nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2023‒11‒06
thirty-six papers chosen by
Bernardo Bátiz-Lazo, Northumbria University


  1. Financial inclusion in South Africa - Influencing factors and public policy By Marybeth-Rouse; Bernardo Batiz-Lazo; Santiago Carbo-Valverde
  2. The disruptive strategy of Orange in the payment and banking industry in Africa and its knowledge links with its strategy in the European market By Chick, Essence Ambe; Vialle, Pierre; Whalley, Jason
  3. Destructive Digital Entrepreneurship By Naudé, Wim
  4. Do Search Engines Increase Concentration in Media Markets? By Joan Calzada; Nestor Duch-Brown; Ricard Gil
  5. When Product Markets Become Collective Traps: The Case of Social Media By Leonardo Bursztyn; Benjamin R. Handel; Rafael Jimenez; Christopher Roth
  6. Effects of platforms' entry into own marketplace: Evidence from the mobile application market By Jamison, Mark A.; Tęcza, Jakub; Wang, Peter
  7. Determinants and impact of farmers' participation in social media groups: Evidence from irrigated areas of Kazakhstan and Uzbekistan By Tadjiev, Abdusame; Kurbanov, Zafar; Djanibekov, Nodir; Govind, Ajit; Akramkhanov, Akmal
  8. Boosting Exchange's Market Share: The Impact of No-Fee Trading on Market Quality By Galati, Luca
  9. Stringent COVID-19 government restrictions were associated with a marked increase in Twitter activity in Europe By Millard, Joe; Akimova, Evelina Tamerlanov; Ding, Xuejie; Leasure, Douglas; Zhao, Bo; Mills, Melinda
  10. Is blockchain a new opportunity or too good to be true?: a social representation study of artists in the Korean music industry By Parc, Jimmyn; Kim, Shin Dong
  11. Uncovering digital trace data biases: tracking undercoverage in web tracking data By Bosch, Oriol J.; Sturgis, Patrick; Kuha, Jouni; Revilla, Melanie
  12. Developing science and technology – the role of Big Tech By Damásio, Bruno; Mendonça, Sandro; Silva, Eduardo
  13. Complementarity Effect of Corporate Advertising in a Multimedia World: A Comparison of Online Advertising and Mass Media Advertising By Fujisawa, Chieko; Kasuga, Norihiro
  14. The Welfare Effects of Ad-Blocking By Fengyang Lin; Cristobal Cheyre; Alessandro Acquisti
  15. A Model of Online Misinformation with Endogenous Reputation By Lau, Andy
  16. Credit Card Spending and Borrowing since the Start of the COVID-19 Pandemic By Joanna Stavins
  17. Challenges of Digital Platforms Regulation By Larionova, Marina (Ларионова, Марина); Shelepov, Andrey (Шелепов, Андрей)
  18. How can chatbots effectively comfort humans? Exploring the interaction of emoji and identity cues for perceived emotional support By Liu, Yu-li; Song, Chuling; Huang, Dongpeng; Liu, Sunny Xun; Li, Zhuoyang; Hu, Bo
  19. Does Board Diversity Mitigate Risk? The Effect of Homophily and Social Ties on Risk-Taking in Financial Institutions By Noora Alzayed; Bernardo Batiz-Lazo; Rasol Eskandari
  20. A Framework for Detection, Measurement, and Welfare Analysis of Platform Bias By Imke Reimers; Joel Waldfogel
  21. The Growth, Geography, and Implications of Trade in Digital Products By Viktor Stojkoski; Philipp Koch; Eva Coll; Cesar A. Hidalgo
  22. Long-Term Nexus of Macroeconomic and Financial Fundamentals with Cryptocurrencies By Pourpourides, Panayiotis
  23. How important is mobile broadband latency for total factor productivity growth? By Edquist, Harald
  24. The Digital Transformation of India - A Case Study of Accelerated Mobile Internet By Ashok, Pratiksha
  25. Bitcoin versus S&P 500 Index: Return and Risk Analysis By A. H. Nzokem
  26. Developing a digital platform literacy framework By Ha, Seungyeon; Kim, Seongcheol
  27. Farmers' social media groups for better extension and advisory services By Djanibekov, Nodir; Kurbanov, Zafar; Tadjiev, Abdusame; Govind, Ajit; Akramkhanov, Akmal
  28. Love or politics? Political views regarding the war in Ukraine in an online dating experiment By Beloborodova, Anna
  29. Platform Price Parity Clauses and Consumer Obfuscation By José Ignacio Heresi
  30. Challenges in data management in the agri-food industry. A systematic comparison of permissioned blockchain-based IT business applications By Martínez-Castañeda, Mónica; Feijoo, Claudio
  31. The new online banking consumer. An occasional user or a new full-time customer By Gijón, Covadonga; Fernández-Bonilla, Fernando; Ruíz-Rúa, Aurora
  32. Decentralized finance: Innovations and challenges By Jonathan Chiu; Hanna Yu
  33. Digital Transformation and Financial Inclusion: A Strategic Imperative for Morocco's Banking Sector By Bouchtaoui Mohamed
  34. Conceptualizing Systemically Important Technological Institutions as Too Big to Fail Entities: Moving the Insolvency Goal Post By M. P. Ram Mohan; Sai Muralidhar K
  35. Runs and Flights to Safety: Are Stablecoins the New Money Market Funds? By Kenechukwu E. Anadu; Pablo D. Azar; Catherine Huang; Marco Cipriani; Thomas M. Eisenbach; Gabriele La Spada; Mattia Landoni; Marco Macchiavelli; Antoine Malfroy-Camine; J. Christina Wang
  36. The future of DAOs in finance - in need of legal status By Naudts, Ellen

  1. By: Marybeth-Rouse (University of Johannesburg (South Africa)); Bernardo Batiz-Lazo (Anahuac University (Mexico) and Northumbria University (UK)); Santiago Carbo-Valverde (University of Valencia (Spain))
    Abstract: This paper explores the effectiveness of public policy in increasing financial inclusion. A large data set is used comprising repeat household surveys undertaken over a ten-year period. Contrary to previous results, the paper provides evidence of the strong impact of policy on access to financial services in South Africa. South Africa adopted a formal financial sector consensus model and, together with private sector development, succeeded in increasing access to financial services to the previously unbanked. The findings suggest that between 2005 and 2014, the most significant factors associated with financial inclusion were income, education level and age. Furthermore, those with a tertiary education were 31% more likely to have a bank account than those in the lowest education category. Policies to address the gender gap appear to have had a measure of success as the findings of this study indicate that women were 3.8% more likely to have a bank account than men. The findings further reveal that those from a black ethnic background remain less likely to be banked. Further policy interventions are therefore required.
    Keywords: Economic growth, financial inclusion, financial services, logistic regression, South Africa (SA)
    JEL: D14 G21 O4
    Date: 2023–02
    URL: http://d.repec.org/n?u=RePEc:amj:wpaper:23001&r=pay
  2. By: Chick, Essence Ambe; Vialle, Pierre; Whalley, Jason
    Abstract: This study examines the trajectory of Orange's payment and banking services in Africa and the role of experiential knowledge, resources, and capabilities accumulated in Africa and Europe. The study is carried out through a chronological analysis of annual reports from 2008 to 2021, identifying events in financial innovations. Results show that, from the categorization of Orange's mobile financial and banking services within this study scope, it started from simple and secured mobile payments and expanded to advanced financial services, such as credits and savings to meet the growing demand of its markets. Also, there was a strong synergy between accumulated experiences in Africa and Europe, enabling rapid innovation development at minimal costs. Finally, while the Orange money innovation was disruptive in Africa, as it responded to the needs of the huge lowend market in Africa, which has been deprived of banking service, this was not the case with its transfer to Europe, which is an advanced market with numerous established players.
    Keywords: Orange, Africa, disruption, mobile payment, mobile telecommunications, banking
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277950&r=pay
  3. By: Naudé, Wim (RWTH Aachen University)
    Abstract: This paper provides a selective overview of destructive digital entrepreneurship. The concept is defined and elaborated in the context of the digital revolution post World War II. It is pointed out that the digital revolution was captured by the corporate sector: the incentives for unproductive and destructive entrepreneurship to subvert the digital revolution, was just too strong. Ten subsequent digital dystopias - adverse outcomes resulting from destructive digital entrepreneurship - are discussed. These are digital platform capitalism, tech exceptionalism, the surveillance state, the digital poorhouse, digital divides, the loss of sense-making, digital addiction, digital depression, cybercrime, and awful AI. The paper concludes by exploring how institutional and regulatory frameworks can best reduce the risks from destructive digital entrepreneurship.
    Keywords: digital entrepreneurship, digitalization, dystopia, institutions, surveillance state, digital platforms
    JEL: L26 L21 L53 O40
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp16483&r=pay
  4. By: Joan Calzada; Nestor Duch-Brown; Ricard Gil
    Abstract: Search engines are important access channels to news content of traditional newspapers with Google alone responsible for 35% of online visits to news outlets in the European Union. Yet, the effects of Google Search on market competition and information diversity have received scant attention. Using daily traffic data for 606 news outlets from 15 European countries, we analyze Google’s capacity to influence organic search visits by exploiting exogenous variation in news outlets’ indexation caused by nine core algorithm updates rolled out by Google between 2018 and 2020. We find Google core updates overall reduced the number of keywords (queries) for which news outlets occupy one of the top 10 organic search results positions. Therefore, given the positive impact that the number of top keywords have on traffic this led to the decrease in the overall number of news outlets’ visits. Finally, when studying the impact of Google core updates on media market concentration, we find the three “big” core updates identified in this period reduced market concentration by 1%, but this effect was offset by the rest of the updates. Similarly, in the context of Spain, we find the three “big” core updates reduced monthly keyword concentration by 4%.
    Keywords: search engines, market concentration Google, news sites, Europe
    JEL: D43 L50 L82 M31
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10671&r=pay
  5. By: Leonardo Bursztyn; Benjamin R. Handel; Rafael Jimenez; Christopher Roth
    Abstract: Individuals might experience negative utility from not consuming a popular product. For example, being inactive on social media can lead to social exclusion or not owning luxury brands can be associated with having a low social status. We show that, in the presence of such spillovers to non-users, standard measures that take aggregate consumption as given fail to appropriately capture welfare. We propose a new methodology to measure welfare that accounts for these consumption spillovers, which we apply to estimate the consumer surplus of two popular social media platforms, TikTok and Instagram. In large-scale, incentivized experiments with college students, we show that, while the standard welfare measure suggests a large and positive surplus, our measure accounting for consumption spillovers indicates a negative surplus, with a large share of active users deriving negative utility. We also shed light on the drivers of consumption spillovers to non-users in the case of social media and show that, in this setting, the “fear of missing out” plays an important role. Our framework and estimates highlight the possibility of product market traps, where large shares of consumers are trapped in an inefficient equilibrium and would prefer the product not to exist.
    JEL: D62 D91
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31771&r=pay
  6. By: Jamison, Mark A.; Tęcza, Jakub; Wang, Peter
    Abstract: We study the competition effects of platforms entering their own marketplaces in the context of mobile applications. Using a rich panel dataset of monthly observed applications on the most prominent mobile ecosystems, Apple and Android, we seek to understand how the launch of a new application by the platform owner affects consumers and third-party developers (developers). We find evidence that Apple's efforts have positive effects on developers and encourage innovation. But on the Android platform, introduction of a Google app decreases the number of users for developers' apps. This is likely a substitution effect rather than suppression as developers do not decrease their expansion on the Android platform. In general, we find evidence of platform vertical integration having positive impacts for consumers and developers, and only quite weak evidence of suppression.
    Keywords: Platforms, competition, vertical integration, regulation, self-preferencing
    JEL: L86 L51 K21
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277975&r=pay
  7. By: Tadjiev, Abdusame; Kurbanov, Zafar; Djanibekov, Nodir; Govind, Ajit; Akramkhanov, Akmal
    Abstract: The spread of information and communications technology (ICT) in Central Asia has reached a point where most farmers use smartphones with mobile internet access, providing an opportunity for a cost-effective and timely access to agricultural information and extension services. When extension service provision is poor and does not reflect farmers' immediate needs, farmers often seek other sources of information, such as exchanging knowledge with their peers via social media groups in instant messaging applications (apps). Using the findings of a farm-level survey conducted in 2022 in irrigated areas of Kazakhstan and Uzbekistan, we study behavior and attitudes of farmers in terms of participation in smartphone-based social media groups and its impact of farm performance. We find that in the two country contexts underlying reasons for participation in social groups differ. In Kazakhstan, participation decisions are made by those who have better access to a mobile internet connection, are younger, have agriculture-related education, have a wider communication circle on phone with more than four individuals, cultivate fewer crops, have lands with low soil quality and poor irrigation water access, as well as located in remote areas. In Uzbekistan participation decisions are made by those who see the relevance of mobile internet for their farm business, have own agronomic knowledge, are open to new things, care less about the opinion of other farmers, have higher perception about freedom in crop choice, have off-farm work, as well as poor irrigation water access. These findings suggest farmers' participation in agricultural information-sharing groups (AISG) is influenced less by the type of cultivated crops or farm size, but by their institutional environment. The findings are relevant for developing private strategies and public policies to spread digital technologies among Central Asia's farmers. When introducing smartphone-based digital advisory services policymakers are recommended to start scaling up with younger and more educated farmers who rely on their own knowledge and are more open to embracing new ways of farming and interaction. Farmers' decision-making autonomy will be crucial for converting digital transformation in agriculture into farm benefits.
    Keywords: Extension services, self-help groups, knowledge exchange, partcipation determinants, Central Asia
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:iamodp:201&r=pay
  8. By: Galati, Luca
    Abstract: This paper examines the impact of zero fees on market quality. I examine this issue using a natural experiment in Bitcoin provided by the Binance exchange, which eliminated maker-taker trading fees for market participants in July 2022. I find that while zero fees increase investors' willingness to trade, thereby \textit{prima facie} increasing liquidity, such fees' elimination encourages market makers to widen the bid-ask spread and provide a shallower market depth, which in turn reduces liquidity. Liquidity providers realise gains at the expense of liquidity takers, suggesting the emergence of new forms of financial market misconduct. Notably, despite the removal of trading fees, implicit transaction costs increased for customers. This and the boost in the exchange market share raise concerns about price integrity and investors' protection in the highly unregulated crypto environment, in turn implying that the elimination of maker-taker fees is detrimental to the market.
    Keywords: bitcoin market, cryptocurrency exchange, financial market misconduct, liquidity, market microstructure, zero-fee trading
    JEL: C58 D47 D82 G14 G18
    Date: 2023–10–19
    URL: http://d.repec.org/n?u=RePEc:mol:ecsdps:esdp23091&r=pay
  9. By: Millard, Joe; Akimova, Evelina Tamerlanov; Ding, Xuejie; Leasure, Douglas; Zhao, Bo; Mills, Melinda
    Abstract: The COVID-19 pandemic has had an unprecedented effect on health, well-being, and socioeconomic conditions worldwide. One consequence was changes in social media activity, disruption of schedules, and potentially sleep. We use Twitter data to explore changes in daily and nightly online activity at the onset of the COVID-19 pandemic in 2020. Using a pseudo-random sample of 2, 489 users across 6 cities in the UK (Aberdeen, Belfast, Bristol, Cardiff, London, and Manchester), 4 cities in Italy (Milan, Naples, Rome, and Turin), and 4 cities in Sweden (Göteborg, Malmo, Stockholm, Uppsala), we test the extent to which the COVID-19 pandemic changed online activity in Europe. Using a dataset of ~24 million tweets, we show that tweet activity increased by ~20% in 2020 relative to the previous non-pandemic year of 2019. We further show that tweet activity is associated with the degree of government response to COVID-19, particularly during the day, and that the stringency of restrictions was the strongest predictive component of change in tweet count.
    Date: 2023–10–03
    URL: http://d.repec.org/n?u=RePEc:osf:socarx:g9apk&r=pay
  10. By: Parc, Jimmyn; Kim, Shin Dong
    Abstract: The distribution of the royalty share of online music has been opaque and unbalanced between artists and business actors. Discussion to attain fair distribution structure has been a persistent controversy and yet overlooked mission until today worldwide, including Korea. Realizing the necessity of structural reform, scholars and practitioners have been paying attention to blockchain technology as a potential solution to disintermediation of royalty distribution structure in music industry (Chalmers et al., 2021). The emergence of such technology is deemed as an innovative technology to raise the next paradigm shift by allowing direct interaction and trade among the creators and consumers, disregarding the intermediary trade commissions by business actors (Leja et al., 2017). In other words, blockchain demonstrates a silver lining to gain a just profit share to copyright holders and overcome the decade-old problem of unfair distribution. (...)
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:278011&r=pay
  11. By: Bosch, Oriol J. (The London School of Economics and Political Science); Sturgis, Patrick; Kuha, Jouni; Revilla, Melanie
    Abstract: In the digital age, understanding people’s online behaviours is vital. Digital trace data has emerged as a popular alternative to surveys, many times hailed as the gold standard. This study critically assesses the use of web tracking data to study online media exposure. Specifically, we focus on a critical error source of this type of data, tracking undercoverage: researchers’ failure to capture data from all the devices and browsers that individuals utilize to go online. Using data from Spain, Portugal, and Italy, we explore undercoverage in commercial online panels and simulate biases in online media exposure estimates. The paper shows that tracking undercoverage is highly prevalent when using commercial panels, with more than 70% of participants affected. In addition, the primary determinant of undercoverage is the type and number of devices employed for internet access, rather than individual characteristics and attitudes. Additionally, through a simulation study, it demonstrates that web tracking estimates, both univariate and multivariate, are often substantially biased due to tracking undercoverage. This represent the first empirical evidence demonstrating that web tracking data is, effectively, biased. Methodologically, the paper showcases how survey questions can be used as auxiliary information to identify and simulate web tracking errors.
    Date: 2023–10–08
    URL: http://d.repec.org/n?u=RePEc:osf:socarx:t2dbj&r=pay
  12. By: Damásio, Bruno; Mendonça, Sandro; Silva, Eduardo
    Abstract: This work aims to conduct a scientometric study on the research published by digital platforms known as Big Tech (Amazon, Apple, Facebook, Google and Netflix), giving an overview of the publications' growth, distribution by document's types, research themes and affiliations' profile. All data was retrieved from the Scopus' database, only publications in English and that had an associated DOI (digital object identifier) were considered. Given Big Tech's financial and development strategies, they are present in many markets outside their core activity, enabling them to be at the forefront in innovation. Hence, Big Tech invest in research related activities such as scientific publishing, showing a great surge in their levels of publications from 2015 onwards. "Computer Science" is the most popular journal subject area in which they tend to publish. In the publications' authorship there were no outstanding international partnerships found, with the Big Tech companies' researchers being the main authors, nonetheless a propensity to work with universities was identified. These results help to profile Big Tech's research activity,
    Keywords: Big Tech, research, scientometric, publication, digital platforms
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277951&r=pay
  13. By: Fujisawa, Chieko; Kasuga, Norihiro
    Abstract: This study analyzes the type of advertisements firms pursue when they engage in Cournot competition, especially when goods are complementary in a multimedia environment. Advertisements are classified into search-linked advertisements for online advertisements and TV commercials for mass media advertisements. Which one should the firm choose? This study also analyzes how corporate advertising strategies affect social welfare and provides insight into the role of advertising in multimedia. A firm's advertisement selection depends on the degree of complementarity and differentiation between advertisements. This analysis also focuses on the advertising strategies of duopoly firms in an extended model, such as hardware firms that are complementary to software products. In that case, both choose mass media advertising when the differentiation is moderate, and this choice raises both aggregate surplus and producer surplus. When advertising complementarity is high for both mass media and online advertising, firms choose different types of advertisements, but social welfare is low. This result is one of the considerations of a firm's sales strategy, how on using advertisements to increase demand and maximize profits.
    Keywords: Online media advertising, Mass media advertising, Complementary relationship, Advertising Strategy, Duopoly model
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277960&r=pay
  14. By: Fengyang Lin (Cornell Bowers CIS, Cornell University, Ithaca, NY 14853); Cristobal Cheyre (Cornell Bowers CIS, Cornell University, Gates Hall 210, Ithaca, NY 14853); Alessandro Acquisti (Heinz College, Carnegie Mellon University, 5000 Forbes Ave, HBH 2105C, Pittsburgh, PA 15213)
    Abstract: Concerns regarding online tracking and excessive advertising have led to a marked increase in the adoption of Ad-Blocking tools. We conduct a field experiment to study users’ valuation of Ad-Blockers, and to study how exposing or shielding users from online advertising influences their online experiences, their attitudes towards online advertising, their valuation of ad-blocking tools, and their future usage of such tools. We find that for users currently using an ad-blocker, uninstalling them leads to a deterioration in their online experiences and lower satisfaction with recent purchases. For users that were not using Ad-Blockers, installing one led to fewer reported regrets with purchases, an improvement in subjective well-being, and a less positive view of online advertising. In terms of users’ valuation of Ad-Blockers, we observe a great degree of heterogeneity. Some users are not willing to uninstall their Ad-Blocker even if offered large payments (>$100). Conversely, a similar number of users are not willing to install an Ad-Blocker even if offered large payments. However, most users are willing to install/uninstall an Ad-Blocker in exchange for moderate payments (
    Keywords: Online Advertising; Ad-Blockers
    JEL: D12 I31 L82 L86 M37
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:net:wpaper:2305&r=pay
  15. By: Lau, Andy (University of Warwick)
    Abstract: Misinformation dissemination in social media has emerged as a critical contemporary issue. This paper augments existing models of online misinformation by incorporating endogenous reputation dynamics. In contrast to prior research, reputation plays a pivotal role in shaping agents Bayesian-Nash equilibrium strategy through two key avenues : (i) the sharer’s reputation positively impacts the likelihood of sharing, and (ii) agents with higher initial reputations are less willing to share compared to their counterparts with lower initial reputations. Furthermore, this paper provides insights into the formation of individuals’ networks on social media. Surprisingly, individuals with high reputations are not universally favoured as network connections. Additionally, the paper examines relevant comparative statics, including the importance of interactions, and the implications of homophily. This research establishes a foundation for understanding the dynamics of reputation-based information sharing and network structure.
    Keywords: Information sharing ; misinformation ; reputation ; network ; social media JEL classifications: C72 ; D83 ; D85
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:wrk:wrkesp:59&r=pay
  16. By: Joanna Stavins
    Abstract: Consumers improved their financial health early during the COVID-19 pandemic, but credit card revolving and delinquencies have been rising since 2021, in terms of both the share of accounts and average balances. Financial stress is especially high among lower-income cardholders, whose credit card revolving and delinquencies have risen faster than those of other income cohorts. This is consistent with excess savings being depleted faster among lower-income cohorts. The rising financial stress suggests a weakening in consumption as utilization rates, revolving amounts, and delinquencies all continue to rise. Balances on delinquent accounts held by lower-income consumers are approaching their credit limits. With utilization rates of 80 to 90 percent on average, these cardholders might have to cut their spending. An unemployment spell might cause further distress for these individuals and potentially others who are not currently delinquent.
    Keywords: credit card utilization; delinquencies; COVID-19
    JEL: D31 E21 G51
    Date: 2023–10–19
    URL: http://d.repec.org/n?u=RePEc:fip:fedbcq:97187&r=pay
  17. By: Larionova, Marina (Ларионова, Марина) (The Russian Presidential Academy of National Economy and Public Administration); Shelepov, Andrey (Шелепов, Андрей) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The working paper studies the problems of digital platforms regulation related to consumer protection, countering anti-competitive practices, designing preventive (ex-ante) regulations, interdepartmental and international cooperation. The study is highly relevant since digital platforms act as private regulators of their ecosystems. They set rules for users, shape the business environment, control the implementation of rules and the behavior of ecosystem participants. Thus, digital platforms control the behavior of citizens and businesses, while they (until recently) have not been controlled by the state and society. The working paper aims to analyze the main challenges that states face when shaping the new and extending the existing regulatory practices to digital platforms’ activities. Based on the results of the study, the authors assess the main regulatory challenges related to consumer protection, countering the monopoly behavior of developing platforms, developing ex-ante measures, establishing cooperation between various government bodies and international cooperation. The authors conclude with recommendations for improving digital platforms regulation, taking into account the identified challenges.
    Keywords: digital economy, digital platforms, ex-ante regulation, Antimonopoly regulation, BRICS
    JEL: F52 F53 O38
    Date: 2023–07–24
    URL: http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220242&r=pay
  18. By: Liu, Yu-li; Song, Chuling; Huang, Dongpeng; Liu, Sunny Xun; Li, Zhuoyang; Hu, Bo
    Abstract: Chatbots have been increasingly used to provide emotional support to people who are under stress. Based on the Computers Are Social Actors (CASA) paradigm, this study investigates how the identity cues (human vs. chatbot) and emoji usage influence the effect of using chatbots to obtain emotional support among Hong Kong people. Through a 2*2 online experiment with 494 valid participants, the results showed that the interaction between emoji use and identity cues significantly affected the social presence. Only in the condition of human cues, using emojis in the message could significantly increase social presence, which enhanced participants' perceived warmth and perceived competence with regards to the communication partner. Moreover, these social perceptions could further increase perceived emotional support when human identity cues were present. Theoretical and practical implications are discussed.
    Keywords: chatbots, emotional support, identity cues, emojis, social presence, CASA paradigm
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277999&r=pay
  19. By: Noora Alzayed (University of Bahrain, Accounting Department, Kingdom of Bahrain); Bernardo Batiz-Lazo (Universidad Anahuac Mexico, Business and Economics School (Mexico); Newcastle Business School, Northumbria University (United Kingdom)); Rasol Eskandari (Salford Business School, University of Salford, Salford (United Kingdom))
    Abstract: This study examines the effect of board diversity and social networks on risk in US financial institutions for the period from 2010 to 2018. The econometric strategy involved structural equations models, where risk as dependent variable was measured by two latent variables and a total of five measures of risk. Several aspects of board diversity were utilised including gender, social, experience and educational backgrounds. Results suggest that age and gender diversity had a minor effect to mitigate risk of financial institutions. National diversity had a significant and positive effect while appearing strongest when compared with other variables. Two education measures had mixed results while suggesting that financial education is associated with greater risk. Also, social networks have a significant effect on risk-taking especially on market risk. These results imply that financial institutions need to have a sensible level of board diversity in all aspects.
    Keywords: Board diversity, financial institutions, risk taking, social networks, structural equation model.
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:amj:wpaper:23006:n:fenwp006&r=pay
  20. By: Imke Reimers; Joel Waldfogel
    Abstract: Regulators are responding to growing platform power with curbs on platforms' potentially biased exercise of power, creating urgent needs for both a workable definition of platform bias and ways to detect and measure it. We develop a simple equilibrium framework in which consumers choose among ranked alternatives, while the platform chooses product display ranks based on product characteristics and prices. We define the platform's ranks to be biased if they deliver outcomes that lie below the frontier that maximizes a weighted sum of seller and consumer surplus. This framework leads to two bias testing approaches, which we compare using Monte Carlo simulations, as well as data from Amazon, Expedia, and Spotify. We then illustrate the use of our structural framework directly, producing estimates of both platform bias and its welfare cost. The EU's Digital Services Act's provision for researcher data access would allow easy implementation of our approach in contexts important to policy makers.
    JEL: L40 L81
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31766&r=pay
  21. By: Viktor Stojkoski; Philipp Koch; Eva Coll; Cesar A. Hidalgo
    Abstract: Despite global efforts to harmonize international trade statistics, our understanding about trade in digital products and its implications remains elusive. Here, we study five key aspects of trade in digital products by introducing a novel dataset on the exports and imports of digital products. First, we show that compared to trade in physical goods, the origin of digital products exports is more spatially concentrated. Second, we show that between 2016 and 2021 trade in digital products grew faster than physical trade, at an annualized growth rate of 20% compared to 6% for physical trade. Third, we show that trade in digital products is large enough to partly offset some important trade balance estimates, like the physical trade deficit of the United States. Fourth, we show that countries that have decoupled economic growth from greenhouse gas emissions have larger and faster growing exports in digital product sectors. Finally, we add digital products to measures of economic complexity, showing that digital products tend to rank high in terms of sophistication contributing positively to the complexity of digital exporters. These findings provide a novel lens to understand the impact of the digital sector in the evolving geography of global trade.
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2310.02253&r=pay
  22. By: Pourpourides, Panayiotis (Cardiff Business School)
    Abstract: In this empirical study I examine the influence of macroeconomic and financial fundamentals on cryptocurrency metrics over the long term. Through both parametric and non-parametric estimation methods, I establish that the relative value of the US dollar and the price of gold consistently exert significant impact on cryptocurrency metrics. Analyzing daily and monthly data reveals a robust statistical correlation, resulting in adverse effects on cryptocurrency prices, market capitalizations, and Bitcoin’s hash rate. These findings along with distinct features of Bitcoin resonate with the concept of Bitcoin as a digital asset analogous to physical gold, assuming a role similar to a substitute for the latter. Comparatively, Bitcoin’s hash rate demonstrates heightened market exposure when contrasted with its price counterpart. While the value of the US dollar exerts negative effects on both gold and Bitcoin, the latter’s response is notably greater. Moreover, the relationships of gold and Bitcoin with indicators such as the federal funds rate and the S&P 500 exhibit divergent patterns. While the US dollar primarily exerts downward pressure on Bitcoin’s price and the gold price primarily influences the hash rate, over time the significance of both factors, though dominant, gradually diminishes.
    Keywords: Bitcoin; Cryptocurrencies; Blockchain; Macroeconomic and Financial Fundamentals.
    JEL: E44 G10 G12 G19
    Date: 2023–09
    URL: http://d.repec.org/n?u=RePEc:cdf:wpaper:2023/23&r=pay
  23. By: Edquist, Harald
    Abstract: This paper investigates the relationship between the log change in mobile broadband latency and total factor productivity (TFP) growth based on data for 130 countries. It finds that there is a strong correlation between TFP growth and one year lag of latency growth once controlling for the growth of labor and capital services in OECD countries. The interpretation of the findings is that a 10 percentage points decrease in the growth of latency in period t-1 is associated with an increase of 0.3 percentage points in TFP growth. The findings are in accordance with the framework of general purpose technologies that suggests that the impact of new technologies often appear with a lag. Moreover, no relationship is found for non-OECD countries, which suggest that it is only OECD countries that are able to take advantage of the benefits of lower latency. One possible explanation could be that OECD countries have reached a higher maturity in digitalization and automation in production processes and thus are able to take advantage of the benefits of lower latency.
    Keywords: ICT, Productivity, Latency, Mobile broadband networks, Economic development
    JEL: D24 O33 O47
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277954&r=pay
  24. By: Ashok, Pratiksha
    Abstract: India- the land where tradition meets modernization, where local meets global, a land that has changed its image from an agrarian world to an equal competitor in the digital sector, a society where digitalization has not ripped traditional roots but uplifted small businesses and budding entrepreneurs. In 2016, 16.5% (214.5 million) of the Indian population had access to mobile internet. In 2017, 18.2% of Indians (236 million) had access to mobile internet, an increase of approximately 22 million people having access to mobile internet in a year. The Indian Telecom Sector has emerged as one of the critical components of economic growth required for overall socio-economic development of the country as there is a positive correlation between the penetration of mobile services and internet on the growth of GDP of a country. So, what are changed in 2016, contributing to the acceleration of mobile internet usage in India? The various factors that contributed and the impact on the consumers are the focus of this research. The factors include the rise of mobile service providers, digitalization, government policies and COVID-19, resulting in increased healthy competition, access to infrastructure and subsidies, a secure financial system and resilience in the face of a global health crisis. (...)
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277944&r=pay
  25. By: A. H. Nzokem
    Abstract: The S&P 500 index is considered the most popular trading instrument in financial markets. With the rise of cryptocurrencies over the past years, Bitcoin has also grown in popularity and adoption. The paper aims to analyze the daily return distribution of the Bitcoin and S&P 500 index and assess their tail probabilities through two financial risk measures. As a methodology, We use Bitcoin and S&P 500 Index daily return data to fit The seven-parameter General Tempered Stable (GTS) distribution using the advanced Fast Fractional Fourier transform (FRFT) scheme developed by combining the Fast Fractional Fourier (FRFT) algorithm and the 12-point rule Composite Newton-Cotes Quadrature. The findings show that peakedness is the main characteristic of the S&P 500 return distribution, whereas heavy-tailedness is the main characteristic of the Bitcoin return distribution. The GTS distribution shows that $80.05\%$ of S&P 500 returns are within $-1.06\%$ and $1.23\%$ against only $40.32\%$ of Bitcoin returns. At a risk level ($\alpha$), the severity of the loss ($AVaR_{\alpha}(X)$) on the left side of the distribution is larger than the severity of the profit ($AVaR_{1-\alpha}(X)$) on the right side of the distribution. Compared to the S&P 500 index, Bitcoin has $39.73\%$ more prevalence to produce high daily returns (more than $1.23\%$ or less than $-1.06\%$). The severity analysis shows that at a risk level ($\alpha$) the average value-at-risk ($AVaR(X)$) of the bitcoin returns at one significant figure is four times larger than that of the S&P 500 index returns at the same risk.
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:arx:papers:2310.02436&r=pay
  26. By: Ha, Seungyeon; Kim, Seongcheol
    Abstract: This article introduces the innovative concept of platform literacy, specifically within the context of digital platforms. In today's digital economy, where digital platforms serve as essential tools in people's lives and form the core of the digital ecosystem, the ability to effectively utilize these platforms becomes crucial. This study systematically examines existing literature on digital platforms and digital literacy to establish a conceptual foundation for assessing an individual's platform literacy. Drawing upon insights from the digital literacy framework, we propose a platform literacy framework that can be applied in practical settings. Methodologically, we conducted an extensive review of 735 research papers on digital literacy to gather definitions and frameworks. As a result, we identified seven core constructs and three main proficiencies that constitute the platform literacy framework. Moreover, to adapt the framework to the various digital platform context, we categorized it into fixed attributes and variable attributes. This article contributes to the growing body of knowledge on digital literacy by offering a comprehensive framework for understanding platform literacy within the digital platform landscape.
    Keywords: platform literacy, digital literacy, digital platform, digital platform literacy framework
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277969&r=pay
  27. By: Djanibekov, Nodir; Kurbanov, Zafar; Tadjiev, Abdusame; Govind, Ajit; Akramkhanov, Akmal
    Abstract: The spread of information and communications technology (ICT) in Central Asia has reached a point where most farmers use smartphones with mobile internet access providing an opportunity for a low-cost and timely access to agricultural information and advisory services. When extension service is poor and does not cater to the farmers' needs, farmers seek other sources of information, such as exchanging knowledge with their peers and engaging in social media groups using instant messaging applications (apps) such as Telegram and WhatsApp. Analysis of a farm-level survey conducted in 2022 in Kazakhstan and Uzbekistan, suggests that farmers' participation in online groups for information exchange is influenced by the enabling environment rather than by the type of cultivated crops or farm size. The findings are relevant for developing private sector strategies and public policies to spread digital technologies among Central Asia's farmers with a holistic plan for a digital transformation. When introducing smartphone- or web-based digital technologies, policymakers are recommended to start scaling up with younger and more technologically-savvy farmers who on the one hand rely on their own knowledge but on the other hand are more open to embracing new ways of farming and interaction. Decision-making autonomy is an important factor to facilitate digital transformation in agriculture in the Central Asian context.
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:iamopb:46&r=pay
  28. By: Beloborodova, Anna
    Abstract: How polarized is Russian society regarding the war in Ukraine? Political views have an impact on various behaviors, including relationship formation. In this paper I study the extent of polarization in the Russian society regrading the war in Ukraine by conducting a field experiment on a large Russian dating site and collecting data on more than 3, 000 profile evaluations. The findings reveal sizable penalties for those who express pro-war or anti-war positions on their dating profiles, suggesting considerable levels of polarization in the Russian society regarding the war. Age of the online dating site users is the most divisive factor, as younger individuals are less likely to approach pro-war profiles but not anti-war profiles, while older individuals are less likely to respond positively to profiles indicating anti-war views but not pro-war views.
    Keywords: affective polarization; relationship formation; assortative mating; field experiment; war in Ukraine
    JEL: C93 D1 J12
    Date: 2023–10–13
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:118862&r=pay
  29. By: José Ignacio Heresi
    Abstract: Several antitrust authorities have investigated platform price parity clauses around the world. I analyze the impact of these clauses when platforms design a search environment for sellers and buyers to interact. In a model where platforms choose the unitary search cost faced by consumers, I show when it is profitable for platforms to obfuscate consumers through high search costs. Then, I show that price parity clauses, when exogenously given, can increase or reduce obfuscation, prices, and consumer surplus. Finally, when price parity clauses are endogenous, they are only observed in equilibrium if they hurt consumers. JEL Classifications: D83, L42, L81. Key words: consumer search, obfuscation, platforms, price parity clauses.
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:edj:ceauch:350&r=pay
  30. By: Martínez-Castañeda, Mónica; Feijoo, Claudio
    Abstract: This article includes a bibliographic study to identify, evaluate, and interpret existing research regarding the effectiveness of blockchain technology applications in the field of agricultural production condition accreditation. Drawing from the review, and to illustrate the technical architecture of the blockchain-based logistics tracking system, the article focuses on the management of raw data as a system parameter that will determine the advantages and limitations of existing business solutions. Additionally, considerations are incorporated into the system construction to reduce information asymmetry and increase the business power of producers when using public databases. Basically, the bibliographic compilation and analysis are aimed at improving two aspects: the veracity and relevance of the production data collected in the blockchain systems, and offering tentative handling methods that increase the producers' power of control over the systems by using data and verifications already completed for the administration for other purposes.
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:278000&r=pay
  31. By: Gijón, Covadonga; Fernández-Bonilla, Fernando; Ruíz-Rúa, Aurora
    Abstract: This paper studies the determinants of individuals' propensity to use electronic banking and the impact of the pandemic on that. We found that the variables with the greatest significant weight for participation are the variables of the Technology Acceptance Model (TAM). Furthermore, we observe changes in e-banking after the pandemic due to sociodemographic variables with increasing relevance of gender and income variables, indicating that the gender and economic digital divide has increased as well. The educational level variable has decreased, reducing the educational gap in the analysis of the digital divide. However, the most relevant variables are digital skills and frequency of internet use, which have a much stronger influence on e-banking adoption. Finally, based on the findings presented above and below, some policy recommendations are provided.
    Keywords: traditional banking, online banking, consumers, survey data, econometric models
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:itse23:277964&r=pay
  32. By: Jonathan Chiu; Hanna Yu
    Abstract: Decentralized finance surged in popularity around 2020. We explore its value and limitations and highlight some potential regulatory concerns.
    Keywords: Digital currencies and fintech; Financial stability; Payment clearing and settlement systems
    JEL: G1 G2
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:bca:bocsan:23-15&r=pay
  33. By: Bouchtaoui Mohamed (Faculty of Law, Economics and Social Sciences, Salé, Mohammed V University, Rabat, Morocco.)
    Abstract: This paper studies the current state of the Moroccan banking system in the context of digital economy development, to establish the benchmarks and needs for banking regulation, and to study the potential possibilities of digitalization of relations and transactions in the banking sector in the mechanism of implementing prudential rules. Digital transformation in the banking industry is associated with obstacles that seem to hinder the smooth implementation of digital approaches. This issue has not been adequately addressed in the current academic literature. The main purpose of this qualitative exploratory study is to identify the main perceived obstacles to digital transformation in the Moroccan commercial banking sector from a point of view and to analyse them accordingly. However, challenges such as low financial penetration and mismatches with costumer needs persists. The digitalization of financial services emerges as a promosing avenue to address these issues, significantly increasing financial access and inclusion in Morocco, in line with trends observed in other African Nations.
    Abstract: Cet article étudie l'état actuel du système bancaire marocain dans le contexte du développement de l'économie digitale, afin d'établir les repères et les besoins en matière de réglementation bancaire, et d'étudier les possibilités potentielles d'une digitalisation des relations et des transactions dans le secteur bancaire dans le cadre de la mise en œuvre des règles prudentielles. La transformation digitale dans l'industrie bancaire est associée à des obstacles qui semblent entraver la mise en œuvre fluide des approches numériques. Cette question n'a pas été adéquatement abordée dans la littérature académique actuelle. L'objectif principal de cette étude exploratoire qualitative est d'identifier les principaux obstacles perçus à la transformation digitale dans le secteur bancaire marocain d'un point de vue analytique. Cependant, des défis tels que la faible pénétration financière et les discordances avec les besoins des clients persistent. La digitalisation des services financiers émerge comme une avenue prometteuse pour résoudre ces problèmes, en augmentant significativement l'accès aux services financiers et en favorisant l'inclusion financière au Maroc, en conformité avec les tendances observées dans d'autres pays africains.
    Keywords: Moroccan banking sector, digital economy, digital transformation process, financial services., African Scientific Journal
    Date: 2023–09–26
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-04218990&r=pay
  34. By: M. P. Ram Mohan; Sai Muralidhar K
    Abstract: The concept of Too Big To Fail (TBTF) has, for the longest time, been associated with systemically important banks, insurance companies and other financial institutions. The emergence of Big Tech companies, which permeates global markets, challenges the traditional notions of TBTF. Big Tech companies growing size and interconnectedness to the global economy have led to concerns emerging in the domains of antitrust law, data privacy laws, and financial stability. A key facet of financial stability regulation is the development of robust insolvency resolution frameworks to deal with potential failures of TBTF companies. The paper analyses whether Big Tech companies pose systemic risks to the financial system and the broader economy and, consequently, if they are TBTF, should there be special insolvency resolution frameworks akin to other systemically important institutions. The systemic risks Big Techs pose today may be substantially higher than traditional TBTF firms due to their deep interconnectedness with financial institutions. The paper explores the concept of Systemically Important Technological Institutions and the challenges in designating them as TBTF.
    Date: 2023–10–13
    URL: http://d.repec.org/n?u=RePEc:iim:iimawp:14705&r=pay
  35. By: Kenechukwu E. Anadu; Pablo D. Azar; Catherine Huang; Marco Cipriani; Thomas M. Eisenbach; Gabriele La Spada; Mattia Landoni; Marco Macchiavelli; Antoine Malfroy-Camine; J. Christina Wang
    Abstract: Stablecoins and money market funds both seek to provide investors with safe, money-like assets but are vulnerable to runs in times of stress. In this paper, we investigate similarities and differences between the two, comparing investor behavior during the stablecoin runs of 2022 and 2023 to investor behavior during the money market fund runs of 2008 and 2020. We document that, similar to money market fund investors, stablecoin investors engage in flight-to-safety, with net flows from riskier to safer stablecoins during run periods. However, whereas in money market funds run risk has historically materialized only in prime funds, in stablecoins, runs have occurred in different stablecoin types across the 2022 and 2023 runs. We also show that, similar to intrafamily flows in money market funds, stablecoin flows tend to be within blockchains. Finally, we estimate a discrete “break-the-buck” threshold of $0.99 for stablecoins, below which redemptions accelerate.
    Keywords: stablecoins; money market mutual funds; financial stability; crypto assets; runs; liquidity transformation
    JEL: G10 G20 G23
    Date: 2023–08–24
    URL: http://d.repec.org/n?u=RePEc:fip:fedbqu:97034&r=pay
  36. By: Naudts, Ellen
    Abstract: Despite the crypto-market crash in the spring of 2022 and the collapse of FTX in November 2022, decentralised finance (DeFi) proponents are still predicting that DeFi may soon go mainstream. As well as the increasing involvement of regulated financial institutions in the DeFi area, the incipient presence of regulatory, supervisory and oversight frameworks may lead to more mainstream acceptance of DeFi. Many DeFi projects are structured in the form of a decentralised autonomous organisation (DAO), a virtual organisation built and run on code and blockchain technology. As this new DAO corporate structure has benefits appropriate for the era of digitalisation and decentralisation, the number of DAOs is growing. However, most countries around the globe do not yet have in place a specific legal regime for DAOs. Until now, DAOs have been operating outside of regulatory financial frameworks, even though they may perform functions that are similar to regulated financial institutions or market infrastructures. The legal characterisation of DAOs depends on national laws that may or may not apply, depending on how the DAO itself is actually set up and on court judgements. This paper introduces the DAO structure and how it relates to other methods of organisation in finance. The paper lists use cases and describes the benefits and drawbacks of the DAO structure, taking a closer look at (inter)national regulatory frameworks, guidelines and recommendations in order to discuss whether, how and to what extent DAOs might comply. A policy position on the desirability and conditions under which DAOs could bring efficient, safe and stable innovations to the financial sector depends on the specificities of the individual DAOs, the potential applicable regulatory frameworks and the continuously evolving technical developments, as well as (inter)national guidelines and recommendations. This paper proposes that the establishment of regulatory frameworks on crypto-assets and crypto-asset s JEL Classification: F38, F39, G23, G32, K22, L22, L31
    Keywords: crypto, DAO, DeFi, financing policy, international financial policy
    Date: 2023–10
    URL: http://d.repec.org/n?u=RePEc:ecb:ecbops:2023331&r=pay

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