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on Payment Systems and Financial Technology |
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Issue of 2021‒09‒13
forty papers chosen by |
| By: | Ha, Seungyeon; Kim, Jong Pyo; Park, Yu Jun |
| Abstract: | In recent years, there has been a vigorous discussion on digital platform due to their emerging significance in the digital ecosystem. Despite common interests in digital platform, the comprehensive literature review on the topic is still limited. In addition, no study has examined whether there is a link or gap between research on digital platform and reality in global digital platform markets. This study aims to offer a systematic and interdisciplinary review of the literature on digital platforms by collecting and analyzing a sample of 703 articles published from January 2018 to January of 2021. |
| Keywords: | Digital Platform,Online Platform,E-Commerce Platform,Social Media Platform,Platform Hegemony,Interaction |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238025&r= |
| By: | Verfaillie, Bryan; Van der Wee, Marlies; Verbrugge, Sofie |
| Abstract: | Digital platforms are omnipresent in our society. For example, streaming movies via Netflix, interacting with friends through social media, or using Deliveroo to order your meal. Digital platforms and digital marketplaces caused a big impact on the value creation process within different application domains. Actual digital ecosystems have appeared and the value propositions of traditional players within different domains got challenged by new and more integrated offers. Within this setting, also smaller-scale initiatives try to find their position. Local initiatives such as energy management platforms to link residents with (renewable) energy suppliers, or community platforms to link neighbours and city or village initiatives, especially in "online-only" times are appearing fast. Although the number of both successful and failed cases is constantly growing, systematic understanding of the reasons behind this, is still lacking. This paper wants to add to this understanding by analysing digital platform initiatives from different points of view. The overall research question tackled in this paper is to determine critical characteristics that can impact the success of the digital, multi-sided platform business model. To achieve this, a conceptual framework that allows to analyse and compare platforms is presented. The framework is then applied on different existing platform solutions, in a broad range of application domains, to identify specific design choices and compare the different platforms. Overall, more general insights in the role of network effects, pricing strategy, and other key features that impact the risk of failure, are obtained. The analyses indicate that positive network effects are predominantly present which is important for the growth of the user base. Pricing schemes indicate that general customers do not want to spend a lot of money to use a platform. Therefore, they usually can use it for free. Advertisers play a crucial role in the revenue stream for a platform but too much ads can irritate the end user. Platforms also tend to use third parties for services which reduces the time to market and lowers the investment risk. Platforms immediately benefit from other technological advantages like scalability. Due to the low homing-costs for users, there is room for competition in each domain but of course platforms try to differentiate their offer from their competitors. |
| Keywords: | Digital Platforms,Multi-Sided Platforms,Network Effects,Pricing,Multi-Homing Cost |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238059&r= |
| By: | Prado, Tiago S. |
| Abstract: | In this conceptual paper, I propose a framework for measuring the market power of digital platforms. The rise of big technology companies that act both as intermediary platforms and providers of services and goods in several markets has heightened concerns about potential economic harms brought by the concentrated structure of the digital economy. However, the operationalization of market power in the platform economy and the procedures to define which digital platforms and markets should be targeted by pro-competitive remedies, either under a competition policy framework or under a regulatory regime, remain highly contested. I demonstrate that large technology platforms can leverage their market power across markets in the digital economy to make their end users unlikely to switch to smaller competitors, even when they offer better services. Based on this analysis, I argue that market-specific approaches, such as the commonly used Significant Market Power (SMP) framework, would have limited impact in promoting competition in digital markets. I then propose a new set of tools aimed to identify the market power of digital platforms in two-sided markets and suggest some policy alternatives to harness the potential of pro-competitive remedies in the digital economy. |
| Keywords: | digital platform,digital economy,market power,competition policy,regulation |
| JEL: | L12 L13 L41 L44 L51 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238048&r= |
| By: | Bertram Steininger |
| Abstract: | After solving the double-spending problem of digital tokens with blockchain technology, the market for digital tokens has increased enormously over the last few years. Mostly real assets, which are not easy to divide, costly, and involve regulation effort, are identified as the most suitable assets for digital tokenization – properties and land are obviously among them. Even if the key element of solving the double-spending of digital tokens – the blockchain – is widely known, the specific regulations and procedures of this young and its infancy being technology are still not been researched and analyzed exactly. This paper analyzes the theoretical benefits and challenges of real estate securitization via blockchain and how different these “new” assets are from traditional securitizations based on empirical data (return, risk, holding ratios, fee, pricing) of the first token transactions. |
| Keywords: | blockchain; emprical; real estate tokenization; securitization |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_109&r= |
| By: | Noam, Eli |
| Abstract: | Cryptocurrencies provide an important dimension of innovation to the evolution of the exchange medium we call money. There are now over 4,000 such currencies, and their potential and volume is growing. The impact of such currencies for money laundering, law enforcement, and banking supervision have been extensively discussed on the transaction level. But this is the "micro" level of analysis. What has been rare is a "macro" level discussion of the impact on the monetary system of a country. Central banks, which are institutions tasked with providing monetary stability, will see their problems rise while the power of their traditional tools to control money supply and interest rates - such as reserve requirements and the discount rates - is declining. But the new digital technologies - such as distributed ledgers - and new approaches provide regulatory bodies also with new and potentially powerful tools. The task for central banks and policy makers is to create new approaches to use, regulate, and incent them in shaping the macro-economic path of their economy. The paper will propose several of these approaches. This is of particular importance in an economic recovery post coronavirus. In the process, central banks will also, predictably, issue their own digital currencies, and a tiny number of those will become global super-currencies. This will create a new type of issues. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238043&r= |
| By: | Tanveer, Muhammad; Kaur, Harsandaldeep; Paruthi, Mandakini; Thomas, George; Mahmood, Haider |
| Abstract: | Background: The mobile phone shopping behavior of adults has been extensively studied in the past. However, given the novelty and dynamism of this domain and the multitude of new contributing factors coming into play, such studies soon become obsolete. Consequently, this phenomenon needs to be studied frequently within the context of contemporary social, technological, and market norms. In the same league, there is a pressing need to empirically examine the mobile shopping behavior of young adults in Pakistan. In this context, the last known such study was published in 2008. This paper provides a study of factors influencing mobile phone shopping behavior within the context of young adults in Pakistan. Methods: A questionnaire-based survey consisting of a five-point Likert scale was conducted. The survey was disseminated via social media, and participation was voluntary. Over a period of two weeks, 416 respondents completed the survey to report mobile shopping behavior. We employed Confirmatory Factor Analysis (CFA) within the Structured Equation Modeling (SEM) model using AMOS 24. We chose CFA over Ordinary Least Squares (OLS) because the application of OLS is limited by compliance to simplifying assumptions. In contrast, SEM-CFA is a more robust method that also addresses the issue of multicollinearity, a common problem in survey data. Findings: The empirical results suggest that the Service Encounter and Convenience have coefficients of 0.049 [P=0.265] and 0.02 [P=0.682] only, suggesting a statistically insignificant influence of the two factors on the mobile phone buying behavior. Similarly, Avoidance of Core Service Failure and Response only has a coefficient -0.05 [P=0.401], suggesting a feeble and statistically insignificant negative effect on the mobile phone buying behavior in Pakistan. However, Price and Attractiveness have been found to have coefficients of 0.436 [P=0.00] and 0.155 [P=0.00], indicating that these two key factors are having a positive and significant influence on the mobile phone buying behavior in young adults in Pakistan. Contribution: The finding reveals mobile shopping behavior of young Pakistani adults might not be influenced by either Service Encounter or Convenience. Instead, the Price and Attractiveness of the mobile phone seem to affect the adults towards buying the mobile phone. Recommendations: The price of the mobile phones needs to follow the target market, and the product category should also be identified according to the characteristics of the target market. In addition, the attractiveness of the mobile phone needs to be maintained even if the prices are lower, as this should positively influence the buyers. Further research is suggested to include cultural and social factors in this context. |
| Keywords: | Commerce, mobile commerce, shopping behaviors, service encounter. |
| JEL: | M3 M31 |
| Date: | 2021–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:109251&r= |
| By: | Lin, Trisha T. C. |
| Abstract: | This big data research uses CORPRO, sentiment analysis and inter-media agenda setting approach to investigate cross-platform representation of socialbots and disinformation during 2020 Taiwanese presidential election. The results show key terms associated with socialbots emphasize Internet armies, election candidates, Facebook and China/Taiwan relations. Sentiment analysis of socialbot-related cross-platform contents tend to be negative, regardless of media types. Forums contents encompassed more diverse topics and negativity than news media and Facebook. Polarized sentiments and political slants were found in three media types. The time-series analysis of the salient socialbot event regarding Facebook's deleting illegal account showed inter-media agenda-setting from news to Facebook and forms. Even though news media set the initial agenda, journalists and social media users alter story angels and extend narratives to fit political inclinations and reflect polarized views. |
| Keywords: | Socialbots,disinformation,Taiwanese Presidential Election,big data,sentiment analysis,inter media agenda setting |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238037&r= |
| By: | Itzhak Ben-David; Mark J. Johnson; René M. Stulz |
| Abstract: | With the onset of the COVID-19 crisis in March 2020, small business lending through fintech lenders collapsed. We explore the reasons for the market shutdown using detailed data about loan applications, offers, and take-up from a major small business fintech credit platform. We document that while the number of loan applications increased sharply early in March 2020, the supply of credit collapsed as online lenders dropped from the platform and the likelihood of applicants receiving loan offers fell precipitously. Our analysis shows that the drying up of the loan supply is most consistent with fintech lenders becoming financially constrained and losing their ability to fund new loans. |
| JEL: | G11 G21 G33 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29205&r= |
| By: | Hu, Bo; Liu, Yu-li; Yan, Wenjia |
| Abstract: | Drawing on the perspectives of perceived value and trust, this study examines the factors affecting Chinese users' intention to use facial recognition payment (FRP) service. Data collected from 1200 Chinese mobile payment users is analyzed by using structural equation modelling. Results show that convenience positively influences perceived value; privacy risk and financial risk negatively influence perceived value. Only privacy risk and financial risk can significantly affect trust in FRP. Novelty has no significant effect on perceived value and trust. It is also found that perceived value positively influences trust, and both perceived value and trust are factors positively affecting intention to use FRP. Information sensitivity moderates the relationship between perceived value and intention to use FRP. Theoretical implications and practical implications are discussed. |
| Keywords: | facial recognition payment,perceived value,trust,intention to use |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238028&r= |
| By: | Sangyup Choi (Yonsei University); Junhyeok Shin (Yonsei University) |
| Abstract: | During the recent COVID-19 pandemic, many commonalities shared by Bitcoin and gold raise the question of whether Bitcoin can hedge inflation or provide a safe haven as gold often does. By estimating a Vector Autoregression (VAR) model, we provide systematic evidence on the relationship among inflation, uncertainty, and Bitcoin and gold prices. Bitcoin appreciates against inflation (or inflation expectation) shocks, confirming its inflation-hedging property claimed by investors. However, unlike gold, Bitcoin prices decline in response to financial uncertainty shocks, rejecting the safe-haven quality. Interestingly, Bitcoin prices do not decrease after policy uncertainty shocks, partly consistent with the notion of Bitcoin’s independence from government authorities. We also find an interesting asymmetry in the drivers of Bitcoin price dynamics between the bullish and bearish markets. The main findings hold with or without the COVID-19 pandemic episode. |
| Keywords: | Cryptocurrencies; Bitcoin; inflation-hedging; safe-haven; gold; COVID-19 |
| JEL: | E41 E44 F31 G10 |
| Date: | 2021–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:cth:wpaper:gru_2021_030&r= |
| By: | Layton, Roslyn; Potgieter, Petrus |
| Abstract: | The paper described the challenge of provision of rural broadband provision by examining the economics of 4 fiber to the home networks in different parts of the US. It shows how streaming video entertainment is the largest and growing category of traffic and which puts unique demands on the network. The paper described the history, policy, and economics of traditional end user pricing models flat, and uniform (over service area) based on speed tiers, and their shortcomings to support continued investment. It introduced the notion of the Big Streamers, the five largest video streaming providers and their content distribution practices. The document also reviewed the components of a rural broadband network. It reviewed traffic data from the networks, calculated revenue and cost, defined amounts of overage, and projected future shortfalls. This analysis demonstrates that rural networks are heavily burdened by huge volumes of streaming content which is turned into revenue not by the broadband providers but by the Big Streamers. The policy solutions section introduced the three types of response and their implications. The current model of flat and uniform (over service area) pricing (even with subsidy) is likely to become unsustainable for rural broadband provision. The paper contributes to the ongoing policy discussion of rural broadband and closing the digital divide. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238035&r= |
| By: | Ahmed, Shamira |
| Abstract: | The use of artificial intelligence (AI) based systems complements the time-sensitive and data intensive nature of many activities in the financial services industry (FSI)-Specifically, in FinTech Ecosystems (FEs) that have disrupted many financial services landscapes in sub-Saharan Africa (SSA). However, FEs have distinct interrelated supply-side and demand-side dynamics that perpetuate gender disparity. As evidenced in many wealthier economies with more AI maturity, technology is not neutral, AI in particular is inherently biased and magnifies pervasive gender and racial discrimination that exist in the ecosystems where it is deployed. This raises questions regarding the manner in which AI can exacerbate or alleviate current dynamics in inequitable and unfair ecosystems. With the aforementioned in mind, this paper adopts a gender lens to examine the potential impact of using AI based systems in the FEs of four SSA countries-South Africa, Kenya, Nigeria, and Ghana. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238002&r= |
| By: | Tong, Antonia |
| Abstract: | The 21st century sees a sharp increase in political, military, and economic competition. A country's competitive position in the world is measured by the strength of its economy. Since 2009 bitcoin was created, the decentralized economy became the trending research topic on google in 2021. Many developing countries try their best to find a way to decentralize their high-cost operations and optimize possible resources. Decentralization, as opposed to centralization, is the procedure through which a firm's operations, especially those concerning planning and management, are spread or outsourced away from the centralized, dominant place, group, and bureaucracy. It is definitive as a component of the decentralized economy since it is a set of commodities that enable the community to have sovereignty over an individual’s wealth without requiring third parties, such as a bank. Regional essential services are chosen by publicly elected officials in a decentralized economy system, whereas policy decisions are decided by a parliament comprised of elected members from each region in a centralized economic system. Two types of parliamentary conduct are explored. This thesis offers a foundation for choice, comparative, and a category of schemes for managerial decision is established, and decentralized (in the classic sense), centralized, and unconstrained economic subclasses are studied in both the United States and China. It also identified and discussed the channels through which a decentralized economic system can contribute to the economic growth. In a basic illustrative structure, parameters for rating the schemes are developed and used. It is discovered that a universal predilection for one of the subcategories cannot be justified without significantly reducing the model's possibilities in the United States and China. |
| Keywords: | Decentralized, economy, cryptocurrency, China, Chinese, U.S.A, Fintech, GDP, substantial, Den Xiaoping, Ethereum, Bitcoin, capitalism, socialism, politic, legislative behavior; economic policies; growing competition; dominant place; bureaucracy; stability |
| JEL: | A10 G0 G00 |
| Date: | 2021–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:109609&r= |
| By: | Berdibayev, Yergali; Kwon, Youngsun |
| Abstract: | As of the end of May 2021, more than 170 million people worldwide were infected with COVID-19, with the total death toll exceeding 3.7 million. The COVID-19 pandemic and the demand for physical distancing and social isolation have highlighted digital financial services (DFS) as a typical solution for getting the basic services we need in our daily lives. Thus, to understand the behavior of people using digital financial services during a pandemic, in particular in developing countries, we used the UTAUT model, expanding it with two constructions: fear of COVID-19 as a moderator and social isolation as a direct determinant for behaviour intention. A survey method is used, in which primary data is collected through survey platforms and social networks from people from developing countries, more than 400 participants aged 18 and over. This study uses structural equation modeling (SEM) to test our constructs and hypotheses, analyze relationships, and determine the overall fit of the model. The study used factor analysis (EFA, CFA) and covariance-based SEM. As a result, we found that all UTAUT constructs and social isolation positively influence behavioral intent and actual use of DFS during a pandemic. Testing the moderating role of COVID fear for other constructs plays a positive role, with the exception of the relationship between expected performance and behavior intensity and the relationship between behavioral intent and actual use. |
| Keywords: | Behaviour study,UTAUT model,structural equation modeling (SEM),digital financial service (DFS),social isolation,COVID-19 pandemic |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238010&r= |
| By: | Wang, Soyoung |
| Abstract: | The development of artificial intelligence (AI) technology has made it easy for users to generate hyper-realistic fake media content, and its most representative by-product is called deepfake. However, considerable attention has been paid to the adverse effects of deepfakes as they are tightly connected to the production of fake news, financial frauds, or fake pornographies. The misuse of deepfakes led to a series of deepfake prevention studies, but most were post-detection methods. This study thus investigated deepfake malfunction-inducing technology that may forestall the generation of deepfake with PGD attack. In the next part of the study, overall preferences and intention to use were measured as people's responses to this technology. An online survey especially targeting those exposed to various media like social media influencers (SMIs), was conducted. The deepfakes started to malfunction after adding 0.009 levels of an adversarial noise as a preventive mechanism. From a technical viewpoint, higher noise was a more effective way to prevent deepfake synthesis, but from the user's viewpoint, noise as high as 0.03 was found to be appropriate. Individuals' intention to use was tested with Bulgurcu's ISP compliance model. It was found that SMIs' predictive evaluations on the cost and benefit of this technology influence their attitude, and consequently, their intention to use it. This study shows the value of collaborative studies of AI-based privacy security domain and media industry domain. It also expands the scope of the framework with thorough hypothetical testing in the deepfake context. |
| Keywords: | Deepfake,Adversarial noise,Image quality,Intention to use |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238060&r= |
| By: | Nam, Jinyoung; Jung, Yoonhyuk |
| Abstract: | The rising popularity of webtoons, a popular type of digital content, led to emergence of an interesting phenomenon known as transcreation. Transcreation indicates fans' twofold activity of translating and recreating webtoons into a new language, while maintaining originality of the content. Although transcreators are playing a significant role in facilitating the spread of webtoons in the global market, the role of such transcreators has received scant attention. By employing the means-end chain approach through laddering interviews, the study explicates fans' goal structure in transcreation of webtoons. This empirical study provides insights into fans' involvement in the digital media industry. |
| Keywords: | Webtoon industry,Transcreation,Fandom,Fan participation,Digital media,Goal hierarchy,Means-end chain |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238041&r= |
| By: | Schrape, Jan-Felix |
| Abstract: | The platformization of communication architectures is accompanied by a diversification of individual media use and an erosion of clear structural boundaries between different streams of public exchange. Nevertheless, it is by now evident that the digital transformation does not lead to a general loss of relevance of journalistic services or mass-received content per se and that selection thresholds remain in public communication despite increased connectivity. Against this backdrop, this paper argues that it is still instructive to describe the negotiation of public visibility as a multi-level process, which is now essentially shaped by the peculiarities of digital platforms: First, it examines the increasing platform orientation in media diffusion. Second, it discusses the associated diversification of individual media repertoires and the pluralization of public exchange. Then, the paper elaborates on three basic levels of public communication characterized by a heterogenous interplay of social and technical structuring services. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:stusoi:202102&r= |
| By: | Salisu, Afees; Ogbonna, Ahamuefula; Oloko, Tirimisiyu |
| Abstract: | This study examines the effect of a pandemic-induced uncertainty on cryptocurrencies (specifically, Bitcoin, Ethereum and Ripple). It employs a predictive model by Westerlund and Narayan (2012, 2015) to examine the predictability of a pandemic-induced uncertainty as a predictor, as well as the forecast performance of our predictive model for cryptocurrency returns. We examine the role of asymmetry in uncertainty and the sensitivity of our results to alternative measures of uncertainty due to pandemics, using the recently developed Global Fear Index (GFI) by Salisu and Akanni (2020). Our results indicate that cryptocurrencies could act as hedge against uncertainty due to pandemics, albeit with reduced hedging effectiveness in the COVID-19 period. Accounting for asymmetry is found to improve the predictability and forecast performance of the model, which indicates that failure to account for asymmetry in modeling the effect of a pandemic-induced uncertainty on cryptocurrency may lead to incorrect conclusion. The results seem to be sensitive to the choice of measure of pandemic-induced uncertainty. |
| Keywords: | COVID-19; Cryptocurrency; Distributed Lag Model; Pandemic; Uncertainty |
| JEL: | C5 G1 |
| Date: | 2020–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:109597&r= |
| By: | Aslan, Fatma; Haouel, Chourouk; Nemeslaki, Andras; Somogyi, Robert |
| Abstract: | We investigate the effect of direct network externalities on the long- run dynamics of two-sided platforms. Two-sided platforms have been widespread in the economy, acting as intermediaries connecting two dis- tinct groups of agents. A defining characteristic of the two-sidedness is the existence of indirect network externalities between the two sides. How- ever, direct externalities can also be important in one or both sides of the market. For instance, direct externalities include review systems where buyers on the platform benefit from other buyers' ratings and comments. We find that considering direct externalities changes the dynamics quali- tatively. For example, instead of saddle path dynamics, they can lead to unstable node dynamics and the collapse of a platform. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238006&r= |
| By: | Soo Jin Kim; Pallavi Pal |
| Abstract: | This paper analyzes the generalized quality differentiation model in multi-sided markets with positive externalities, which leads to new insights into the optimal pricing structure of the firm. We find that quality differentiation for users on one side affects not only the side involving differentiation but also the other side due to cross-side network externalities, thereby affecting the pricing structure of multi-sided firms. In addition, quality differentiation affects the strategic relationships among all the choice variables for the platform, enabling the platform to strategically use quality differentiation to raise its profits. |
| Keywords: | multi-sided market, quality differentiation, platform business strategies |
| JEL: | D43 L11 L42 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9267&r= |
| By: | Martin Schnauss; Emanuelle Giannotta |
| Abstract: | The real estate market is undergoing a “major evolution and transformation” (Karamitsos et al. 2018, p.177). In only a few studies, however, the application of a complexity theoretical perspective has been investigated. Here we view the real estate market as a complex adaptive system. Complexity theory provides a framework that has the potential to bridge the gap between traditional “pure” science, which makes clear assumptions that are not necessarily based on reality, and the “applied” sciences, which focus on practical value (Thurner at al 2018). The blockchain reflects the core attributes of complex adaptive systems and thus appears to be a “natural fit” for complex adaptive systems applications (Zavolokina et al. 2018). Furthermore, given its size, the real estate market is relevant to everyday human life. These are all indicators that the interconnections among of complexity theory, blockchain, and the real estate market is worth investigating. Blockchain technology is expected, for example, to create opportunities to outsource services currently provided by incumbent middlemen in the market thereby increasing market efficiency. |
| Keywords: | blockchain; Complex adaptive systems; New Technology; Real Estate Market |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_121&r= |
| By: | Castro-Iragorri, C; Ramírez, J; Vélez, S |
| Abstract: | We provide an overview of decentralized protocols like Compound and Aave that offer collateralized loans for cryptoasset investors. Compound and Aave are two of the most important application in the decentralized finance (DeFi) ecosystem. Using publicly available information on rates, supply and borrow activity, and accounts we analyze different elements of the protocols. In particular, we estimate ex-post margins that give a comprehensive account of the cost of financial intermediation. We find that ex-post margins considering all markets are 1% and lower for stablecoin markets. In addition, we estimate quarterly indicators regarding solvency, asset quality, earnings and market risk similar to the ones used in traditional banking. This provides a first look at the use of these metrics and a comparison between the similarities and challenges to our understanding of financial intermediation in these protocols based on tools used for traditional banking. |
| Keywords: | Decentralized finance, Compound, Aave, collateralize loans, intermediation margins, camels |
| JEL: | C63 C80 E51 G21 G23 G51 O16 O33 |
| Date: | 2021–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:col:000092:019420&r= |
| By: | Natalia A. Van Heerden; Juan B. Cabral; Nadia Luczywo |
| Abstract: | In recent years, cryptocurrencies have gone from an obscure niche to a prominent place, with investment in these assets becoming increasingly popular. However, cryptocurrencies carry a high risk due to their high volatility. In this paper, criteria based on historical cryptocurrency data are defined in order to characterize returns and risks in different ways, in short time windows (7 and 15 days); then, the importance of criteria is analyzed by various methods and their impact is evaluated. Finally, the future plan is projected to use the knowledge obtained for the selection of investment portfolios by applying multi-criteria methods. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2109.00130&r= |
| By: | Céline Baud; Cédric Durand (UNIGE - Université de Genève, Faculté des sciences de la société, Département d'histoire, économie et société, CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This contribution documents the contrasting fate of three key actors of the retail industry since the mid-nineties: Carrefour, Wal-Mart and Amazon. Stylized facts about their respective financial trajectories and a description of their engagement with digitalization allow to identify their distinct dynamics. Through a combination of accounting, business and economic analyses, this paper clarifies the underlying logics of profit making in the context of retail digitalization and provides new insights concerning the role of fixed costs leveraging in the digital age. |
| Keywords: | Retailing,digitalization,financialization,profits,accounting JEL codes: L81,L22,M41,D22,G32 |
| Date: | 2021–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-03332318&r= |
| By: | Alleman, James |
| Abstract: | Robert Bork's Antitrust Paradox (1978) has been justification for lack of antitrust behavior for over four decades. His test essentially asks if consumers are harmed by the pricing practices of the firm in the market in which they purchase the good or service. Even if these firms are monopoly or oligopolies in their fields with huge economic rents, if they pass this test, no action is taken against them. "Bigness is not bad." This narrow view, inter alia, ignores two- and multisided markets (MSM) where the appearance of "no harm" is addressed to only one side of the market. The correct view is to examine all the markets impacting potential harm to consumers. It illustrates the harm which is "free" to the users, but advertisers pay dearly for the ability to micro-focus on potential consumers of their products. Facebook and Google are used as examples. This advertising cost is added into the sales price of the product, resulting in consumers being harmed by the embedded advertising costs in the products or services purchased. We argue here, using Bork's own criterion - except to expand it to the other side of the market and eliminating producer's surplus - that much needed antitrust action has been ignored by this narrow criterion. This analysis indicates that antitrust action is long overdue after considering two-sided markets. In addition, we argue that his "consumer welfare" criterion is misleading and liable to deceive, thus the hoax. The Bork critique is a hoax in two ways: Bork's analysis does not include the other side of the market. The cost of advertising has to be included in the price of the products being sold in order for the firm to remain in business. So, clearly, the price of goods and services is increased by the cost of advertising, thus reducing consumers' surplus. The second flaw is Bork's definition of "consumer welfare" - it includes the economic rents of the firm - all at a cost to consumers. Enhancing the wealth (profits) of corporations in the name of efficiency was not the purpose of the antitrust laws. We address the Bork Paradox on its own terms by examining the second side of the market which harms consumers indirectly by increasing the price of the products and services they purchase. Using the corrected Bork metric - both sides of the market and no producer's surplus - the estimated loss of consumers' welfare in $60.4 and $43.7 billion respectively from Google and Facebook, respectively. |
| Keywords: | Advertising,Antitrust,Bork,competition,consumers' surplus,digital markets,Information and Communications Technology (ICT),internet,platform economics,monopoly,regulation,two-sided/multisided markets |
| JEL: | D42 D43 K21 L12 L13 L22 L51 L96 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238003&r= |
| By: | Prado, Tiago S. |
| Abstract: | This paper investigates short-term effects of big tech start-up acquisitions on innovation empirically. Innovation research has found a strong positive, causal relationship between VC investment and innovation. Using this insight, we can explore the repercussions of big tech start-up acquisitions on innovation by examining their effects on venture capital (VC) activity. We analyze a very large set of observations of more than 32,000 venture capital deals in more than 170 different segments of the tech industry and almost 400 tech start-up acquisitions made worldwide between 2010 and 2020 by Google, Facebook, Amazon, Apple, and Microsoft. Our results suggest a positive, causal impact of big tech start-up acquisitions on venture capital activity, challenging claims about the creation of "kill zones" for start-ups after acquisitions are made by the big techs. For example, after controlling for other factors that may impact VC activity, like initial public offerings (IPOs) and other mergers and acquisitions (M&As), we found an average increase of 30.7% in the total amount of VC funding towards U.S. based start-ups of the same industry segment in the four quarters following a big tech start-up acquisition. For deals targeting European start-ups, we found an increase of 32.1% in the VC funding in in the first quarter after a big tech start-up acquisition. Finally, our findings show that such positive effects, when existent, persist for a few months only, and so do not seem to have lasting impacts on the innovation incentives in the the start-up ecossystem. Our empirical findings should inform current competition policy discussions on imposing restrictions to acquistions of start-ups by the big techs. |
| Keywords: | kill zone,platform,big tech,venture capital,innovation |
| JEL: | G11 G24 G32 G34 L41 L44 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238049&r= |
| By: | Carina Kaiser; Julia Freybote |
| Abstract: | The emergence of e-commerce over the last two decades has substantially disrupted the business of retailers operating physical stores. As a result, the question arises as to how e commerce in turn affects pricing of retail real estate assets and thus investors should be concerned with e-commerce. Using return series data of shopping centers from the NCREIF property index for the period of 2000 Q1 to 2018 Q4, we find that e commerce sales can predict changes in retail real estate market returns. In particular, an increase in the share of e commerce sales to total sales results in lower capital and total returns for retail real estate. In contrast, no impact on income returns was found. Alongside revealing that e commerce has informative value for investors, this study contributes to the broader literature on asset pricing in commercial real estate markets while bridges this gap in the retail real estate literature. |
| Keywords: | Asset Pricing; E-commerce; Institutional Investors; Retail real estate |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_150&r= |
| By: | Shi, Peilin; Winter, Jenifer Sunrise; Zhang, Bin |
| Abstract: | In accordance with UNCTAD data, out of 194 countries in the world, 132 countries have enacted laws to protect data and privacy. Among them, most of the laws were issued at the beginning of the 21st century. With the continuous development of digital technology, especially the widespread application of big data technology, existing legislation has been unable to deal with the privacy protection risks brought by new technologies. In recent years, Japan, South Korea, and other countries have begun to revise or expand the definition of personal information protection boundaries and content in laws and regulations to protect the personal information of their citizens in response to the development of new technologies. In early 2020, the COVID-19 epidemic suddenly broke out and quickly swept the world, posing unprecedented challenges to healthcare systems, lifestyles, economic development and social stability in countries around the world. Digital technologies and data applications have played an important role in COVID-19 detection and control, but their characteristics have also raised concerns about the security of personal data and privacy. How the law will be adjusted (or has been adjusted) to deal with new technology will be a challenge.This paper selects the countries (EU, the United States, Japan, South Korea, China) that have modified laws and regulations related to data security and privacy protection in recent years as research objects, analyzes their existing privacy protection laws and regulations governance framework, and then analyzes the privacy risks faced to the new technology. In particular, privacy regulations and compliance guidelines for the application of facial recognition, location tracking and distance learning technology during the COVID-19 epidemic. Then, the governance experience in dealing with the relationship between digital technology progress, personal information protection and public health in the special period was summarized. Finally, it summarizes the future development direction of privacy protection governance from the legal level. |
| Keywords: | Privacy Protection,New Technologies,Governance,COVID-19 epidemic |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238053&r= |
| By: | Andr\'es Garc\'ia-Medina; Toan Luu Duc Huynh3 |
| Abstract: | Bitcoin has attracted attention from different market participants due to unpredictable price patterns. Sometimes, the price has exhibited big jumps. Bitcoin prices have also had extreme, unexpected crashes. We test the predictive power of a wide range of determinants on bitcoins' price direction under the continuous transfer entropy approach as a feature selection criterion. Accordingly, the statistically significant assets in the sense of permutation test on the nearest neighbour estimation of local transfer entropy are used as features or explanatory variables in a deep learning classification model to predict the price direction of bitcoin. The proposed variable selection methodology excludes the NASDAQ index and Tesla as drivers. Under different scenarios and metrics, the best results are obtained using the significant drivers during the pandemic as validation. In the test, the accuracy increased in the post-pandemic scenario of July 2020 to January 2021 without drivers. In other words, our results indicate that in times of high volatility, Bitcoin seems to autoregulate and does not need additional drivers to improve the accuracy of the price direction. |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2109.01214&r= |
| By: | Song, Chuling; Liu, Yu-li |
| Abstract: | Recent empirical research has indicated that the perceived risk in e-commerce affects the consumer's purchase intention. Based on the Stimulus-Organism-Response (SOR) model, this study explores the effects of environmental stimuli on the consumer's perceived risk and purchase intention within a live-streaming shopping context. Through a sample of 341 valid users, we found that 1) perceived risk has a negative effect on the consumer's purchase intention; 2) the streamer's credibility partially mediates the relationship between perceived risk and purchase intention; and 3) the interactivity is positively associated with purchase intention. These results provide possible insights into how environmental stimuli in the context of live-streaming shopping affect the consumer's perceived risk and purchase intention. |
| Keywords: | live streaming,perceived risk,purchase intention,credibility,media richness |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238054&r= |
| By: | Gyódi, Kristóf |
| Abstract: | Purpose: The purpose of this paper is to examine the impact of the COVID-19 pandemic on the traditional hotel industry and Airbnb in nine major European cities. The author examines differences between the two business models and analyses various strategies of Airbnb hosts to cope with the crisis. Design/methodology/approach: A detailed empirical analysis is presented based on data from STR and Inside Airbnb for the period January 2018–September 2020. To assess the impact of the pandemic on the hotel industry, year-to-year changes in various performance metrics are presented. The author also investigates the impact of the pandemic on Airbnb prices with panel data regression analysis. Using text-mining methods, signs for new use-cases are explored, including renting flats for home-office or quarantine. Findings: The results support that Airbnb supply is more flexible. While hotel supply quickly returned to a level close to 2019, the average number of Airbnb listings was lower by more than 15%. Furthermore, the price analysis showed that Airbnb rates decreased more moderately than hotel prices. These findings suggest that a significant share of hosts pivoted from short-term accommodation provision and used their property differently, e.g. rented on a long-term basis. The analysis of listing characteristics revealed that the role of longer stays increased; however, the results do not support a shift towards advertising listings for home-office or quarantine purposes. Originality/value: This paper presents the impact of the pandemic on the hospitality sector in a wide sample of European cities, explores the adjustment of hotels and Airbnb and provides new evidence on the differences between the business models. |
| Keywords: | Tourism, Airbnb, Text-mining, COVID |
| JEL: | L8 |
| Date: | 2021–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:109333&r= |
| By: | Borchert, Lea; de Haas, Ralph; Kirschenmann, Karolin; Schultz, Alison |
| Abstract: | Correspondent banks allow local banks in emerging markets to access the international payments system. This helps local banks to make cross-border payments, clear currencies, and provide trade finance. The recent retrenchment of global correspondent banks following the increased costs of financial crime compliance may therefore disrupt international trade. This policy brief shows that the withdrawal of correspondent banks from Emerging Europe has negatively and substantially affected the exports of this region. Exploiting an unexpected change in the U.S. regulator's enforcement of financial crime legislation we compare industry-level bilateral trade flows of countries experiencing a high withdrawal with those that maintain their correspondent bank relationships. We find that the decreased availability of international payment and trade finance services has considerable negative effects on exports. This negative effect is stronger for trading partners that are geographically more distant. A survey of 93 local banks confirms that banks face growing difficulties in performing cross-border payments and in clearing currencies. In particular, access to the U.S. financial system is severely inhibited and local banks can only imperfectly substitute lost correspondent bank relationships with new partners from Russia and Austria. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:62021&r= |
| By: | Patrick T. Harker |
| Abstract: | In welcome remarks at the virtual New Perspectives on Consumer Behavior in Credit and Payments Markets Conference, Philadelphia Fed President Patrick Harker highlighted groundbreaking research from the Consumer Finance Institute. The 11th biennial conference allowed researchers to share new research on homeownership, consumer bankruptcy, pandemic housing relief, and consumer protection and regulation, with a special focus on racial inequities. |
| Date: | 2021–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpsp:93033&r= |
| By: | Zhenyu Su; Paloma Taltavull de La Paz; Raúl Pérez; Francisco Juárez Tárraga |
| Abstract: | The paper builds the cycles of transactions and prices in the short-term rental market since almost the beginning of that this rental activity becomes relevant for cities during the second decade of the XXI century. The paper shows the data elaborated building a micro database with Airbnb information for 46 cities around the world. The analysis reaches the cycles by extracting millions of observations and shows the periods where the rental was more relevant for the cities. A model relating short rental visits with macroaggregates allows for learning the main drivers to explain the explosion of short-term visits using housing rental sharing as the means for hospitality. |
| Keywords: | Airbnb; Comovements; rental prices; Short-term rental market |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_216&r= |
| By: | Apanasevic, Tatjana; Rudmark, Daniel |
| Abstract: | In the last decade, private companies have successfully used crowdsourcing to revolutionise mobility, while public transport companies are still mostly failing to utilise the benefits of crowdsourcing. The application of crowdsourcing in public transport is a new area of academic research, and research on crowdsourcing en route in real-time is missing. This research aims to address this gap, explore opportunities and challenges of this type of crowdsourcing, and conceptualise this phenomenon. The research is based on empirical data collected in five Northern European countries. Our research findings help identify areas where crowdsourcing en route can add value to public transport: new forms of communication, opportunities to communicate with third parties, and improved transit planning and optimisation. Identified challenges are related to behavioural change for users, a need to develop infrastructure to enable crowdsourcing en route, and financial rationalities. |
| Keywords: | Future of transportation,public transportation,emerging technologies,automated vehicles,crowdsourcing |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itsb21:238005&r= |
| By: | Jun Chen; Michael Ewens |
| Abstract: | Although an extensive literature shows that startups are financially constrained and that constraints vary by geography, the source of these constraints is still relatively unknown. We explore intermediary financing constraints, a channel studied in the banking literature, but only indirectly addressed in the venture capital (VC) literature. Our empirical setting is the VC fundraising and startup financing environment around the passage of the Volcker Rule, which restricted banks’ ability to invest in venture capital funds as limited partners (LPs). The rule change disproportionately impacted regions of the U.S. historically lacking in VC financing. We find that a one standard deviation increase in VCs’ exposure to the loss of banks as LPs led to an 18% decline in fund size and about a 10% decrease in the likelihood of raising a follow-on fund. Startups were not completely cushioned from the additional constraints on their VCs: capital raised fell and pre-money valuations declined. Overall, VC financing constraints manifest as fewer, smaller funds that change investment strategy and experience increases in bargaining power. Last, we show that the rule change increased the likelihood startups move out of impacted states, thus exacerbating the geographic disparity in high-growth entrepreneurship. |
| JEL: | G21 G23 G24 K22 L26 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29211&r= |
| By: | Olayiwola Oladiran; Ajayi Saheed; Sunmoni Adesola |
| Abstract: | This paper analyses the relationship between the potential demand for purpose-built student accommodation (PBSA) properties and their online displayed attributes. Using data from 12 major UK cities, we analyse the effect of the online displayed property information on the popularity score of a PBSA. The results suggest that PBSAs’ tangible and non-tangible attributes are important to students in their online accommodation search, although, these attributes vary in impact. The study also reveals that failure to display key information of a PBSA may make the property less attractive. These insights are valuable in developing student accommodation investment, development and management strategies. |
| Keywords: | online search; Operational real estate; proptech; student accommodation |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_196&r= |
| By: | Eoin McLaughlin (University College Cork); Rowena Pecchenino (Maynooth University) |
| Abstract: | Pawnbroking, one of the oldest and most accessible forms of credit, was a common feature of life in pre-famine and famine Ireland. This paper studies the role of pawnbroking in the Irish financial system during this important period, applying insights from modern studies on fringe banking to analyse pawnbroking in Ireland. In the period under study, a formal tiered financial system existed; regulated joint stock banks offered services to industry and the better off, while fringe banks provided financial services largely, but not exclusively, to unbanked groups. The main findings are that pawnbrokers provided a steady source of credit throughout the island of Ireland and that this credit stream was more durable than that provided by alternative financial service providers in the fringe banking market, especially during the famine. Our findings suggest a nuanced interpretation is needed as we find strong interrelationships between the various financial service providers. |
| Keywords: | Fringe banking, financialisation, pawnbroking, Ireland |
| JEL: | G21 G51 N23 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:hes:wpaper:0215&r= |
| By: | Csenkey, Kristen; Bindel, Nina |
| Abstract: | Threats against security in the Internet often have a wide-range and can have serious impacts within society. Large quantum computers will be able to break the cryptographic algorithms used to ensure security today, which is known as the quantum threat. Quantum threats are multi-faceted and very complex cybersecurity issues. We use assemblage theory to explore the complexities associated with these threats, including how they are understood within policy and strategy. It is in this way that we explore how the governance of the quantum threat is made visible. Generally, the private and academic sector have been a primary driver in this field, but other actors(especially states) have begun to grapple with the threat and have begun to understand the relation to defence challenges, and pathways to cooperation in order to prepare against the threat. This may pose challenges for traditional avenues of defence cooperation as states attempt to understand and manage the associated technologies and perceived threats. We examine how traditionally cooperating allies attempt to govern the quantum threat by focusing on Australia, Canada, the European Union (EU), New Zealand, the United Kingdom (UK), and the United States (US). We explore the linkages within post-quantum cryptographic assemblages and identify several governmental interventions as attempts to understand and manage the threat and associated technologies. In examining over 40 policy and strategy-related documents between traditionally defence cooperating allies, we identify six main linkages: Infrastructure, Standardization, Education, Partnerships, Economy, and Defence. These linkages highlight the governmental interventions to govern through standardization and regulation as a way to define to contours of the quantum threat. |
| Date: | 2021–08–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:3ws6p&r= |
| By: | Radoslaw Trojanek; Micha Guszak; Michal Hebdzynski; Justyna Tanas |
| Abstract: | In this study, we analyzed the impact of COVID-19 on house rents and prices in Warsaw, the capital of Poland. Hedonic indexes indicated a slight increase in prices (ca. 1.2%) and a substantial drop in long-term rents (ca. -7.7%) between March 2020 and December 2020. The largest decline in rents occurred in centrally located neighborhoods, influenced mainly by the inflow of new housing supply from the short-term rental market (the Airbnb Warsaw market shrunk by almost 30% in December 2020 y/y). Using hedonic methods, we highlighted the influence of the shrinking Airbnb market on the drop in long-term rents. The study indicates the elasticity of rents with respect to Airbnb supply, with a 1% change in Airbnb listings leading to a 0.031% change in rents. |
| Keywords: | Airbnb; COVID-19; housing market |
| JEL: | R3 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2021_187&r= |