nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2021‒08‒30
33 papers chosen by
Bernardo Bátiz-Lazo
Northumbria University

  1. Start-ups, Gender Disparities, and the Fintech Revolution in Latin America By Batiz-Lazo, Bernardo; González-Correa, Ignacio
  2. Money Market Integration in Spain in the Ninetheen Century: The Role of the 1875-1885 Decade By Emma M., Iglesias; J. Carles, Maixé-Altés
  3. Central Bank Digital Currency in Historical Perspective: Another Crossroad in Monetary History By Michael D. Bordo
  4. Does financial inclusion reduce non-performing loans and loan loss provisions? By Ozili, Peterson Kitakogelu; Adamu, Ahmed
  5. Administering the Value-Added Tax on Imported Digital Services and Low-Value Imported Goods By John Brondolo
  6. Comparing minds and machines: implications for financial stability By Buckmann, Marcus; Haldane, Andy; Hüser, Anne-Caroline
  7. Impact of Roaming Regulation on Revenues and Prices of Mobile Operators in the EU By Lukasz Grzybowski; Ángela Munoz-Acevedo
  8. Unihedge -- A decentralized market prediction platform By Marko Corn; Nejc Ro\v{z}man
  9. Cyber Risk and Financial Stability: It’s a Small World After All By Ms. Jennifer A. Elliott; Christopher Wilson; Mr. Tanai Khiaonarong; Nigel Jenkinson; Frank Adelmann; Anastasiia Morozova; Tamas Gaidosch; Nadine Schwarz; Ibrahim Ergen
  10. Fragmentation, Price Formation, and Cross-Impact in Bitcoin Markets By Jakob Albers; Mihai Cucuringu; Sam Howison; Alexander Y. Shestopaloff
  11. The Joint Dynamics of Money and Credit Multipliers Since the Gold Standard Era By Luca Benati
  12. netivreg: Estimation of peer effects in endogenous social networks By Juan Estrada
  13. Tour d'horizon du droit financier Suisse : Crowdfunding - ICO - STO By Thibault Langlois-Berthelot; Ghislaine Bouillet-Cordonnier
  14. Online reviews and customer satisfaction: The use of Trustpilot by UK retail energy suppliers and three other sectors By Stephen Littlechild
  15. Crypto Wash Trading By Lin William Cong; Xi Li; Ke Tang; Yang Yang
  16. Community Detection in Cryptocurrencies with Potential Applications to Portfolio Diversification By J. Gavin; M. Crane
  17. Chat more and contribute better: An empirical study of a knowledge-sharing community By Chen, Xiaomeng; Forman, Christopher; Kummer, Michael E.
  18. The currency that came in from the cold - Capital controls and the information content of order flow By Francis Breedon; Thórarinn G. Pétursson; Paolo Vitale
  19. ¿Qué tan rígidos son los precios en línea? Evidencia para Perú usando Big Data By Marco Vega; Erick Lahura; Hilary Coronado
  20. Cryptocurrencies: An empirical view from a Tax Perspective By Andreas Thiemann
  21. Two-sided Markets, Pricing, and Network Effects By Jullien, Bruno; Pavan, Alessandro; Rysman, Marc
  22. A Time-Varying Network for Cryptocurrencies By Li Guo; Wolfgang Karl H\"ardle; Yubo Tao
  23. Rank Response Functions in an Online Learning Environment By Tim Klausmann; Valentin Wagner; Isabell Zipperle
  24. Total consumer time: A new approach to identifying digital gatekeepers By Gösser, Niklas; Gürer, Kaan; Haucap, Justus; Meyring, Bernd; Michailidou, Asimina; Schallbruch, Martin; Seeliger, Daniela; Thorwarth, Susanne
  25. Paths to improve credit access for women in Madagascar. Preferences for Digital and Conventional Credit By Possner, Annkathrin; Mußhoff, Oliver; Sarfo, Yaw; Danne, Michael
  26. Effective Training Through a Mobile App: Evidence from a Randomized Field Experiment By Chua, Kenn; Li, Qingxiao; Rahman, Khandker Wahedur; Yang, Xiaoli
  27. The social media revolution and shifts in the climate change discourse By Drieschova, Alena
  28. From social netizens to data citizens: variations of GDPR awareness in 28 European countries By Rughinis, Razvan; Rughinis, Cosima; Vulpe, Simona Nicoleta; Rosner, Daniel
  29. Redistribution of wealth through cross border financial transactions: A closer look By Nizam, Ahmed Mehedi
  30. Posicionamiento de los hoteles marplatenses en las plataformas de reservas online: atributos relevantes para los usuarios By Marisquerena, Sergio Ezequiel; Zanfrillo, Alicia Inés; Artola, María Antonia
  31. Digital payments in China: adoption and interactions among applications By Dominique Torre; Qing Xu
  32. Money Creation in Decentralized Finance: A Dynamic Model of Stablecoin and Crypto Shadow Banking By Ye Li; Simon Mayer
  33. Spatial Distribution of Supply and the Role of Market Thickness: Theory and Evidence from Ride Sharing By Soheil Ghili; Vineet Kumar

  1. By: Batiz-Lazo, Bernardo; González-Correa, Ignacio
    Abstract: This chapter considers the process of entrepreneurial activity to deploy financial technologies (fintech) through mandate-specific new companies in Latin America. We deal with important historical issues such as defining the term, establishing temporal and industrial activity boundaries, positioning this particular process within other organizational forms typical of the region, the role of women and other relevant issues such as the modernization of retail payments and personal lending. A central question is whether fintech start-ups have had a 'scissor' effect in the entrepreneurial process of Latin America: at the base of the pyramid (that is, reducing frictions to support overall entrepreneurial activity, increasing financial inclusion, etc.) and near the top (by creating new business leaders). As a result, this chapter provides an initial assessment of gender disparities and barriers enabling women entrepreneurs in the fintech ecosystem.
    Keywords: fintech, gender, women, entrepreneurship, startups, Latin America
    JEL: G2 J16 M13 N26
    Date: 2021–08
  2. By: Emma M., Iglesias; J. Carles, Maixé-Altés
    Abstract: Are transaction costs and half-lives between two cities the same in both directions in traditional city-based monetary systems? Market conditions and political circumstances may not justify this assumption; and we provide evidence that it does not hold in the 1825-1885 period in Spain. Moreover, we show empirical evidence that market integration in Spain from 1875 to 1885 was a slow process of monetary unification with decreasing transaction costs, and a very inefficient convergence. Therefore, full integration did not happen in the period 1875-1885 and had to wait until mid-1880s, when the Spanish money-market was unified due to financial innovations.
    Keywords: Integration of monetary markets; Nineteenth century; Monetary and financial history; Market Convergence and Efficiency; Western Europe; Private Finance, Capital Markets
    JEL: E02 E42 F02 F15 F31 F36 L10 N13 N73
    Date: 2021–08–22
  3. By: Michael D. Bordo
    Abstract: Digitalization of Money is a crossroad in monetary history. Advances in technology has led to the development of new forms of money: virtual (crypto) currencies like bitcoin; stable coins like libra/diem; and central bank digital currencies (CBDC) like the Bahamian sand dollar. These innovations in money and finance have resonance to earlier shifts in monetary history: 1) The shift in the eighteenth and nineteenth century from commodity money (gold and silver coins) to convertible fiduciary money and inconvertible fiat money; 2) the shift in the nineteenth and twentieth centuries from central bank notes to a central bank monopoly; 3) Then evolution since the seventeenth century of central banks and the tools of monetary policy. This paper analyzes the arguments for a CBDC through the lens of monetary history. The bottom line is that the history of transformations in monetary systems suggests that technical change in money is inevitably driven by the financial incentives of a market economy. Government has always had a key role in the provision of outside money, which is a public good. Government has also regulated inside money provided by the private sector. This held for fiduciary money and will likely hold for digital money. CBDC could make monetary policy more efficient, and it could transform the international monetary and payments systems.
    JEL: E42 E52 E58
    Date: 2021–08
  4. By: Ozili, Peterson Kitakogelu; Adamu, Ahmed
    Abstract: We examine whether countries that have high levels of financial inclusion have fewer non-performing loans and loan loss provisions in their banking sectors. The fixed effect panel regression methodology was used to analyse the effect of financial inclusion on bank non-performing loans and loan loss provisions. Using data from 48 countries, we find that greater formal account ownership is associated with high non-performing loans. Bank loan loss provisions are fewer in countries that have high levels of financial inclusion only when financial inclusion is achieved through the combined use of formal account ownership, bank branch supply and ATM supply. Also, non-performing loans are fewer in countries that experience economic boom and high levels of financial inclusion.
    Keywords: financial inclusion, non-performing loans, loan loss provisions, financial stability, bank stability, ATM, formal account ownership, credit risk, access to finance.
    JEL: G00 G20 G21 G23 G28 G29 O31
    Date: 2021–08
  5. By: John Brondolo
    Abstract: This technical note and manual (TNM) addresses the following questions: (1) What are the main challenges in administering the value-added tax on imported digital services and the measures that countries have introduced to address the challenges?; (2) What are the main challenges in administering the value-added tax on low-value imported goods and the measures that countries have introduced to address the challenges? ;and (3) What are the key tasks in implementing the measures for improving the administration of the value-added tax on imported digital services and low-value imported goods?
    Date: 2021–05–21
  6. By: Buckmann, Marcus (Bank of England); Haldane, Andy (Bank of England); Hüser, Anne-Caroline (Bank of England)
    Abstract: Is human or artificial intelligence more conducive to a stable financial system? To answer this question, we compare human and artificial intelligence with respect to several facets of their decision-making behaviour. On that basis, we characterise possibilities and challenges in designing partnerships that combine the strengths of both minds and machines. Leveraging on those insights, we explain how the differences in human and artificial intelligence have driven the usage of new techniques in financial markets, regulation, supervision, and policy making and discuss their potential impact on financial stability. Finally, we describe how effective mind-machine partnerships might be able to reduce systemic risks.
    Keywords: Artificial intelligence; machine learning; financial stability; innovation; systemic risk
    JEL: C45 C55 C63 C81
    Date: 2021–08–20
  7. By: Lukasz Grzybowski; Ángela Munoz-Acevedo
    Abstract: We empirically assess the impact of the EU roaming regulation on mobile operators’ average revenues per user (ARPU) and retail prices. Using a differences-in-difference approach, hedonic price regressions and detailed operator and plan-level data we find that the regulation decreased mobile operator’s revenues per user, while it had no impact on tariffs during the latest phase of the regulation.
    Keywords: roaming, mobile telecommunications, regulation
    JEL: L13 L50 L96
    Date: 2021
  8. By: Marko Corn; Nejc Ro\v{z}man
    Abstract: Unihedge is a decentralized platform for prediction markets with a novel approach to prediction market. Using Harberger Tax (HTAX) economic policies a new type of prediction market was build named HTAX prediction market. HTAX prediction market derivates from Dynamic PariMutuel (DPM) type of prediction markets thus offering its users an unlimited liquidity for any preferred time horizon. It tries to solve some problems of DPM by introducing a new incentive mechanism to support early information incorporation and a protection against share readjustment for hedgers. Platform also offers users other traits such as opportunity to create and operate prediction markets which is compensated by collecting trading fees from its user, or ability to earn fees from every trade by participate in staking process, or get involved with Decentralised Autonomous Organisation (DAO) where they can vote on various topics from platform development to allocation of funds.
    Date: 2021–08
  9. By: Ms. Jennifer A. Elliott; Christopher Wilson; Mr. Tanai Khiaonarong; Nigel Jenkinson; Frank Adelmann; Anastasiia Morozova; Tamas Gaidosch; Nadine Schwarz; Ibrahim Ergen
    Abstract: The ability of attackers to undermine, disrupt and disable information and communication technology systems used by financial institutions is a threat to financial stability and one that requires additional attention.
    Keywords: Cyber risk;Cybersecurity;Financial regulation;operational resilience;risk management; information sharing; market infrastructure; sharing of information; cybercrime support services; evolution of cyberattack; Financial sector stability; Financial sector risk; Financial stability assessment; Financial sector; Global
    Date: 2020–12–07
  10. By: Jakob Albers; Mihai Cucuringu; Sam Howison; Alexander Y. Shestopaloff
    Abstract: In light of micro-scale inefficiencies induced by the high degree of fragmentation of the Bitcoin trading landscape, we utilize a granular data set comprised of orderbook and trades data from the most liquid Bitcoin markets, in order to understand the price formation process at sub-1 second time scales. To achieve this goal, we construct a set of features that encapsulate relevant microstructural information over short lookback windows. These features are subsequently leveraged first to generate a leader-lagger network that quantifies how markets impact one another, and then to train linear models capable of explaining between 10% and 37% of total variation in $500$ms future returns (depending on which market is the prediction target). The results are then compared with those of various PnL calculations that take trading realities, such as transaction costs, into account. The PnL calculations are based on natural $\textit{taker}$ strategies (meaning they employ market orders) that we associate to each model. Our findings emphasize the role of a market's fee regime in determining its propensity to being a leader or a lagger, as well as the profitability of our taker strategy. Taking our analysis further, we also derive a natural $\textit{maker}$ strategy (i.e., one that uses only passive limit orders), which, due to the difficulties associated with backtesting maker strategies, we test in a real-world live trading experiment, in which we turned over 1.5 million USD in notional volume. Lending additional confidence to our models, and by extension to the features they are based on, the results indicate a significant improvement over a naive benchmark strategy, which we also deploy in a live trading environment with real capital, for the sake of comparison.
    Date: 2021–08
  11. By: Luca Benati
    Abstract: Since the XIX century, technological progress has allowed commercial banks to create ever greater amounts of broad money and credit starting from a unit of monetary base. Crucially, however, at the very low frequencies the relative amounts of the two aggregates created out of a unit of base money have remained unchanged over time in each of the 42 countries I analyze. This finding questions the widespread notion that, since WWII, credit has become disconnected from broad money, and suggests that, except for their greater productivity at creating broad money and credit out of base money, today’s commercial banks are not fundamentally different from their XIX century’s counterparts. The implication is that only the ascent of shadow banks has introduced a disconnect between broad money and credit.
    Keywords: Money; credit; Lucas critique; financial crises.
    Date: 2021–08
  12. By: Juan Estrada (Emory University)
    Abstract: I present the netivreg command, which implements the generalized three-stage least-squares (G3SLS) estimator for the endogenous linear-in-means model developed in Estrada et al. (2020, “On the Identification and Estimation of Endogenous Peer Effects in Multiplex Networks"). The G3SLS procedure utilizes full observability of a two-layered multiplex network data structure using Stata 16's new multiframes capabilities and Python integration. Implementations of the command utilizing simulated data as well as three years' worth of data on peer-reviewed articles published in top general-interest journals in economics in Estrada et al. (2020) are also included.
    Date: 2021–08–07
  13. By: Thibault Langlois-Berthelot (EHESS - École des hautes études en sciences sociales, Kedge BS - Kedge Business School); Ghislaine Bouillet-Cordonnier (Cabinet d'avocats)
    Abstract: L'avènement des nouvelles technologies du numérique fait aujourd'hui émerger de nouveaux usages en matière de financement. La digitalisation progressive des méthodes de levées de fonds bouleverse les relations commerciales et les régimes juridiques relatifs au triptyque conventionnel régissant les créanciers, les débiteurs et les porteurs de projets. En ce sens, le financement participatif numérique permet, grâce à des plateformes en ligne (Section I) et parfois couplées à une Technologie de Registre Distribué (TRD1) (Section II), d'optimiser certains processus de financements des entreprises.
    Keywords: Droit Comparé,Droit économie,Droit suisse
    Date: 2021–04–28
  14. By: Stephen Littlechild (University of Birmingham and CJBS)
    Keywords: online reviews, customer satisfaction, customer feedback, Trustpilot, retail energy market, supermarkets, banks, mobile phone providers
    JEL: L15 L84 L94
    Date: 2020–09
  15. By: Lin William Cong; Xi Li; Ke Tang; Yang Yang
    Abstract: We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions on 29 cryptocurrency exchanges. Regulated exchanges feature patterns consistently observed in financial markets and nature; abnormal first-significant-digit distributions, size rounding, and transaction tail distributions on unregulated exchanges reveal rampant manipulations unlikely driven by strategy or exchange heterogeneity. We quantify the wash trading on each unregulated exchange, which averaged over 70% of the reported volume. We further document how these fabricated volumes (trillions of dollars annually) improve exchange ranking, temporarily distort prices, and relate to exchange characteristics (e.g., age and userbase), market conditions, and regulation.
    Date: 2021–08
  16. By: J. Gavin; M. Crane
    Abstract: In this paper, the cross-correlations of cryptocurrency returns are analysed. The paper examines one years worth of data for 146 cryptocurrencies from the period January 1 2019 to December 31 2019. The cross-correlations of these returns are firstly analysed by comparing eigenvalues and eigenvector components of the cross-correlation matrix C with Random Matrix Theory (RMT) assumptions. Results show that C deviates from these assumptions indicating that C contains genuine information about the correlations between the different cryptocurrencies. From here, Louvain community detection method is applied as a clustering mechanism and 15 community groupings are detected. Finally, PCA is completed on the standardised returns of each of these clusters to create a portfolio of cryptocurrencies for investment. This method selects a portfolio which contains a number of high value coins when compared back against their market ranking in the same year. In the interest of assessing continuity of the initial results, the method is also applied to a smaller dataset of the top 50 cryptocurrencies across three time periods of T = 125 days, which produces similar results. The results obtained in this paper show that these methods could be useful for constructing a portfolio of optimally performing cryptocurrencies.
    Date: 2021–08
  17. By: Chen, Xiaomeng; Forman, Christopher; Kummer, Michael E.
    Abstract: We analyze whether an informal second channel for communication can improve the efficiency of knowledge transfer in an electronic network of practice. We explore this question by analyzing the effect of chat rooms in the well-known Q&A forum Stack Overflow. We identify the causal effect using a difference-in-differences approach, which exploits a feed functionality that non-selectively pushed all questions from the Q&A into the relevant chat rooms. We report two main findings: First, chat rooms reduced the time until a question in the main Q&A received a satisfactory answer. Second, chat rooms disproportionately benefited new users who asked low-quality questions. Our study has clear managerial implications: A second channel for communication can complement the main channel in online communities to enhance both efficiency and inclusion.
    Keywords: Knowledge sharing,Online community,User contribution
    JEL: L17 O31 O36
    Date: 2021
  18. By: Francis Breedon; Thórarinn G. Pétursson; Paolo Vitale
    Abstract: We analyse how capital controls affect FX microstructure, using as a case study the introduction and subsequent removal of controls in Iceland. We use a VAR of private order flow, Central Bank order flow and EURISK that allows for contemporaneous feedback effects to analyse the impact and information content of trades and find that controls have profound effects. When controls were introduced, volume plummeted, the information content of trading activity declined and became less responsive to macro news. While there was no recovery of trading volume after controls were abolished, the information content and responsiveness of trading activity increased sharply.
    JEL: C32 F31 F32 G14 G15
    Date: 2021–06
  19. By: Marco Vega (Departamento de Economía de la Pontificia Universidad Católica del Perú); Erick Lahura (Departamento de Economía de la Pontificia Universidad Católica del Perú); Hilary Coronado (Universidad Científica del Sur)
    Abstract: Motivado por el desarrollo del comercio electrónico y la importancia de la rigidez de precios para explicar los efectos reales de choques monetarios, el presente trabajo de investigación tiene como objetivo evaluar el grado de rigidez de los precios en línea en el Perú. Para ello, se analizan 4.5 millones de precios publicados diariamente en la pagina web de una tienda por departamentos que, durante el periodo de análisis, tuvo una participación de mercado de aproximadamente 50 por ciento. Esta gran cantidad de datos o “big data” fueron obtenidos a través de la técnica de raspado de datos de la web o “web scraping”, la cual fue aplicada diariamente entre los años 2016 y 2020. Tomando en cuenta la frecuencia de cambio de precios y la duración de los mismos, los resultados indican que los precios en línea en el Perú son menos rígidos que en otros países. JEL Classification-JE: C55, C81, E31, L11, L81
    Keywords: Rigidez de precios, precios de internet, web scraping, big data.
    Date: 2021
  20. By: Andreas Thiemann (European Commission - JRC)
    Abstract: This paper sheds light on the scarce empirical evidence on cryptocurrency users and use types. Based on the only available empirical estimate (shared by Chainalysis), this paper simulates the revenue potential from taxing Bitcoin capital gains in the EU. Total estimated Bitcoin capital gains in the EU amount to 12.7 billion EUR in 2020, including 3.6 billion EUR of realized gains. Applying national tax rules on capital gains from shares to those from Bitcoin yields a simulated tax revenue of about 850 million EUR in 2020. This paper is the first to empirically assess the tax revenue potential of capital gains from Bitcoin in the EU. While most of the empirical cryptocurrency literature is based on time-series data, this paper relies on dis-aggregated country-level data. The findings show that revenue from taxing cryptocurrencies is non-negligible and will be if the market of cryptocurrencies continues to grow.
    Keywords: Capital gains taxation, cryptocurrencies, Bitcoin.
    JEL: G19 G23 H24
    Date: 2021–08
  21. By: Jullien, Bruno; Pavan, Alessandro; Rysman, Marc
    Abstract: The chapter has 9 sections, covering the theory of two-sided markets and related empirical work. Section 1 introduces the reader to the literature. Section 2 covers the case of markets dominated by a single monopolistic rm. Section 3 discusses the theoretical literature on competition for the market, focusing on pricing strategies that rms may follow to prevent entry. Section 4 discusses pricing in markets in which multiple platforms are active and serve both sides. Section 5 presents alternative models of platform competition. Section 6 discusses richer matching protocols whereby platforms pricediscriminate by granting access only to a subset of the participating agents from the other side and discusses the related literature on matching design. Section 7 discusses identication in empirical work. Section 8 discusses estimation in empirical work. Finally, Section 9 concludes.
    Keywords: Two-sided market; platform; pricing; network effects; matching
    Date: 2021–08–21
  22. By: Li Guo; Wolfgang Karl H\"ardle; Yubo Tao
    Abstract: Cryptocurrencies return cross-predictability and technological similarity yield information on risk propagation and market segmentation. To investigate these effects, we build a time-varying network for cryptocurrencies, based on the evolution of return cross-predictability and technological similarities. We develop a dynamic covariate-assisted spectral clustering method to consistently estimate the latent community structure of cryptocurrencies network that accounts for both sets of information. We demonstrate that investors can achieve better risk diversification by investing in cryptocurrencies from different communities. A cross-sectional portfolio that implements an inter-crypto momentum trading strategy earns a 1.08% daily return. By dissecting the portfolio returns on behavioral factors, we confirm that our results are not driven by behavioral mechanisms.
    Date: 2021–08
  23. By: Tim Klausmann (Johannes Gutenberg University Mainz); Valentin Wagner (Johannes Gutenberg University Mainz); Isabell Zipperle (Johannes Gutenberg University Mainz)
    Abstract: We estimate rank response functions after receiving rank-order feedback in an online learning platform. We find that the shapes of the rank response functions depend on the outcome measure under consideration. For our effort measure, i.e., whether learners continue to interact with the platform, we can reject neither a linear nor a U-shaped rank response function. For our performance measure, i.e., correctly solved exercises, we find no clear pattern overall but suggestive evidence for a linearly decreasing rank response function for individuals in the lower half of the ability distribution, i.e., the lower the rank the lower the performance.
    Keywords: Rank response function, rank-order feedback, education, online learning platform
    JEL: I21 D83
    Date: 2021–08–16
  24. By: Gösser, Niklas; Gürer, Kaan; Haucap, Justus; Meyring, Bernd; Michailidou, Asimina; Schallbruch, Martin; Seeliger, Daniela; Thorwarth, Susanne
    Abstract: [Introduction:] The route to customers is becoming increasingly digital, for any business. There is hardly any business that is not focussing on reaching customers online. The Covid-19 pandemic has further accelerated this trend. In many markets, digital platforms have become essential tools for the sale of goods and services. On the one hand, there are transaction platforms for specific goods and services. They are specialist providers in their fields. Consumers access the relevant specialist to directly search for the product or service they intend to purchase, and they expect to directly conclude transactions on the platform ("transaction platforms"). These platforms typically generate the majority of their revenues from sales to consumers or commissions from these sales. On the other hand, there are attention platforms that provide information, entertainment and/or other services (e-mail accounts, translations, search functionality, social media contacts, software use, etc.) to users ("attention platforms"). These platforms are often free of charge for consumers and they generate most of their revenues from advertising. In order to maximize revenues these platforms often aim at maximizing the time that consumers spend within their ecosystems so as to channel consumers' attention to advertising clients or - in case of vertical integration - also to their own offerings. Through the selection of content such as ranking search results and also through advertising these attention platforms can have significant impact on which products receive consumer attention in the first place which enables them to affect and even steer competition. If platforms have such a significant effect on consumer attention that they can steer consumers towards some products and away from others, they may factually become a gatekeeper for these markets. (...)
    Date: 2021
  25. By: Possner, Annkathrin; Mußhoff, Oliver; Sarfo, Yaw; Danne, Michael
    Keywords: Agricultural Finance, Community/Rural/Urban Development, Agribusiness
    Date: 2021–08
  26. By: Chua, Kenn; Li, Qingxiao; Rahman, Khandker Wahedur; Yang, Xiaoli
    Keywords: Productivity Analysis, International Development, Research Methods/Statistical Methods
    Date: 2021–08
  27. By: Drieschova, Alena
    Abstract: The paper analyses the role of social media in shifting the climate change discourse in the North Atlantic region. Changes in the media environment have removed traditional gatekeepers of information dissemination and empowered new kinds of actors to reach large audiences. Yet, the techniques and the particular messaging through which these audiences can be reached has had to change as well. Messages spread widely on social media if they get shared, liked, retweeted frequently. They need to provoke a reaction in their audience, that leads the audience to actively respond to the messages, be it only with a mouse click. Within the climate change field two new kinds of actors have the potential to seize upon this new opportunity structure: climate sceptics and pro-climate activist social movements. Through a qualitative social media analysis, this paper compares the specific messaging strategies these two communities have deployed. It finds that the climate strike movement, notably led by Greta Thunberg, could effectively seize the opportunities social media provide to reach large audiences. By contrast, climate sceptics have been significantly less successful. Counter-intuitively, the paper finds that digitization can not only empower tech-savvy individuals, but also specific, comparatively low tech, and hitherto marginalized individuals. Notably, young women, if they can draw on their vulnerability, aesthetics, and emotional messaging, can acquire high attention scores when advocating for political change.
    Keywords: Climate change,social media,Fridays for Future,climate strike,Greta Thunberg,climate skepticism,social movements,populism,discourse,aesthetics,images
    Date: 2021
  28. By: Rughinis, Razvan; Rughinis, Cosima; Vulpe, Simona Nicoleta; Rosner, Daniel
    Abstract: We studied variability in General Data Protection Regulation (GDPR) awareness in relation to digital experience in the 28 European countries of EU27-UK, through secondary analysis of the Eurobarometer 91.2 survey conducted in March 2019 (N = 27,524). Education, occupation, and age were the strongest sociodemographic predictors of GDPR awareness, with little influence of gender, subjective economic well-being, or locality size. Digital experience was significantly and positively correlated with GDPR awareness in a linear model, but this relationship proved to be more complex when we examined it through a typological analysis. Using an exploratory k-means cluster analysis we identified four clusters of digital citizenship, across both dimensions of digital experience and GDPR awareness: the off-line citizens (22%), the social netizens (32%), the web citizens (17%), and the data citizens (29%). The off-line citizens ranked lowest in internet use and GDPR awareness; the web citizens ranked at about average values, while the data citizens ranked highest in both digital experience and GDPR knowledge and use. The fourth identified cluster, the social netizens, had a discordant profile, with remarkably high social network use, below average online shopping experiences, and low GDPR awareness. Digitalization in human capital and general internet use is a strong country-level correlate of the national frequency of the data citizen type. Our results confirm previous studies of the low privacy awareness and skills associated with intense social media consumption, but we found that young generations are evenly divided between the rather carefree social netizens and the strongly invested data citizens. In order to achieve the full potential of the GDPR in changing surveillance practices while fostering consumer trust and responsible use of Big Data, policymakers should more effectively engage the digitally connected yet politically disconnected social netizens, while energizing the data citizens and the web citizens into proactive actions for defending the fundamental rights to private life and data protection.
    Keywords: Privacy awareness; data citizenship; GDPR; Eurobarometer survey; cluster analysis
    JEL: Y80
    Date: 2021–09
  29. By: Nizam, Ahmed Mehedi
    Abstract: Contrary to existing literature, here we consider the foreign exchange reserve balance of a particular country as an indicator of how much goods, services and/or physical asset the country has transferred to the rest of the world in exchange of some fiat foreign currencies. On the other hand, the reserve balances of the rest of the world denominated in the currency of that particular country can be considered as the amount of goods, services and/or physical assets that the particular country has received from the rest of the world in exchange of its own fiat currencies. Hence, if we subtract the second quantity from the first one, we get an estimate of the extent of net non-monetary wealth that the particular country has transferred so far to the rest of the world in exchange of some fiat foreign money. We calculate the amount of net non-monetary wealth (thus defined) transferred to and from some major economies stemming from cross border financial transactions and analyze their long term and short term dynamics using VECM. The main objective of this study is to give a new perspective to what we conventionally mean by foreign exchange reserve of a country: Instead of assuming the reserve balance of a country as an asset we consider it as a measure of gross wealth (i.e., goods, services and physical asset) the country has transferred so far to other countries around the globe in exchange of some paper currencies with no intrinsic value.
    Keywords: Cross border trade, wealth redistribution, hard currencies
    JEL: E01 E21 F14 F41
    Date: 2021–08–25
  30. By: Marisquerena, Sergio Ezequiel; Zanfrillo, Alicia Inés; Artola, María Antonia
    Abstract: La amplia difusión de las herramientas de la web 2.0 cambió la modalidad en que el sector hotelero desarrolla la comercialización de servicios y la comunicación con sus huéspedes. En la actualidad, el desempeño de las empresas hoteleras es afectado por las opiniones y valoraciones consignadas en las plataformas digitales de turismo y redes sociales, donde los usuarios recomiendan y aconsejan a otros, por los servicios recibidos en los hoteles donde se hospedaron. Las exigencias de los usuarios respecto de la calidad de los servicios y la transparencia de las operaciones fundamentan el propósito de caracterizar el desempeño y posicionamiento de los hoteles marplatenses en la mente de los usuarios. Ello implica identificarlas herramientas que facilitan el desarrollo de la comunicación, interacción, comercialización de los servicios y la conformación de la reputación online de los establecimientos hoteleros, como así también a identificar los perfiles de viajeros con mayor participación en el medio digital.
    Keywords: Hoteles; World Wide Web; Reputación;
    Date: 2019–09
  31. By: Dominique Torre (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); Qing Xu (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)
    Abstract: Alipay and WeChat Pay, the mobile payment services of Alibaba and Tencent, rapidly spread out in China from the early 2010s. Their successes motivate three open questions: (i) why the two companies did not really compete to gain the exclusivity of their clients? (ii) why the installed basis of the incumbent did not prevent the success of the entrant? (iii) why the new entry accelerated the dffusion of the incumbent's solutions? This paper elaborates an adoption model which encapsulates the distinctive features of the two service providers. It points out that complementaries between the two solutions (dfferentiated services offered to clients, decreasing adoption costs and contrasting business models) can explain the interest of both service providers to avoid any strong competition. During the adoption phase, Alipay and WeChat had interest to a mutual development as soon as they did not offered the same product, with the same business model. In this situation, every improvement of the technology of each operator increased the profit of the other. This strategic complementarity effect between the two competitors could however decrease during time their incentive to innovate.
    Keywords: strategic complementarities,online payment,electronic wallets,payments in China,mobile-payment,paiement mobile,complémentarités stratégiques,paiement en ligne,porte-monnaie électronique,paiements en Chine
    Date: 2020
  32. By: Ye Li; Simon Mayer
    Abstract: Stablecoins rise to meet the demand for safe assets in decentralized finance. Stablecoin issuers transform risky reserve assets into tokens of stable values, deploying a variety of tactics. To address the questions on the viability of stablecoins, regulations, and the initiatives led by large platforms, we develop a dynamic model of optimal stablecoin management and characterize an instability trap. The system is bimodal: stability can last for a long time, but once stablecoins break the buck following negative shocks, volatility persists. Debasement triggers a vicious cycle but is unavoidable as it allows efficient risk sharing between the issuer and stablecoin users.
    Date: 2021
  33. By: Soheil Ghili; Vineet Kumar
    Abstract: This paper studies the effects of economies of density in transportation markets, focusing on ridesharing. Our theoretical model predicts that (i) economies of density skew the supply of drivers away from less dense regions, (ii) the skew will be more pronounced for smaller platforms, and (iii) rideshare platforms do not find this skew efficient and thus use prices and wages to mitigate (but not eliminate) it. We then develop a general empirical strategy with simple implementation and limited data requirements to test for spatial skew of supply from demand. Applying our method to ride-level, multi-platform data from New York City (NYC), we indeed find evidence for a skew of supply toward busier areas, especially for smaller platforms. We discuss the implications of our analysis for business strategy (e.g., spatial pricing) and public policy (e.g., consequences of breaking up or downsizing a rideshare platform)
    Date: 2021–08

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