|
on Payment Systems and Financial Technology |
|
Issue of 2022‒08‒08
twenty-six papers chosen by |
| By: | Khalid Ahmed Al-Ansari (HBKU - Hamad Bin Khalifa University); Ahmet Faruk Aysan (HBKU - Hamad Bin Khalifa University) |
| Abstract: | This paper introduces the need for blockchain technology integration for Islamic financial institutions. The paper presents three main applications of blockchain technology. It explains how such technology can be used in the banking and financial sectors by providing examples for each application. Given its relevancy, the paper expands on Central Bank Digital Currencies (CBDCs) as one of the blockchain applications. The paper then discusses salient points on how the banking sector would be affected by what is described as the future of money. Subsequently, an analysis of the use of blockchain in financial services and, in particular, the use for Islamic financial services is provided by examining examples of past successful implementations. The paper then introduces the Internet of Things (IoT) and illustrates the possible technology implementation in financial institutions. The inherent security weakness of IoT is summarized with the potential elimination of that weakness if combined with blockchain (BIoT). The paper concludes by providing a handful of suggestions and recommendations on the urgency of considering CBDCs for future daily operations, integrating Distributed Ledger technology, and using BIoT to safeguard the financial and clients' transaction records. |
| Keywords: | Blockchain,CBDCs,Internet of Things,IoT |
| Date: | 2022–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03688607&r= |
| By: | Bogdan Radu (Dimitrie Cantemir Christian University, Bucharest, Romania) |
| Abstract: | This article aims at presenting the strengths and weaknesses of the Romanian legislation towards cryptocurrencies. While starting from legal acceptances of cryptocurrencies from the US and EU, the article moves on to an analysis of Romanian legislation that treats cryptocurrency fiscally and criminally. Concluding, legislators around the world are falling behind regulation the mysterious new digital age of finance and cryptography-and-distributed-ledger-based assets. Also, one can remark that non-fungible tokens and cryptocurrency are the basis of a more complex and prominent legal construct that is smart contract. |
| Keywords: | Cryptocurrency, fintech, non-fungible tokens, digital ledger, blockchain |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0157&r= |
| By: | Asongu, Simplice A; Odhiambo, Nicholas M |
| Abstract: | This study focuses on linkages between bank accounts and supply-side mobile money drivers for mobile money innovations. It seeks to understand how bank accounts can be complemented with mobile subscription and mobile connectivity dynamics (i.e., mobile connectivity coverage and mobile connectivity performance) for mobile money innovations. The empirical evidence is based on quadratic Tobit regressions. First, there are positive net relationships from the roles of mobile subscriptions and mobile connectivity coverage in modulating bank accounts for mobile money innovations. Second, mobile connectivity performance does not significantly modulate bank accounts for mobile money innovations. Third, given the negative marginal relationships associated with the positive net relationships, thresholds for complementary policies in mobile money supply factors that are worthwhile for bank accounts to stimulate mobile money innovations are provided. The thresholds are: (i) mobile subscription rates of 87.50%, 80.50%, and 98.50% of the adult population for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money, and (ii) mobile connectivity coverages of 64.00%, 69.33%, and 78.00% for respectively, the mobile money accounts, the mobile used to send money, and the mobile used to receive money. |
| Keywords: | Mobile money; technology diffusion; financial inclusion; inclusive innovation |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:29005&r= |
| By: | Jean-Claude Kouladoum (University of Moundou, Chad); Muhamadu Awal Kindzeka Wirajing (University of Dschang, Cameroon); Tii N. Nchofoung (University of Dschang, Cameroon) |
| Abstract: | The study investigates the digital technology-financial inclusion nexus in 43 Sub-Saharan African countries between 2004 and 2019. The methodologies are the Generalized Method of Moment (GMM) to take care of double causality and country heterogeneity and IV-Tobit to take into account the limited range in the dependent variables. At all levels, digital technology measured by ICT indicators of the subscription rate of fixed and mobile telephone users, fixed broadband, internet users and a composite indicator of digitalization have positive significant effects on financial inclusion. A further robustness check is conducted by computing a composite indicator of financial inclusion to determine how it is affected by digital technology. The findings indicate that the rate of financial inclusion in Sub Saharan Africa rises with increasing digital technologies. There should be more investments in terms of promoting financial and technological infrastructures and also in the human capital sector since financial literacy can play an important part in promoting financial stability and inclusive finance in Africa. |
| Keywords: | Digital Technologies; Financial inclusion; Sub Saharan Africa |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/034&r= |
| By: | Hugo Inzirillo; Stanislas de Quenetain |
| Abstract: | Decentralized Finance (DeFi) is a new financial industry built on blockchain technologies. Decentralized financial services increased consequantly, the ability to lend, borrow and invest in decentralized investment vehicules, allowing investors to bypass third party intermediaries. DeFI promise is to reduce transactions costs, management fees while increasing the trust between agents of this financial industry 3.0. This paper provides an overview of Decentralized Finance different components as well as the risks involved in investing through these new vehicles. It also proposes an allocation methodology which integrate and quantify these risks. |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2205.14699&r= |
| By: | Asongu, Simplice A; Odhiambo, Nicholas M |
| Abstract: | The study assesses the how information sharing by means of mobile phones affects banking system efficiency in Africa with particular emphasis on income levels (Middle income versus Low income countries) and legal origins (English Common law versus French Civil law countries). The focus is on 53 African countries with data for the period 1996-2019 and the empirical evidence is based in Quantile regressions which enable the study to assess the nexus throughout the conditional distribution of banking system efficiency. The following findings are established: (i) mobile phone penetration promotes banking system efficiency in the 25th quantile and the median of banking system efficiency in low income countries while for middle income countries; it is significant exclusively in the bottom quantile (i.e. 10th quantile). (ii) With the exception of the highest (i.e. 90th) quantile in which the effect of the mobile phone is not significant in English Common law countries, the impact is significant throughout the conditional distribution of banking system efficiency in Common law countries. (iii) As for French Civil law countries, the nexus is only significant in the median and highest (i.e. 90th) quantile of the conditional distribution of banking system efficiency. Policy implications are discussed. |
| Keywords: | Allocation efficiency; Information asymmetry; Mobile phones |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:29004&r= |
| By: | Angela Tritto (Adjunct Assistant Professor at the Division of Public Policy; Institute for Emerging Market Studies, Division of Social Science, Hong Kong University of Science and Technology); Yujia He (Assistant Professor; Patterson School of Diplomacy and International Commerce, University of Kentucky); Victoria Amanda Junaedi (Research Assistant; Institute for Emerging Market Studies, Hong Kong University of Science and Technology) |
| Abstract: | Peer-to-peer (P2P) online lending has the potential to boost innovation and financial inclusion in emerging markets, yet it can also incur investment and borrower-related risks, such as privacy breaches. Driven by regulation control in China, Chinese investments flocked to Indonesia, causing a rapid expansion of online lending platforms. Similar to what happened in China prior to the regulatory crackdown, the P2P lending boom in Indonesia saw a rise in unethical and illegal business practices. The government responded by creating new regulations and institutions to mitigate risks without stifling the potential for financial inclusion. A proactive approach towards monitoring and regulating emerging high-tech industries should be sought by strengthening links with industry and civil society, and through international cooperation for policy and knowledge sharing. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:hku:briefs:202267&r= |
| By: | Lael Brainard |
| Date: | 2022–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:94445&r= |
| By: | Dario Guarascio; Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This paper revisits the Heckscher-Ohlin-Vanek (HOV) theorem and investigates its fit for digital tasks and ICT capital, which both represent endowment factors that are expected to shape the digital transformation. We use a theory-consistent methodology for calculating the measured net factor content of trade (Trefler and Zhu, 2010) and apply it to a unique dataset on digital and non-digital tasks performed in detailed occupations, as well as recent data on ICT capital stocks. Equipped with these data we provide new evidence on the factor-based trade patterns for 25 EU countries and use it to test the HOV theorem. Overall, the performance of the sign test and the rank test is good if not impressive. In 83% of the cases countries are net exporters of those factors with which they are abundantly endowed, with a higher score achieved for digital tasks than for ICT capital. We conclude that the fit of the HOV theorem for highly relevant endowments of the digital era is as good as that of traditional endowment factors. |
| Keywords: | Heckscher-Ohlin-Vanek theorem, factor content of trade, comparative advantages, digital tasks, ICT capital |
| JEL: | F11 F14 D57 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:217&r= |
| By: | Mattila, Juri; Seppälä, Timo; Bützow, Alexander; Hynönen, Kalle; Puittinen, Mika |
| Abstract: | Abstract In this brief, we analyze the implications of the new European Commission’s data act from the perspective of both industry agreements and the digital green transition. In addition, we ask whether the new regulation of data will contribute to the emergence of data sharing practices and the digital green transition. It is worth noting that the new data regulation in its current form does not consider the specificities of the industry. |
| Keywords: | Data act, Data, Industrial data, Contacts, Data sharing, Digitalization, Digital green transition |
| JEL: | K1 K12 K2 L89 |
| Date: | 2022–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:110&r= |
| By: | Andrea Fazio (University of Pavia, Pavia, Italy); Francesco Scervini (University of Pavia, Pavia, Italy); Tommaso Reggiani (Masaryk University, Brno, Czech Republic) |
| Abstract: | Social media play a relevant role in shaping social attitudes and economic behaviors of individuals. One of the first very well-known examples of social media campaign is the Ice Bucket Challenge (IBC), a charity campaign that went viral on social networks in August 2014 aiming at collecting money for the research on amyotrophic lateral sclerosis (ALS). We rely on UK longitudinal data to investigate the causal impact of the Ice Bucket Challenge on pro-social behaviors. In detail, this study shows that having been exposed to the IBC increases the probability of donating money, and it increases the amount of donating money among those who donate at most £100. We also find that exposure to the IBC has increased the probability of volunteering and the level of interpersonal trust. However, all these results, but the one on the intensive margins of donations, have a short duration, limited to less than one year, supporting the prevalent consensus that social media campaigns may have only short-term effects. |
| Keywords: | Donations, Volunteering, Altruism, Social media campaigns, Ice bucket challenge |
| JEL: | D64 O35 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:mub:wpaper:2022-09&r= |
| By: | Robert Gonzalez (Department of Economics, Moore School of Economics, University of South Carolina) |
| Abstract: | This paper examines the impact of mobile phone coverage on insurgent violence. In theory, access to coverage can lower violence by increasing the flow of information from civilians to the government and by shielding informers from retaliation. On the other hand, cell phone access can increase violence by reducing the cost of producing violence (e.g., facilitating coordination among insurgents, remote detonation of IEDs). To answer this question, we propose a novel method that can be employed by researchers studying the impact of mobile phone coverage of any outcome of interest. Specifically, we estimate a high spatial resolution radio-wave propagation model that uses variations in terrain topography and the spatial distribution of mobile phone towers to predict signal strength on the ground for each cell of a 1X1 kilometer grid of Afghanistan. The predicted signal strength is then used in a regression discontinuity design that compares grid cells within a small bandwidth around the signal strength threshold required for coverage. At this margin, access to coverage is mostly determined by minor exogenous changes in terrain features that lead to arbitrary diffractions and blocking of the signal. We find considerable evidence that the net effect of access to mobile phone technology is to lower insurgent violence. Specifically, grid cells with just enough coverage experience a 2 percentage point drop in the likelihood of any attack and a 0.8 percentage point drop in the likelihood of an IED. This effect remains robust even in areas where community norms are favorable to insurgents. Further analysis suggests that information gathering is likely a key mechanism. The deterring effect of coverage is significantly larger in cells where detection of insurgent activities by civilians is more likely: near populated areas, near primary roads, and during morning hours. Similarly, the effect of coverage on the failure rate of attacks–measured as the share of unsuccessful IEDs–significantly increases in these cells. |
| Keywords: | cell phone access, insurgent violence, spatial regression discontinuity |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:hic:wpaper:370&r= |
| By: | Pan, Lei; Dwumfour, Richard Adjei; Kheng, Veasna |
| Abstract: | This paper examines the impact of access to electricity on financial development. In doing so, we use plausibly exogenous variations in population density as an instrument for electrification rate. Using panel data for 44 countries in Sub-Saharan Africa over the period 2000 to 2018, the results suggest that more people having access to electricity can promote financial development. In addition, mobile phone and commercial bank branches diffusion serve as potential channels through which access to electricity affects financial development. The results have important implications for policies in overcoming barriers to electricity access. |
| Keywords: | Access to electricity; Financial development; Sub-Saharan Africa; Population density |
| JEL: | O16 Q43 |
| Date: | 2022–06–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113358&r= |
| By: | van Gils, Freek (Tilburg University, School of Economics and Management) |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:b85112bc-279b-4a1a-8c9a-2c37b10906ed&r= |
| By: | Erica Maria Brincat; Michaela Ghigo |
| Abstract: | The advertised house price index published by the Central Bank of Malta has a long time series – annual data starts from 1980 and quarterly data from 2000 – and is derived from listings of properties in Malta and Gozo as advertised on print media. Over time, however, the number of listings collected from the print media monitored by the Bank have declined considerably, reflecting the increasing use of social media and other online platforms. As a result, the Bank launched a project to collect advertised listings from online sources, with data collection commencing from the first quarter of 2019. This study compares the characteristics of the properties in the new dataset with those advertised on print media. Statistical techniques are used to detect outliers, which are removed using the interquartile range (IQR). Both indices exhibit similar dynamics, though there are some divergences in certain quarters, particularly towards the second half of 2021. The paper concludes with some methodological changes for the new index based on online sources to minimize the revisions with the previous series based on print media, which will be discontinued. |
| JEL: | C10 O18 R3 |
| URL: | http://d.repec.org/n?u=RePEc:mlt:ppaper:0422&r= |
| By: | Laura Courchesne (Princeton University; University of Oxford,); Brian McQuinn (University of Regina); Cody Buntain (University of Maryland) |
| Abstract: | On August 15, 2021, a spokesperson of the Islamic Emirate of Afghanistan, the Taliban’s self- proclaimed state, declared on Twitter: “With the help of God, and the support of the nation, we are now in control of all parts of the country. We would like to congratulate our nation on this big achievement.†After 20 years of conflict with U.S. and NATO coalition forces, no one predicted the speed with which the Taliban would consolidate power and precipitate the collapse of the Afghan government and military. Presenting research conducted by the newly established Centre for Artificial Intelligence, Data, and Conflict (CAIDAC), this report explores social media’s central role in the Taliban’s takeover of Afghanistan and the strategies used by the group to manipulate international and domestic audiences. It examines the Taliban’s social media strategy on Twitter throughout their takeover of Afghanistan, which culminated in the storming of Kabul on August 15, 2021. Specifically, we studied the activity of 63 accounts claimed by the Taliban leadership, spokespersons, and avowed members from April 1 to September 16, 2021. These accounts had more than 2 million followers on Twitter in September 2021. As of May 8, 2022, Taliban content reaches more than 3.3 million accounts. We also examined the broader Taliban ecosystem, which included more than 126,000 Twitter accounts that either retweeted Taliban content or posted content subsequently shared by the Taliban’s core network. We found clear patterns in the group’s communication strategies, visual imagery deployed, and the timing and content of social media activity and events on the ground. |
| Keywords: | Afghanistan, Civil War, Insurgency, Terrorism Politics, Public Opinion, Violence; Twitter |
| JEL: | D83 F51 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:pri:esocpu:30&r= |
| By: | Cédric Baudet (HES-SO - University of Applied Sciences and Arts of Western Switzerland); Maximiliano Jeanneret Medina (HES-SO - University of Applied Sciences and Arts of Western Switzerland) |
| Abstract: | La République et Canton du Jura (Suisse) a décidé d'intégrer le sceau numérique CERTUS et la blockchain KSI comme briques technologiques centrales de leur Guichet virtuel et plus largement de leur système d'information cyberadministratif. Or, ce projet s'opère dans une situation de gestion que l'on peut qualifier d'extrême. Alors que les technologies blockchain souffrent parfois d'une mauvaise réputation, que les administrations suisses subissent des cyberattaques et qu'un projet qui s'appuie sur la blockchain estonienne KSI a été rejeté par la Confédération, comment faire accepter ces technologies aux administrés de la République et Canton du Jura ? Au travers d'une recherche-action et afin de résoudre des problèmes pratiques, nous exposons quatre recommandations managériales, dont une qui propose de communiquer en deux niveaux d'abstraction afin de limiter les tensions dans une situation extrême de gestion. Le premier niveau doit exposer les cas métiers et l'importance pour un citoyen de rester de rester souverain de ses données. Un deuxième niveau, destiné aux spécialistes des technologies, peut exposer le fonctionnement des briques technologiques CERTUS et de la blockchain KSI. Enfin, dans une visée de création de connaissance scientifique, nous discutons d'un certain paradoxe de la transparence des technologies blockchain dans une situation extrême de gestion. |
| Abstract: | La République et Canton du Jura (Suisse) a décidé d'intégrer le sceau numérique CERTUS et la blockchain KSI comme briques technologiques centrales de leur Guichet virtuel et plus largement de leur système d'information cyberadministratif. Or, ce projet s'opère dans une situation de gestion que l'on peut qualifier d'extrême. Alors que les technologies blockchain souffrent parfois d'une mauvaise réputation, que les administrations suisses subissent des cyberattaques et qu'un projet qui s'appuie sur la blockchain estonienne KSI a été rejeté par la Confédération, comment faire accepter ces technologies aux administrés de la République et Canton du Jura ? Au travers d'une recherche-action et afin de résoudre des problèmes pratiques, nous exposons quatre recommandations managériales, dont une qui propose de communiquer en deux niveaux d'abstraction afin de limiter les tensions dans une situation extrême de gestion. Le premier niveau doit exposer les cas métiers et l'importance pour un citoyen de rester de rester souverain de ses données. Un deuxième niveau, destiné aux spécialistes des technologies, peut exposer le fonctionnement des briques technologiques CERTUS et de la blockchain KSI. Enfin, dans une visée de création de connaissance scientifique, nous discutons d'un certain paradoxe de la transparence des technologies blockchain dans une situation extrême de gestion. |
| Keywords: | acceptation,transparence,blockchain,cyberadministration,recherche-action |
| Date: | 2022–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03687117&r= |
| By: | Pamela E. Ofori (University of Insubria, Varese, Italy); Isaac K. Ofori (University of Insubria, Varese, Italy); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Motivated by the momentous rise in the new economy, the implementation of the African Continental Free Trade Area agreement, and the expected rebound of foreign direct investment to Africa from 2022, this study examines the joint effects of industrialisation and digital infrastructure on resource mobilisation in Africa. To this end, we mine data for 42 African countries for the analysis. The results, which are based on the system GMM estimator show that although unconditionally both industrialisation and digital infrastructure enhance (i) goods and services tax (GST), and (ii) profits, corporate and income tax (PCIT) mobilisation efforts in Africa, the effects of the former is rather remarkable in the presence of the latter. Particularly, we find that although all our digital infrastructure dynamics amplify the effect of industrialisation on GST, only ICT usage and ICT skills matter for PCIT. Second, the study unveils ICT thresholds for complementary policies. Accordingly, industrialisation and ICTs are necessary and sufficient conditions for tax revenue mobilisation only below some ICT thresholds. Above these ICT thresholds, complementary policies are needed to maintain the overall positive incidence on tax revenue mobilisation. Policy recommendations are provided in the end. |
| Keywords: | AfCFTA; Africa; ICT access; ICT diffusion; Industrialisation; Tax; Revenue |
| JEL: | C33 F6 H2 H71 O33 O55 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/045&r= |
| By: | Abi Casey; Sam Hayes-Morgan; Richard Heys; Matt Hughes; Pete Lee; Alison McCrae; Robert Kent-Smith; Matthew Steel |
| Abstract: | Gold and certain crypto-assets, such as Bitcoin, have several clear similarities. Both are highly liquid, demonstrating volatile quantities of trade and prices, but do not have a corresponding liability. At the current time under SNA08, non-monetary gold is treated as a Valuable, as a produced non-financial asset. During the process of developing propositions for updating the SNA it was proposed that crypto-assets without corresponding liability should be classified in the same way. This argument in the case of crypto-assets was rejected, partly as a result of an earlier draft of this paper, so these crypto-assets are instead recommended to be classified as a financial asset. This paper argues that non-monetary gold used for investment purposes should be similarly classified as a financial asset, both because the existing guidance is incomplete but also because by its nature it is a better conceptual match to being treated as a financial asset without corresponding liability, in the same way as monetary gold. This paper then proposes that if a wider category of financial assets without corresponding liability is being considered, this would form the natural home for crypto-assets without corresponding liability. |
| Keywords: | crypto-assets, financial assets, gold, national accounts, non-financial assets, valuables |
| JEL: | G1 G2 G5 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:escoed:escoe-dp-2020-17&r= |
| By: | Joshua S. Gans; Richard T. Holden |
| Abstract: | Blockchain consensus is a state whereby each node in a network agrees on the current state of the blockchain. Existing protocols achieve consensus via a contest or voting procedure to select one node as a dictator to propose new blocks. However, this procedure can still lead to potential attacks that make consensus harder to achieve or lead to coordination issues if multiple, competing chains (i.e., forks) are created with the potential that an untruthful fork might be selected. We explore the potential for mechanisms to be used to achieve consensus that are triggered when there is a dispute impeding consensus. Using the feature that nodes stake tokens in proof of stake (POS) protocols, we construct revelation mechanisms in which the unique (subgame perfect) equilibrium involves validating nodes propose truthful blocks using only the information that exists amongst all nodes. We construct operationally and computationally simple mechanisms under both Byzantine Fault Tolerance and a Longest Chain Rule, and discuss their robustness to attacks. Our perspective is that the use of simple mechanisms is an unexplored area of blockchain consensus and has the potential to mitigate known trade-offs and enhance scalability. |
| JEL: | D02 D47 D82 D86 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30189&r= |
| By: | Brian Micallef; Tiziana Gauci |
| Abstract: | The amount of banknotes issued by the Central Bank of Malta has persistently exceeded the allocation to the Bank from the ECB’s banknote allocation key, resulting in a corresponding net liability within the Eurosystem, a trend that has exacerbated since the outbreak of the COVID-19 pandemic. High demand for banknotes has also been experienced in the euro area in recent years even though the use of cash for retail transactions has decreased. This is referred to as “paradox of banknotes†and occurs because currency is not only used for daily transactions but also as a store of value while it is also influenced by demand from citizens outside the euro area. Part of the excess demand for banknotes in Malta can be attributed to the fact that the ECB banknote key is based on estimates that do not accurately reflect the strong population and economic growth registered in Malta since 2016. Structural factors also play a part in explaining the demand for banknotes with population growth emerging as a common factor for all countries experiencing an excess demand for banknotes. On the other hand, the evidence for demand arising from tourism is relatively weak. |
| JEL: | E20 E41 E58 |
| URL: | http://d.repec.org/n?u=RePEc:mlt:ppaper:0222&r= |
| By: | Vincent Leon; S. Rasoul Etesami; Rakesh Nagi |
| Abstract: | We consider the diffusion of innovation in social networks using a game-theoretic approach. Each individual plays a coordination game with its neighbors and decides what alternative product to adopt to maximize its payoff. As products are used in conjunction with others and through repeated interactions, individuals are more interested in their long-term benefits and tend to show trustworthiness to others to maximize their long-term payoffs. To capture such trustworthy behavior, we deviate from the expected utility theory and use a new notion of rationality based on limited-trust equilibrium (LTE). By incorporating such notion into the diffusion model, we analyze the convergence of emerging dynamics to their equilibrium points using a mean-field approximation. We study the equilibrium state and the convergence rate of the diffusion process using the absorption probability and the expected absorption time of a reduced-size absorbing Markov chain. We also show that the LTE diffusion model under the best-response strategy can be converted to the well-known linear threshold model. Simulations show that when agents behave trustworthily, their long-term payoffs will increase significantly compared to the case when they are solely self-interested. Moreover, the Markov chain analysis provides a good estimation of the convergence property over random networks. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.06318&r= |
| By: | Diego Gómez–Carmona; César Serrano–Domínguez; Pedro Pablo Marín–Dueñas; Juan José Mier–Terán Franco |
| Abstract: | En el entorno virtual, las señales visuales permiten al consumidor percibir el producto, determinar su actitud y formar una preferencia. Los usuarios elegirán un producto u otro en función del atractivo visual de los anuncios que ven. Los comercializadores de vino deben considerar la importancia de los elementos incluidos en el anuncio y la importancia del diseño para atraer la atención del consumidor. Optimizar los elementos incluidos en estos mensajes puede ayudar a captar la atención de los consumidores y a conseguir una mayor tasa de clics en los anuncios. El principal objetivo de este trabajo es analizar la atención que alcanzan los diferentes elementos empleados en el diseño. Para analizar la atención, utilizamos una metodología de seguimiento ocular. Los principales resultados sugieren que la atención se capta más rápidamente con una botella individual o pack con etiqueta que con una botella individual o pack sin etiqueta en los anuncios de Facebook. |
| Keywords: | Efectividad publicitaria, Anuncios en Facebook, Eye–Tracking, Packaging de vino. |
| JEL: | M31 M37 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:ovr:docfra:2203&r= |
| By: | Luyao Zhang; Tianyu Wu; Saad Lahrichi; Carlos-Gustavo Salas-Flores; Jiayi Li |
| Abstract: | Recent advances in Artificial Intelligence (AI) have made algorithmic trading play a central role in finance. However, current research and applications are disconnected information islands. We propose a generally applicable pipeline for designing, programming, and evaluating the algorithmic trading of stock and crypto assets. Moreover, we demonstrate how our data science pipeline works with respect to four conventional algorithms: the moving average crossover, volume-weighted average price, sentiment analysis, and statistical arbitrage algorithms. Our study offers a systematic way to program, evaluate, and compare different trading strategies. Furthermore, we implement our algorithms through object-oriented programming in Python3, which serves as open-source software for future academic research and applications. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.14932&r= |
| By: | Baccianti, Claudio; Labhard, Vincent; Lehtimäki, Jonne |
| Abstract: | Digitalisation can be described as a sequence of technology and supply shocks which affect the economy through employment and labour markets, productivity and output, and competition and market structure. This paper focuses on how digitalisation - the process of diffusion of digital technologies - is affected by institutions and governance. It discusses a number of theoretical mechanisms and empirical evidence for different sets of European and other countries. The results indicate that a higher quality of institutions is usually associated with both a greater speed of diffusion and a greater spread of digital technologies. The results also suggest that there are large, policy-relevant differences in the diffusion process depending on the level of development as well as the state of technological change of a country. JEL Classification: E02, O11, O31, O33, O57 |
| Keywords: | adoption, economy, estimates, panel, technology |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20222675&r= |
| By: | Jaller, Miguel; Pahwa, Anmol |
| Abstract: | The COVID-19 pandemic led to a significant breakdown of the traditional retail sector, resulting in a substantial surge in ecommerce demand for the delivery of essential goods. The e-retailers coped with this surge in demand, albeit while operating at a much lower level of service than usual, by outsourcing part of their operations through: crowdsourced delivery fleets, alternative pickup/delivery locations, 3rd party logistics service providers, etc. Given e-retailers’ role in the supply of essential goods, the pandemic raised concerns pertaining to e-retailers’ ability to maintain and efficiently restore level of service in similar market disruptions. This study assesses the resilience of last-mile distribution operations under disruptions, by integrating a continuous approximation–based last-mile distribution model; the resilience triangle concept; and the Robustness, Redundancy, Resourcefulness, and Rapidity (R4) resilience framework. The resulting integrated tool, the R4 Resilience Triangle Framework, is a novel performance-based qualitative-cum-quantitative domain-agnostic framework (where “domain” means “discipline,” such as engineering, economics, etc.). Through a set of empirical analyses, this study highlights the opportunities and challenges of different distribution/outsourcing strategies to cope with disruption. For example, the study analyzed the use of an independent crowdsourced fleet (flexible service contingent on driver availability); the use of collection-point pickup (unconstrained downstream capacity contingent on customer willingness to self-collect); and integration with a logistics service provider (reliable service with high distribution costs). Overall, the e-retailers must create a suitable platform to ensure reliable crowdsourced deliveries, position sufficient collection-points to ensure customer willingness to self-collect, and negotiate contracts with several logistics service providers to ensure adequate backup distribution. |
| Keywords: | Engineering, E-commerce, COVID-19, pickup and delivery services, third party logistics providers, disaster resilience, demand, last mile, empirical methods |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt6k67k3zt&r= |