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on Payment Systems and Financial Technology |
|
Issue of 2022‒10‒17
thirty papers chosen by |
| By: | Wilko Bolt; Vera Lubbersen; Peter Wierts |
| Abstract: | The rise of new forms of private money is reviving a long-standing debate on the appropriate balance between private and public interests in money and payments. The main aim of this paper is to explore an integrated policy analysis of various digital assets that may function as money: bank deposits, non-backed crypto’s, stablecoins and Central Bank Digital Currency (CBDC). In our view, public and private money should coexist to get the best of both worlds: trust and innovation. Getting the balance right is however not an easy task. It requires a digital update of public money and effective regulation of crypto’s and stablecoins. We argue that convertibility between public and private money should be a leading principle both for the design of CBDC and for the regulation of stablecoins that could potentially be widely adopted as a means of payment. |
| Keywords: | digital payments, crypto’s, stablecoins, CBDC, regulation |
| JEL: | D4 E4 G2 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:736&r= |
| By: | Njuguna Ndung'u |
| Abstract: | This paper traces the development of fintech in sub-Saharan Africa, its evolution over time, and the unfolding benefits attained at each stage of its adoption and market evolution. From the onset, fintechs have revolutionized retail electronic payment systems—a revolution that has evolved into a technological platform to manage micro-savers' accounts, virtual savings and credit systems, public financial management, and cross-border remittances, and has led to the adoption of new monetary policy frameworks. |
| Keywords: | Fintech, Financial inclusion, Saving, Technology, Sub-Saharan Africa |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-101&r= |
| By: | Olga D. Khon (Independent Researcher) |
| Abstract: | The research is dedicated to the examination of cryptocurrencies' market price and money supply modelling in the crypto ecosystem. The study provides a model for a money supply construction under a proof-of-stake blockchain within consequential empirical tests. The call for financial regulation and measures in action was unveiled. Price bubbles and cryptocurrency volatility are also depicted on the edge of rising global inflation. Amid the discussion, the recent crypto scams revealed are applied ? to trace blockchain purity against the shadow schemes and criminal use of the technology. |
| Keywords: | Cryptocurrency; Blockchain; Proof-of-Stake; Ethereum; Bitcoin; MINA Blockchain |
| JEL: | G28 G29 G32 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:13015565&r= |
| By: | Sam Jones; Ivan Manhique |
| Abstract: | Digital labour platforms have grown five-fold over the last decade, enabling significant expansion in gig work worldwide. We interrogate the criticism that these platforms tend to amplify aggregate economic shocks for registered users (workers). Based on the universe of records from a matching platform for informal sector manual freelancers in Mozambique, we analyse how task supply and demand altered with the onset of COVID-19. |
| Keywords: | COVID-19, Digital labour platforms, Labour market, Shocks, Mozambique |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-108&r= |
| By: | Michiel Bijlsma; Carin van der Cruijsen; Nicole Jonker |
| Abstract: | The COVID-19 pandemic has increased our online presence and unleashed a new discussion on sharing sensitive personal data. Upcoming European legislation will facilitate data sharing in several areas, following the lead of the revised payments directive (PSD2), which enables payments data sharing with third parties. However, little is known about what drives consumers’ preferences with different types of data, as preferences may differ according to the type of data, type of usage or type of firm using the data. Using a discrete-choice survey approach among a representative group of Dutch consumers, we find that next to health data, people are hesitant to share their financial data on payments, wealth and pensions, compared to other types of consumer data. Second, consumers are especially cautious about sharing their data when they are not used anonymously. Third, consumers are more hesitant to share their data with BigTechs, webshops and insurers than they are with banks. Fourth, a financial reward can trigger data sharing by consumers. Last, we show that attitudes towards data usage depend on personal characteristics, consumers’ digital skills, online behaviour and their trust in the firms using the data. |
| Keywords: | consumer data; data sharing; banks; BigTechs; insurers; webshop; trust, digital skills |
| JEL: | D12 E42 G21 G22 G23 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:728&r= |
| By: | World Bank |
| Keywords: | Information and Communication Technologies - Digital Divide Law and Development - Private Sector Development Law Private Sector Development - Competitiveness and Competition Policy Private Sector Development - E-Business Private Sector Development - Legal Regulation and Business Environment |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:36364&r= |
| By: | Jorge Padilla; Salvatore Piccolo; Shiva Shekhar |
| Abstract: | In this paper, we examine how the introduction of network externalities impact an open and vertically integrated platform’s post-merger contractual relationship with third-party sellers distributing through its marketplace. Regardless of whether the platform uses linear contracts or two-part tariffs, we find that, provided these contracts are public, the platform has no incentive to exclude its non-integrated rivals and that the latter’s market share rises as network effects gain importance. Vertical integration serves as a commitment device that open platforms can use to convince potential users (e.g., consumers and developers) that their ecosystem will be large and compelling. Interestingly, when the open platform competes with a closed rival, i.e., with a fully integrated ecosystem, it may find it profitable to subsidize independent third-party sellers to strategically steer demand away from the competing ecosystem. These results have novel managerial implications on the incentives of a platform to open up its ecosystem to third-party sellers, as well as for the regulation of vertical integration in the presence of network effect and when different platforms operate alternative business models. |
| Keywords: | open ecosystems, network externalities, platforms, vertical integration |
| JEL: | L22 L41 L51 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9901&r= |
| By: | Amedeo Piolatto; Florian Schuett |
| Abstract: | We study the design of online platforms that aggregate information and facilitate transac tions. Two different designs can be observed in the market: revealing platforms that disclose the identity of transaction partners (e.g. Booking) and anonymous platforms that do not (e.g. Hotwire). To analyse the implications of this design choice for profits and surplus, we develop a model in which consumers differ in their location as well as their preferred product variety. Sellers offer their products for sale both directly (`offline') and indirectly via the platform (`online') but are unable to credibly disclose the product variety they offer when selling offline. The model gives rise to a novel trade-off associated with the anonymous platform design: offline, consumers observe location but not variety; online, they observe variety but not location. While the revealing design leads to more informed consumers and better matches, the anonymous design allows sellers to price discriminate and introduces competition between sellers whose markets would otherwise be segmented. We show that the comparison between the designs depends crucially on the relative importance of information about location vis-à-vis information about variety. For an intermediate range, the anonymous design outperforms the revealing design in terms of both profits and welfare. |
| Keywords: | anonymous information platforms, opaque products, horizontal competition, experience goods, mismatch costs |
| JEL: | D02 D21 D43 D61 D83 L11 L13 L15 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1325&r= |
| By: | Kajdi, László |
| Abstract: | Payments are a key focus of central banks, as - together with the safe, efficient operation of the payments market – wide access to cash is fundamentally important for a healthy economy. In this study, three main research areas were investigated: 1. socioeconomic characteristics that can be associated with financial inclusion; 2. factors behind consumers´ payment choices; 3. underlying factors for holding cash in a wallet (i.e. for transactional purposes). Regression results for the first research question confirmed the findings of international literature, i.e. mainly older age, lower income and lower educational level is associated with the lack of access to electronic payment options. The study pursues various approaches to investigate consumer payments choices, and the results from most models showed that those with higher level of income and education, or lower level of cash income are more likely to prefer and actually use electronic payment methods. Finally, concerning the holding of cash the initial expectations were confirmed i.e. those who do not use cash for daily transactions tend to keep less cash in their wallet, while those who indicated preference for cash payments or higher importance of cash payment option are more likely to keep higher cash amounts. JEL Classification: D11, D12, E42, J33 |
| Keywords: | cash, financial inclusion, payments |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20222729&r= |
| By: | El-Khatib, Youssef; Hatemi-J, Abdulnasser |
| Abstract: | Cryptocurrencies are increasingly utilized by investors and financial institutions worldwide. The current paper proposes a prediction model for a cryptocurrency that encompasses three properties observed in the markets for cryptocurrencies—namely high volatility, illiquidity, and regime shifts. By using Ito calculus, we provide a solution for the suggested stochastic differential equation (SDE) along with a proof. Moreover, numerical simulations are performed and are compared to the real data, which seems to capture the dynamics of the price path of a cryptocurrency in the real markets. |
| Keywords: | Stochastic Modeling, cryptocurrencies, illiquid, high volatility, regime switching, CTMC. |
| JEL: | G1 G12 G17 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114556&r= |
| By: | Susan Athey; Dean Karlan; Emil Palikot; Yuan Yuan |
| Abstract: | Online platforms often face challenges being both fair (i.e., non-discriminatory) and efficient (i.e., maximizing revenue). Using computer vision algorithms and observational data from a micro-lending marketplace, we find that choices made by borrowers creating online profiles impact both of these objectives. We further support this conclusion with a web-based randomized survey experiment. In the experiment, we create profile images using Generative Adversarial Networks that differ in a specific feature and estimate it's impact on lender demand. We then counterfactually evaluate alternative platform policies and identify particular approaches to influencing the changeable profile photo features that can ameliorate the fairness-efficiency tension. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2209.01235&r= |
| By: | Mathilde Aubouin |
| Abstract: | The COVID-19 crisis accelerated the digital transition and reinforced households' existing digital divide. This paper aims to identify determinants of digital inequalities in access, usage, and type of usage in France and the reasons for the non-access to the internet. Using French Institute of Statistics (INSEE) surveys between 2007 and 2019, we show that generation, education, and income are significant determinants of digital consumption. The gender digital gap exists only among older generations. The digital divide is mainly a problem of internet access in France. Disparities in usage narrow once an individual has access to and uses the internet. Based on our results, we recommend investing in digital education and implementing financial support to reduce the digital divide. |
| Keywords: | Digital Divide; Internet use; Internet access; Pseudo-panel methods; France |
| JEL: | L86 L96 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2022-22&r= |
| By: | Claudia Biancotti (Bank of Italy) |
| Abstract: | The crypto world is at a turning point. In the spring of 2022, idiosyncratic weaknesses and adverse macro conditions combined to precipitate a major crisis. Is this the end of crypto? Not necessarily. As bad projects fall by the wayside, the industry is being pushed to find technical solutions that will restore public trust and deliver better performances. At the same time, key jurisdictions around the world are deploying regulations that will make the sector more orderly. Innovation and legal certainty may be the twin foundations upon which crypto flourishes, provided that regulators and the industry cooperate constructively and creatively. This will not always be easy, as crypto culture and any legal framework are at odds in some domains. The main examples are: tokens that do not embed claims on any entity, anonymity, and censorship resistance, i.e. the technical impossibility of blocking transactions on permissionless blockchains. Achieving a compromise on many facets of these problems looks possible, while for others, the authorities may have to prohibit behaviour that some crypto enthusiasts consider to be non-negotiable. |
| Keywords: | Crypto-assets, financial regulation, blockchain |
| JEL: | G18 O30 O38 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_711_22&r= |
| By: | Doh-Shin Jeon (Toulouse School of Economics, University of Toulouse Capitole and CEPR); Yassine Lefouili (Toulouse School of Economics, University of Toulouse Capitole); Leonardo Madio (Department of economics and management †Marco Fanno†, University of Padova and CESifo) |
| Abstract: | We study a platformâs incentives to delist IP-infringing products and the effects of holding the platform liable for the presence of such products on innovation and consumer welfare. For a given number of buyers, platform liability increases innovation by reducing the competitive pressure faced by innovative products. However, there can be a misalignment of interests between innovators and buyers. Furthermore, platform liability can have unintended consequences, which overturn the intended effect on innovation. Platform liability tends to increase (decrease) innovation and consumer welfare when the elasticity of participation of innovators is high (low) and that of buyers is low (high). |
| Keywords: | platform, liability, intellectual property, innovation |
| JEL: | K40 K42 K13 L13 L22 L86 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0285&r= |
| By: | Florent Saucède (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | To restore consumer trust and confidence in food systems, some retailers and manufacturers exploit the blockchain technology to support the total traceability of their supply chains. We analyze how Walmart and Carrefour, two pioneers of food blockchains, use this technology. We show how it contributes to the dimensions and stakes of traceability. We characterize two contrasting approaches. The first one aims to control food safety by improving the piloting and the functioning of supply chains. The second one is marketing–oriented, and aims at building consumer trust by mobilizing supply chain actors to co-construct a set of facts and evidence, put into a narrative to bring transparency on the origin of products and the virtuous practices of the actors who participate in their quality. |
| Abstract: | Pour restaurer la confiance des consommateurs dans les systèmes alimentaires, certains distributeurs ou fabricants mobilisent la technologie blockchain en support de la traçabilité totale de leurs chaînes d'approvisionnement, ou supply chains. Nous analysons comment Walmart et Carrefour, deux pionniers des blockchains alimentaires, utilisent cette technologie. Nous montrons comment elle contribue aux dimensions et enjeux de la traçabilité. Nous caractérisons deux approches contrastées. La première a pour objectif de maîtriser la sécurité sanitaire de l'alimentation en s'appuyant sur l'amélioration du pilotage et du fonctionnement de la supply chain, que la technologie permet. La seconde, orientée marketing, vise à restaurer la confiance des consommateurs en mobilisant les acteurs de la supply chain pour co-construire un ensemble de faits et de preuves, mis en récit pour apporter de la transparence sur l'origine des produits et les pratiques vertueuses des acteurs qui participent à leur qualité. |
| Keywords: | blockchain,traçabilité |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03773361&r= |
| By: | Hermann Ndoya (University of Dschang, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The aim of this paper is to analyse the impact of digital divide on income inequality in sub-Saharan Africa over the period 2004-2016. In applying a finite mixture model (FMM) to a sample of 35 sub-Saharan African (SSA) countries, this study posits that digital divide affects income inequality differently. Our findings show that the effect of digital divide on income inequality varies across two distinct groups of countries, which differ according to their level of globalization. In addition, the study shows that, most globalized countries are more inclined to be in the group where the effect of digital divide on income inequality is negative. The results are consistent to several robustness checks, including alternative measures of income inequality and additional control variables. The study complements that extant literature by assessing linkages between the digital divide, globalization and income inequality in sub-Saharan African countries contingent on cross-country heterogeneity. |
| Keywords: | Digital Divide, Income Inequality, Globalization, Finite Mixture model |
| JEL: | C14 O15 O33 O55 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/064&r= |
| By: | Romane Guillot (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Magali Aubert (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Anne Mione (MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier) |
| Abstract: | E-commerce is now penetrating the food sector, particularly through digital marketing platforms. Food system stakeholders are wondering: Do these organizations strengthen the link/connection between producers and consumers? Do they promote fairer remuneration for farmers? Do they introduce new risks for them? These platforms facilitate the exchange of information and limit certain costs associated with marketing. However, they can create power asymmetries and imbalances in value sharing. The instability of the sector and the addition of digital and distribution giants raise many questions about the evolution of platforms. In this context, vigilance on the part of producers is essential in order to choose the platforms best suited to their needs. |
| Abstract: | Le e-commerce pénètre aujourd'hui le secteur alimentaire, notamment via les plateformes numériques de commercialisation. Les acteurs du système alimentaire s'interrogent : ces organisations renforcent-elles le lien entre les producteurs et les consommateurs ? Favorisent-elles une rémunération plus juste des agriculteurs ? Introduisent-elles de nouveaux risques pour eux ? Ces plateformes facilitent l'échange d'informations et limitent certains coûts associés à la commercialisation. Elles peuvent néanmoins créer des asymétries de pouvoir et des déséquilibres dans le partage de la valeur. L'instabilité du secteur et l'arrivée des géants du numérique et de la distribution soulèvent de nombreuses questions quant à l'évolution des plateformes. Dans ce contexte, la vigilance des producteurs est indispensable pour choisir les plateformes les mieux adaptées à leurs besoins. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03772689&r= |
| By: | David Karpa; Torben Klarl; Michael Rochlitz |
| Abstract: | The most important resource to improve technologies in the field of artificial intelligence is data. Two types of policies are crucial in this respect: privacy and data-sharing regulations, and the use of surveillance technologies for policing. Both types of policies vary substantially across countries and political regimes. In this paper, we examine how authoritarian and democratic political institutions can influence the quality of research in artificial intelligence, and the availability of large-scale datasets to improve and train deep learning algorithms. We focus mainly on the Chinese case, and find that - ceteris paribus - authoritarian political institutions continue to have a negative effect on innovation. They can, however, have a positive effect on research in deep learning, via the availability of large-scale datasets that have been obtained through government surveillance. We propose a research agenda to study which of the two effects might dominate in a race for leadership in artificial intelligence between countries with different political institutions, such as the United States and China. |
| Keywords: | Artificial intelligence, political institutions, big data, surveillance, innovation, China |
| JEL: | O25 O31 O38 P16 P51 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:atv:wpaper:2108&r= |
| By: | Tii N. Nchofoung (University of Dschang, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Vanessa S. Tchamyou (Yaoundé, Cameroon) |
| Abstract: | At the 2010 G20 Summit, the use of formal financial services was recognized as one of the main pillars of the global development agenda. At the same time, the fifth goal of the Sustainable development agenda outlined the importance of gender inclusion for sustainable development. Empirical research on the effect of gender inclusion on inclusive finance has however been limited to micro level studies. This study aims to verify the effect of gender political inclusion on financial inclusion on a sample of 37 African countries from 2004-2020. The empirical methodology involves the Ordinary Least Squares (OLS), the Tobit regression and the System Generalized Method of Moments (GMM) methodologies. The results from these methods show that gender political inclusion is enhancing on financial inclusion in Africa, and this finding is robust across alternative specifications of gender inclusion and inclusive finance. Besides, governance exhibits a positive synergy effect with gender political inclusion on inclusive finance. Policy implications are discussed. |
| Keywords: | Gender; political inclusion; inclusive finance; Africa |
| JEL: | G20 I32 O55 P16 P43 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/063&r= |
| By: | Thomä, Jörg |
| Abstract: | Regarding the spatial impact of digitalization, the concern is often expressed that rural areas and the companies located there are disadvantaged by a digital divide compared to urban regions. Against this background, this paper explores the role of the urban/rural location of a small firm in the use of digital communication and information technologies (ICT). With the help of a cluster analysis approach, different modes of digitalization in the German small enterprise sector are identified. According to this, four groups of small firms can be distinguished in accordance to the maturity level concept of digital transformation: non-digital firms, digital beginners, platform-oriented firms and digital manufacturers. From a spatial perspective, it can be seen that the members of the platform-oriented group are relatively often located in urban regions, whereas the digital manufacturers are relatively often found in rural areas. These findings are interpreted as an indication that small firms at least partially consciously assign themselves to one of these digitalization modes, depending on which business model is most effective in the respective (urban or rural) business environment. By contrast, whether a small firm has not yet done anything in terms of digitalization or is only at the beginning of the digital transformation process does not significantly depend on the location of the company. The paper concludes with implications for policy and research. |
| Keywords: | Digitalization,Rural regions,Digital divide,Urban-rural typology,SMEs |
| JEL: | D22 O33 R11 R12 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:372022&r= |
| By: | Tii N. Nchofoung (University of Dschang, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Vanessa S. Tchamyou (Yaoundé, Cameroon) |
| Abstract: | At the 2010 G20 Summit, the use of formal financial services was recognized as one of the main pillars of the global development agenda. At the same time, the fifth goal of the Sustainable development agenda outlined the importance of gender inclusion for sustainable development. Empirical research on the effect of gender inclusion on inclusive finance has however been limited to micro level studies. This study aims to verify the effect of gender political inclusion on financial inclusion on a sample of 37 African countries from 2004-2020. The empirical methodology involves the Ordinary Least Squares (OLS), the Tobit regression and the System Generalized Method of Moments (GMM) methodologies. The results from these methods show that gender political inclusion is enhancing on financial inclusion in Africa, and this finding is robust across alternative specifications of gender inclusion and inclusive finance. Besides, governance exhibits a positive synergy effect with gender political inclusion on inclusive finance. Policy implications are discussed. |
| Keywords: | Gender; political inclusion; inclusive finance; Africa |
| JEL: | G20 I32 O55 P16 P43 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:22/014&r= |
| By: | Luyi Yang (The University of California, Berkeley, Haas School of Business, 2220 Piedmont Ave, Berkeley, CA 94720 USA); Chen Jin (National University of Singapore, School of Computing, Department of Information Systems and Analytics, 13 Computing Drive, Singapore 117417, Republic of Singapore); Zhen Shao (University of Science and Technology of China, No.96, JinZhai Road Baohe District, Hefei, Anhui, 230026, P.R.China) |
| Abstract: | This paper studies a novel social e-commerce practice known as “help-and-haggle,” whereby an online consumer can ask friends to help her “haggle” over the price of a product. Each time a friend agrees to help, the price is cut by a random amount, and if the consumer cuts the product price down to zero within a time limit, she will get the product for free; otherwise, the product reverts to the original price. Help-and-haggle enables the firm to promote its product and boost its social reach as consumers effectively refer their friends to the firm. We model the consumer’s dynamic referral behavior in help-and-haggle and provide prescriptive guidance on how the firm should randomize price cuts. Our results are as follows. First, contrary to conventional wisdom, the firm should not always reduce the (realized) price-cut amount if referrals are less costly for the consumer. In fact, the minimum number of successful referrals the consumer must make to have a chance to win the product can be non-monotone in referral cost. Second, relative to the deterministic-price-cut benchmark, a random-price-cut scheme widens social reach and often lowers promotion expense while increasing profit from product sales at the same time. Third, help-and-haggle is more cost-effective in social reach than a reward-per-referral program that offers a cash reward for each successful referral. However, using the prospect of a free product to attract referrals cannibalizes product sales, potentially causing help-and-haggle to fall short in the total firm payoff. Yet, if consumers are heterogeneous in product valuation and referral cost or if they face increasing marginal referral costs, help-and-haggle can outperform the reward-per-referral program. |
| Keywords: | Customer referrals; social e-commerce; gamification; dynamic programming |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:2201&r= |
| By: | Isabelle Piot-Lepetit (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, Institut Convergences Agriculture Numérique #DigitAg - IRSTEA - Institut National de Recherche en Sciences et Technologies pour l'Environnement et l'Agriculture); Mauro Florez (MRM - Montpellier Research in Management - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier, Institut Convergences Agriculture Numérique #DigitAg - IRSTEA - Institut National de Recherche en Sciences et Technologies pour l'Environnement et l'Agriculture) |
| Abstract: | Start-up companies represent a powerful innovation process to push forward digital innovation and develop disruptive products and services based on digital technologies. At the same time, they challenge well-established companies that need to involve themselves in more ambidextrous innovation processes to stay competitive, pushing them to launch initiatives focusing on both internal innovations and organizational changes and external or open innovation opportunities. |
| Keywords: | start-up |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03773431&r= |
| By: | Carl Magnus Magnusson (OECD); Daniel Blume (OECD) |
| Abstract: | This paper addresses the implications of digitalisation on corporate governance. It focuses in particular on the potential for digitalisation to improve market supervision and enforcement of corporate governance related requirements and the efficiency of disclosure; its use for remote and hybrid participation in general shareholder meetings; the implications of digital security risks and the role of the board in their management; and how digitalisation can encourage the development of primary public equity markets. |
| Date: | 2022–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaae:26-en&r= |
| By: | Tomaso Duso; Alexander Schiersch |
| Abstract: | The advent of cloud computing promises to improve the way firms utilize IT solutions. Firms are expected to replace large and inflexible fixed-cost investments in IT with more targeted variable spending in cloud solutions. In addition, cloud usage is expected to increase the productivity of firms, as it allows them to quickly customize the IT they require to their specific needs. We assess these assertions using data on a representative sample of firms provided by the German statistical offices for the years 2014 and 2016, which allows to observe who are the cloud users. Our analysis explicitly accounts for the self-selection into cloud adoption within an endogenous treatment regression framework. Broadband availability at the municipality level is used as an exogenous shifter for cloud usage. We show that, while cloud adoption does not impact IT investment in any sectors, it does significantly improve labor productivity for firms in manufacturing and in information and communication services. |
| Keywords: | Cloud computing, investment, productivity, IT, substitution, firm performance |
| JEL: | D24 D25 L60 L80 O14 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2017&r= |
| By: | Ahmet Degerli; Jing Wang |
| Abstract: | We show that as nonbanks' market share increases in a local residential mortgage market, the quality of mortgage services in the market improves. Two instrumental variable analyses exploiting (1) stress tests conducted by the Federal Reserve, and (2) mortgage industry surety bonds required by each state confirm this finding. We find evidence that as nonbanks grow their market share, they develop a specialty in servicing lower-income borrowers and increase investment in technology, leading to improved service quality. This improvement in service quality is more salient in counties with a higher percentage of minority populations. |
| Keywords: | Product quality; Mortgage lending; Banks; Nonbanks |
| JEL: | G21 G28 L13 L15 |
| Date: | 2022–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2022-59&r= |
| By: | De Blasis, Riccardo; Galati, Luca; Webb, Alexander; Webb, Robert I. |
| Abstract: | How does stablecoin design affect market behavior in turbulent periods? Stablecoins attempt to maintain a “stable†peg to the US dollar, but do so with wildly varying structural designs. The spectacular collapse of the TerraUSD (UST) stablecoin and linked Terra (LUNA) token in May 2022 precipitated a series of reactions across major stablecoins, with some experiencing falls in value and others gaining value. Using a BEKK model, we examine the reaction to this exogenous shock and find significant contagion effects from the UST collapse, likely partially due to herding behavior among traders. We test the varying reactions among stablecoins and find that stablecoin design differences affect the direction, magnitude, and duration of the response to shocks. Implications for stablecoin developers, exchanges, traders, and regulators are discussed. |
| Keywords: | Stablecoins, Herding, Information cascade, Volatility spillovers, Market crashes, Financial contagion |
| JEL: | D47 F31 F61 G14 G41 |
| Date: | 2022–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:mol:ecsdps:esdp22088&r= |
| By: | Dirk Fornahl; Nils Grashof; Alexander Kopka |
| Abstract: | While innovations have been acknowledged as a key factor for economic growth, it appears that they are unique features of central actors. Recently, especially the outstanding opportunities arising from rather radical innovations have been highlighted. These kinds of innovations combine knowledge pieces that have not been combined before and consequently create something radically new. While the influence of firms' network position on innovativeness in general has already been investigated, it remains to be researched in the context of radical innovations. We address this research gap by empirically investigating the influence of firms' network position on the emergence and diffusion patterns of radical innovations. By analysing a unique dataset evidence is found that central firms are essential drivers of the emergence and diffusion of radical innovations. However, the results also indicate that under certain conditions (e.g. high knowledge diversity) also peripheral firms can contribute to the emergence of radical innovations. |
| Keywords: | Radical innovations, emergence, diffusion, core-periphery, firm-level |
| JEL: | O31 O33 R11 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:atv:wpaper:2102&r= |
| By: | Michel Grabisch (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UP1 - Université Paris 1 Panthéon-Sorbonne); Antoine Mandel (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UP1 - Université Paris 1 Panthéon-Sorbonne); Agnieszka Rusinowska (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We propose a model of the joint evolution of opinions and social relationships in a setting where social influence decays over time. The dynamics are based on bounded confidence: social connections between individuals with distant opinions are severed while new connections are formed between individuals with similar opinions. Our model naturally gives raise to strong diversity, i.e., the persistence of heterogeneous opinions in connected societies, a phenomenon that most existing models fail to capture. The intensity of social interactions is the key parameter that governs the dynamics. First, it determines the asymptotic distribution of opinions. In particular, increasing the intensity of social interactions brings society closer to consensus. Second, it determines the risk of polarization, which is shown to increase with the intensity of social interactions. Our results allow to frame the problem of the design of public debates in a formal setting. We hence characterize the optimal strategy for a social planner who controls the intensity of the public debate and thus faces a trade-off between the pursuit of social consensus and the risk of polarization. We also consider applications to political campaigning and show that both minority and majority candidates can have incentives to lead society towards polarization. |
| Keywords: | opinion dynamics,network formation,network fragility,polarization,institution design,political campaign |
| Date: | 2022–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:hal-03770884&r= |
| By: | Yin Li (Fudan University); William Lazonick (The Academic-Industry Research Network) |
| Abstract: | We employ the "social conditions of innovative enterprise" framework to analyze the key determinants of China's development path from the economic reforms of 1978 to the present. First, we focus on how government investments in human capabilities and physical infrastructure provided foundational support for the emergence of Chinese enterprises capable of technological learning. Second, we delve into the main modes by which Chinese firms engaged in technological learning from abroad -joint ventures with foreign multinationals, global value chains, and experienced high-tech returnees - that have contributed to industrial development in China. Third, we provide evidence on achievements in indigenous innovation - by which we mean improvements in national productive capabilities that build on learning from abroad and enable the innovating firms to engage in global competition - in the computer, automobile, communication - technology, and semiconductor - fabrication industries. Finally, we sketch out the implications of our approach for current debates on the role of innovation in China's development path as it continues to unfold. |
| Keywords: | China, investment, infrastructure, knowledge, indigenous innovation, globalization, development. |
| JEL: | D2 F2 F6 H1 H4 H5 H7 L1 L2 L5 L6 O1 O2 O3 O5 P1 |
| Date: | 2022–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp190&r= |