of data collection. A structural questionnaire has developed for 220 respondents from 5 commercial banks incorporated in Malaysia. To estimate data, SPSS software has been used. The findings imply that reliability, website design, customer service and support show statistically significant while privacy and security show negative impact on customer loyalty. While mediation role customer trust has significant impact on explaining relationship between EBSQ dimensions and customer loyalty. The study suggests a number of policy recommendations for the stakeholders.
    Keywords: Banks, EBSQ dimensions, SPSS and Malaysia
    JEL: N2
    Date: 2021–03–01
  39. By: Josh Lerner; Amit Seru; Nick Short; Yuan Sun
    Abstract: We develop a unique dataset of 24 thousand U.S. finance patents granted over last two decades to explore the evolution and production of financial innovation. We use machine learning to identify the financial patents and extensively audit the results to ensure their reasonableness. We find that patented financial innovation is substantial and economically important, with the number of annual grants expanding from a few dozen in the 1990s to over 2000 in the 2010s. The subject matter of financial patents has changed, consistent with the industry’s shift in revenue and value-added towards household investors and borrowers. The surge in financial patenting was driven by information technology firms and others outside of financial sector, which collectively accounted for 69% of the awards. The location of innovation has shifted, with banks moving this activity from regions with tight financial regulation to more permissive ones. High-tech regions have attracted financial innovation by payments, IT, and other non-financial firms. Turning to the source of these ideas, while academic knowledge remained associated with more valuable patents, citations in finance patents to academic papers, especially in those by banks, fell sharply.
    JEL: G20 O31
    Date: 2021–07

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