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on Payment Systems and Financial Technology |
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Issue of 2024‒06‒24
25 papers chosen by |
| By: | Ozili, Peterson K |
| Abstract: | This article presents a discussion on what a central bank digital currency (CBDC) can achieve in African countries and what a central bank digital currency may not achieve in African countries. The study shows that a central bank digital currency can achieve the following. CBDC can become a monetary policy tool; it can reduce the size of the informal economy; it can increase financial inclusion; it can increase digital financial literacy; it can reduce the circulation of counterfeit paper money; it can deepen existing payments system; it can improve social programmes and targeted welfare; it will increase transaction monitoring and surveillance; it can address tax evasion and increase tax revenue in African countries. The study also shows that a central bank digital currency may not completely replace cash in African countries; the issuance and use of CBDC won’t make African countries earn a ‘developed country’ status; CBDC adoption may not stop institutional corruption; CBDC adoption will not stop illicit activities in African countries; and CBDC adoption may not reduce the level of poverty in African countries. |
| Keywords: | central bank digital currency, CBDC, Africa, poverty, financial inclusion, monetary policy, remittance, informal economy, welfare, corruption. |
| JEL: | E52 E58 E59 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120966&r= |
| By: | Tut, DANIEL |
| Abstract: | What factors drive the valuation of Bitcoin and other crypto-assets? We use a novel measure and show that [1] Sentiments in Bitcoin drive the price action and have a material effect on returns [2] Sentiments in Bitcoin drive the valuation of other cryptocurrency assets [3] Sentiments in Bitcoin drive returns in other cryptocurrency assets. Our results show that optimistic sentiments in Bitcoin drive overvaluation in Bitcoin itself and other cryptocurrency assets. Our results support the notion that liquidity measures are salient factors in price discovery. |
| Keywords: | Valuation, Cryptocurrencies, Bitcoin, Digital Assets, sentiments, speculation |
| JEL: | D8 D84 G21 G24 G3 G32 G39 |
| Date: | 2024–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120866&r= |
| By: | Ozili, Peterson K |
| Abstract: | Several firms have expressed an interest to develop a stablecoin in Nigeria called the compliant-Nigerian-Naira (cNGN). The purpose of this article is to explore the features, benefits, and challenges of issuing a stablecoin in Nigeria known as the cNGN stablecoin. The study also compares the proposed cNGN with the eNaira central bank digital currency and offer several differences that are worth noting. The study shows that the proposed cNGN stablecoin offers many benefits. They include enabling faster payments, ensuring seamless cross-border payments, and increasing participation in the financial system for those who are already banked. The study also identifies some challenges of the proposed cNGN stablecoin. The study concludes by stating that the long-term success of the cNGN will be guaranteed if majority of Nigerians embrace it and if cNGN issuers collaborate with regulators to ensure that the cNGN is designed in a way that achieves financial stability objectives, transparency, and consumer protection. |
| Keywords: | Nigeria, stablecoin, cNGN, blockchain, eNaira, CBDC, compliant Nigerian Naira |
| JEL: | E58 E59 G02 G21 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120801&r= |
| By: | Daniel Winkler; Christian Hotz-Behofsits; Nils Wl\"omert; Dominik Papies; Jura Liaukonyte |
| Abstract: | The digital age has significantly changed how music is consumed, promoted, and monetized. Social media platforms like TikTok are playing a pivotal role in this transformation. This shift has sparked a debate within the music industry: While some stakeholders see social media platforms like TikTok as opportunities to boost songs to viral status, others raise concerns about potential cannibalization effects, fearing that such exposure might reduce revenue from streaming services like Spotify. In this paper, we evaluate the effect of a song's presence - or absence - on social media on its demand on music streaming services using a quasi-natural experiment: Universal Music Group's (UMG) - one of "The Big 3" record labels - decision to remove its entire content library from TikTok in February 2024. We use representative samples covering close to 50% of the US and 94% of the German streaming markets, employing a difference-in-differences approach to compare the streaming consumption of songs that were removed from TikTok with those that were not. We find that UMG's removal of music from TikTok led to a 2-3% increase in streams on audio platforms for affected songs, indicating substitution effects. However, this average treatment effect masks significant heterogeneity: older songs and songs with less promotional support elsewhere saw a decrease in streaming consumption, suggesting that TikTok helps consumers discover or rediscover content that is not top of mind for consumers. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.14999&r= |
| By: | Nicola Amendola; Luis Araujo; Leo Ferraris |
| Abstract: | This paper compares digital and physical currency, focusing on a single intrinsic difference: digital, unlike physical, currency allows the authorities to trace the monetary flows in and out of the accounts. We show that this technological advance in record-keeping can be used to reward active balances relative to idle balances. This helps achieve efficiency in a wide range of circumstances. |
| Keywords: | Cash, Digital Currency, Optimal Monetary Policy |
| JEL: | E40 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:mib:wpaper:537&r= |
| By: | Tamilina, Larysa; Hryniv, Dzvenyslava; Hulko, Pavlo |
| Abstract: | This research focuses on examining why young social media users might become trapped in a "social bubble" defined as seeking information that supports only one’s existing beliefs. We use a method called Qualitative Comparative Analysis to identify various combinations of factors that either contribute to or prevent the formation of these bubbles. Our findings reveal three combinations that tend to create social bubbles. All three involve young people's tendency to conform to dominant opinions and how often they expose themselves to diverse viewpoints. We have also identified one combination that leads to the opposite outcome, where young individuals reject the idea of being in a social bubble. Specifically, such persons are characterized by rarely conforming to dominant opinions, engaging in frequent debates, and regularly exposing themselves to diverse perspectives, even if they use only a few social media platforms. These results suggest that universities can play an important role in shaping social media behavior by teaching students to seek out diverse viewpoints and critically evaluate them to form their own independent opinions. |
| Keywords: | Social media, Social bubbles, QCQ, Young users, Ukraine |
| JEL: | C1 C5 C80 |
| Date: | 2024–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:121084&r= |
| By: | Ms. Prachi Mishra; Alvaro Ortiz; Tomasa Rodrigo; Mr. Antonio Spilimbergo; Sirenia Vazquez |
| Abstract: | The share of e-commerce in total credit-card spending boomed during Covid in Spain. In particular, women, youth, and urban consumers used e-commerce proportionally more during the pandemic, especially for services. Using a unique proprietary dataset on credit card transactions, we test conjectures about consumers’ behavior (based on fear, hoarding, or learning) during Covid. Overall, e-commerce share reverted to its pre-Covid trend as the pandemic waned. However, some consumers with lower pre-Covid e-commerce usage tend to permanently use more e-commerce, supporting the conjecture of “learning by locking” for these individuals. |
| Keywords: | e-commerce; Covid; learning |
| Date: | 2024–05–24 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/107&r= |
| By: | Qing Guo; Siyu Chen; Xiangquan Zeng |
| Abstract: | The proliferation of internet technology has catalyzed the rapid development of digital finance, significantly impacting the optimization of resource allocation in China and exerting a substantial and enduring influence on the structure of employment and income distribution. This research utilizes data sourced from the Chinese General Social Survey and the Digital Financial Inclusion Index to scrutinize the influence of digital finance on the gender wage disparity in China. The findings reveal that digital finance reduces the gender wage gap, and this conclusion remains robust after addressing endogeneity problem using instrumental variable methods. Further analysis of the underlying mechanisms indicates that digital finance facilitates female entrepreneurship by lowering financing barriers, thereby promoting employment opportunities for women and also empowering them to negotiate higher wages. Specially, digital finance enhances women's bargaining power within domestic settings, therefore exerts a positive influence on the wages of women. Sub-sample regressions demonstrate that women from economically disadvantaged backgrounds, with lower human capital, benefit more from digital finance, underscoring its inclusive nature. This study provides policy evidence for empowering vulnerable groups to increase their wages and addressing the persistent issue of gender income disparity in the labor market. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.15486&r= |
| By: | Masataka Mori; Juan M. Sanchez |
| Abstract: | An analysis examines the continuing rise in U.S. credit card delinquency through the share of people late on their payments and the share of debt that’s past due. |
| Keywords: | credit card delinquencies |
| Date: | 2024–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:98284&r= |
| By: | Kaichen Zhang; Zixuan Yuan; Hui Xiong |
| Abstract: | In recent years, Optimized Cost Per Click (OCPC) and Optimized Cost Per Mille (OCPM) have emerged as the most widely adopted pricing models in the online advertising industry. However, the existing literature has yet to identify the specific conditions under which these models outperform traditional pricing models like Cost Per Click (CPC) and Cost Per Action (CPA). To fill the gap, this paper builds an economic model that compares OCPC with CPC and CPA theoretically, which incorporates out-site scenarios and outside options as two key factors. Our analysis reveals that OCPC can effectively replace CPA by tackling the problem of advertisers strategically manipulating conversion reporting in out-site scenarios where conversions occur outside the advertising platform. Furthermore, OCPC exhibits the potential to surpass CPC in platform payoffs by providing higher advertiser payoffs and consequently attracting more advertisers. However, if advertisers have less competitive outside options and consistently stay in the focal platform, the platform may achieve higher payoffs using CPC. Our findings deliver valuable insights for online advertising platforms in selecting optimal pricing models, and provide recommendations for further enhancing their payoffs. To the best of our knowledge, this is the first study to analyze OCPC from an economic perspective. Moreover, our analysis can be applied to the OCPM model as well. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.14279&r= |
| By: | Yu-Ting Chiang; Mick Dueholm |
| Abstract: | Households carrying credit card balances tend to be middle income, but the ratio of credit card debt to income is highest among those who earn the least. |
| Keywords: | credit cards |
| Date: | 2024–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:98285&r= |
| By: | Nicolas Oderbolz; Beatrix Marosv\"olgyi; Matthias Hafner |
| Abstract: | This paper examines the economic and security implications of Proof-of-Stake (POS) designs, providing a survey of POS design choices and their underlying economic principles in prominent POS-blockchains. The paper argues that POS-blockchains are essentially platforms that connect three groups of agents: users, validators, and investors. To meet the needs of these groups, blockchains must balance trade-offs between security, user adoption, and investment into the protocol. We focus on the security aspect and identify two different strategies: increasing the quality of validators (static security) vs. increasing the quantity of stakes (dynamic security). We argue that quality comes at the cost of quantity, identifying a trade-off between the two strategies when designing POS systems. We test our qualitative findings using panel analysis on collected data. The analysis indicates that enhancing the quality of the validator set through security measures like slashing and minimum staking amounts may decrease dynamic security. Further, the analysis reveals a strategic divergence among blockchains, highlighting the absence of a single, universally optimal staking design solution. The optimal design hinges upon a platform's specific objectives and its developmental stage. This research compels blockchain developers to meticulously assess the trade-offs outlined in this paper when developing their staking designs. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.14617&r= |
| By: | Rubing Li; Arun Sundararajan |
| Abstract: | The emergence of the branded recommerce channel - digitally enabled and branded marketplaces that facilitate purchasing pre-owned items directly from a manufacturer's e-commerce site - leads to new variants of classic IS and economic questions relating to secondary markets. Such branded recommerce is increasingly platform-enabled, creating opportunities for greater sustainability and stronger brand experience control but posing a greater risk of cannibalization of the sales of new items. We model the effects that the sales of pre-owned items have on market segmentation and product durability choices for a monopolist facing heterogeneous customers, contrasting outcomes when the trade of pre-owned goods takes place through a third-party marketplace with outcomes under branded recommerce. We show that the direct revenue benefits of branded recommerce are not their primary source of value to the monopolist, and rather, there are three indirect effects that alter profits and sustainability. Product durability increases, a seller finds it optimal to forgo marketplace fees altogether, and there are greater seller incentives to lower the quality uncertainty associated with pre-owned items. We establish these results for a simple two-period model as well as developing a new infinite horizon model with overlapping generations. Our paper sheds new insight into this emerging digital channel phenomenon, underscoring the importance of recommerce platforms in aligning seller profits with sustainability goals. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.09023&r= |
| By: | Ma, Qingguo; He, Yijin; Tan, Yulin; Cheng, Lu; Wang, Manlin |
| Abstract: | Technological advancements drive the development of payment methods. This review provides a comprehensive examination of the pervasive influence of payment methods on consumer behavior, referred to as payment method effect. We first examine the multifaceted implications of card payments on consumer spending behaviors, post-consumption behaviors, and broader general behaviors, while also analyzing potential moderators including product type and consumer characteristics. Our review unveils the intricate psychological mechanisms underlying the payment method effect, including reduced pain of paying, primed hedonic mindset, biased perceptions of available resources. Looking forward, we underscore several avenues for future research, particularly in exploring the emerging mobile payment effects, designing practical interventions to mitigate dark sides of payment method effects, and investigating cross-cultural heterogeneity in payment method effect. Our review contributes not only to the theoretical advancement of consumer psychology but also to the development of effective strategies for promoting responsible consumer behavior in an increasingly digitized era. |
| Date: | 2024–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:3fphk&r= |
| By: | Broader, Jacquelyn |
| Abstract: | In the United States, public transit agencies are increasingly growing interested in deploying open-loop payment systems for public transit fare payments. This interest is based on the benefits these systems can offer, from faster boarding times to the potential of attracting more riders. Open-loop fare payment systems’ popularity is evidenced by the growing number of American public transit agencies who have deployed them; most of whom (63%) are located in California. The overlap between public transit riders who are both transit-dependent and financially excluded (i.e., have no or limited access to financial services) creates the opportunity for public transit agencies deploying open-loop payment systems to leverage these systems to increase financial service access for transit dependent, financially excluded riders. Individuals who are both transit-dependent and financially excluded are typically low-income, identify as part of a racial or ethnic minority group, immigrants, and/or women. As a result of these demographic characteristics, this work focuses on these populations. Additionally, financial inclusion, especially for these populations, is a critical step for economic and social mobility in the United States. This research focuses on California and explores how to leverage public transit agency deployment of open-loop payment systems to increase riders' financial service access. This research is comprised of a literature review, expert interviews (n=11), population needs mapping, and partnership proposals. In general, public transit agencies can strategically work with financial sector-based partners who focus on serving the transit agencies' priority rider groups. |
| Keywords: | Social and Behavioral Sciences, Public transit, automatic fare collection, transportation disadvantaged persons, low income groups, transportation equity |
| Date: | 2024–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt88v9c0wm&r= |
| By: | Shawn Berry |
| Abstract: | The persistence of lying by some consumers in their online posts of experiences with businesses is problematic, and taints the global pool of information that is used for decision making by people that assume they are true accounts of experiences. This study is based on data from my dissertation about fake online Google reviews of restaurants (Berry, 2024), and leverages an instrument that quantifies the trust of people. The findings are based on a sample of n=351, and provide a general proxy for lying in online reviews, and sketch out the characteristics of a typical person that has the propensity to be untruthful. A predictive model of posting untrue online reviews is constructed. The findings have wider implications for the study and monitoring of deceptive behavior, including the propagation of misinformation, and a means of quantifying the potential for antisocial behavior as measured by the trust of people instrument in Berry (2024). Directions for future research and limitations are also discussed. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.12743&r= |
| By: | Jingyang Wu; Xinyi Zhang; Fangyixuan Huang; Haochen Zhou; Rohtiash Chandra |
| Abstract: | There has been much interest in accurate cryptocurrency price forecast models by investors and researchers. Deep Learning models are prominent machine learning techniques that have transformed various fields and have shown potential for finance and economics. Although various deep learning models have been explored for cryptocurrency price forecasting, it is not clear which models are suitable due to high market volatility. In this study, we review the literature about deep learning for cryptocurrency price forecasting and evaluate novel deep learning models for cryptocurrency stock price prediction. Our deep learning models include variants of long short-term memory (LSTM) recurrent neural networks, variants of convolutional neural networks (CNNs), and the Transformer model. We evaluate univariate and multivariate approaches for multi-step ahead predicting of cryptocurrencies close-price. Our results show that the univariate LSTM model variants perform best for cryptocurrency predictions. We also carry out volatility analysis on the four cryptocurrencies which reveals significant fluctuations in their prices throughout the COVID-19 pandemic. Additionally, we investigate the prediction accuracy of two scenarios identified by different training sets for the models. First, we use the pre-COVID-19 datasets to model cryptocurrency close-price forecasting during the early period of COVID-19. Secondly, we utilise data from the COVID-19 period to predict prices for 2023 to 2024. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.11431&r= |
| By: | Damane, Moeti; Ho, Sin-Yu |
| Abstract: | We examine the impact of financial inclusion of Sub-Saharan Africa (SSA) small and medium-sized enterprises (SMEs) on financial stability. Results show that financial inclusion of SMEs negatively affects stability in SSA countries, and the negative link is even stronger as levels of financial stability increase across countries. Our findings are consistent with the theory of excessive credit expansion or extreme financial inclusion theory, suggesting that to safely promote SME financial inclusion and foster financial sector stability, efforts should be directed toward improving banking sector risk mitigation efforts, financial sector supervision and strengthening coordination among regional financial sector regulators. |
| Keywords: | Sub-Saharan Africa; Financial Inclusion; Financial Stability; Small and Medium sized Enterprises, Fixed Effect Model; Quantile Regression |
| JEL: | G00 G2 G21 G28 |
| Date: | 2024–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:121093&r= |
| By: | Fabien Leurent (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | A line ride-sharing service is supplied along a given roadway path by an operator that matches Users (riders) and Agents (drivers), under specific protocol that involves price schedule on both the U and A sides, waiting policy on either side and transaction times. The resulting time and money items add up over trip legs, yielding trip time and money cost depending on the service role, A or U, compared to Non-commitment, called role N for Neutral. The article brings about a traffic model of people involvement in the service. Service conditions of frequency φ and average number of users per car run ω are key factors of the time and money features of the alternative roles A, U and N. Individual choice of role is modeled as a rational behavior of minimizing the generalized cost depending on the individual Value-of-Time (VoT). Aggregation over trip-makers according to the statistical distribution of VoT yields the respective role flows (y_A, y_U, y_N), which in turn determine the macroscopic factors (φ, ω). Traffic equilibrium is defined as a balance condition between the "supplied flows" and the "demanded flows" of the three roles. A computational scheme is provided, with graphical interpretation in the (y_A, y_U) plane as well as in the (φ, ω) plane. A numerical experiment is conducted, showing that two alternative configurations can arise at equilibrium: either {A, U, N} with less wealthy Agents driving wealthier Users, or {U, A, N} where less wealthy Users are driven by wealthier Agents: in both cases the Neutral role attracts the upper range of the VoT distribution. |
| Keywords: | bi-sided platform, traffic equilibrium, multi-sided equilibrium, equilibration algorithm, Ride-sharing service |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04579457&r= |
| By: | Amberg, Niklas (Research Department, Central Bank of Sweden); Jacobson, Tor (Research Department, Central Bank of Sweden); Qi, Yingjie (Copenhagen Business School) |
| Abstract: | Buyers and suppliers have diverging interests about trade-credit maturities: buyers desire long payment periods as a source of cheap funding, while suppliers prefer swift payments to avoid locking up scarce liquidity in idle assets. A fast-growing financial product innovation—supply-chain finance (SCF)—offers to resolve these diverging interests, but its net effect on suppliers is a priori unclear. We study the effects of SCF programs on suppliers using unique invoice-level data from a large Swedish bank. We find that SCF programs relax suppliers’ liquidity constraints and thereby enable them to grow their sales, employment, and investments. |
| Keywords: | Trade credit; supply-chain finance; reverse factoring; financial constraints |
| JEL: | D22 G21 G32 |
| Date: | 2024–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:rbnkwp:0435&r= |
| By: | Michael Grubb (Boston College); Darragh Kelly (Google); Jeroen Niebohr (London School of Economics); Matthew Osborne (University of Toronto); Jonathan Shaw (UK Financial Conduct Authority) |
| Abstract: | At-scale field experiments at major UK banks show that automatic enrollment into “just-in-time” text message alerts reduces unarranged overdraft and unpaid item charges 17–19% and arranged overdraft charges 4–8%, implying annual market-wide savings of £170–240 million. Incremental benefits from additional “early warning” alerts, triggered by low account balances are not statistically significant, although economically significant effects are not ruled out. Prior to the experiments, over half of overdrafting could have been avoided by using lower-cost liquidity available in savings and credit card accounts (FCA, 2018c). Alerts help consumers achieve less than half of these potential savings. |
| Keywords: | overdraft fees, early warning alerts, liquidity |
| JEL: | D14 D18 G21 G28 G51 |
| Date: | 2024–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:1073&r= |
| By: | Bahl, Utsav |
| Abstract: | Scholars from both sides of the Atlantic have noted a perceived divergence in the objectives and practice of competition policy in the US and the EU. This paper investigates the reasons behind such a divergence focusing on ideology, legal systems, lobbying, and foreign policy. The most compelling reasons behind the differences we see in competition policy across the US and the EU is due to the US’ more laissez-fair approach to the economy and, as a byproduct, its legal system. With a particular emphasis placed on Big Tech, it is noted that differences in competition policy are exacerbated in this industry in large part due to the relative inefficacy of Big Tech to lobby the EU in comparison to their relative success in the US. This paper ends by discussing how foreign policy aims have recently begun to shape competition policy in both the US and the EU and the potential implications this could have going into the future. |
| Date: | 2024–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:6vzqp&r= |
| By: | Rasmussen, Nina |
| Abstract: | Data-driven streamers like Netflix and Amazon Prime Video have expanded into the European screen landscape with a significant appetite for locally produced content. These players leverage advanced data analytics to gain deep customer insights, but they prefer to keep a lid on their algorithmic operations. This article examines how screen workers interact with streaming data despite widespread secrecy. Drawing on interviews and an interface ethnography, I explore the ways these workers access, sense, generate and resist streaming data throughout their creative process. As such, the article provides a framework for understanding the subtle and sometimes contradictory ways that screen workers engage with such data practices. I also demonstrate how researchers can circumvent and lower barriers to access in an industry marked by data secrecy. As a result, this article contributes to discussions about the datafication of cultural production, and it does so with novel insights from the European screen context. |
| Keywords: | algorithms; Amazon; big data; creative labour; creative methods; datafication; Netflix; production cultures; streaming; AH/L503873/1 |
| JEL: | R14 J01 |
| Date: | 2024–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122660&r= |
| By: | Hongyang Yang; Boyu Zhang; Neng Wang; Cheng Guo; Xiaoli Zhang; Likun Lin; Junlin Wang; Tianyu Zhou; Mao Guan; Runjia Zhang; Christina Dan Wang |
| Abstract: | As financial institutions and professionals increasingly incorporate Large Language Models (LLMs) into their workflows, substantial barriers, including proprietary data and specialized knowledge, persist between the finance sector and the AI community. These challenges impede the AI community's ability to enhance financial tasks effectively. Acknowledging financial analysis's critical role, we aim to devise financial-specialized LLM-based toolchains and democratize access to them through open-source initiatives, promoting wider AI adoption in financial decision-making. In this paper, we introduce FinRobot, a novel open-source AI agent platform supporting multiple financially specialized AI agents, each powered by LLM. Specifically, the platform consists of four major layers: 1) the Financial AI Agents layer that formulates Financial Chain-of-Thought (CoT) by breaking sophisticated financial problems down into logical sequences; 2) the Financial LLM Algorithms layer dynamically configures appropriate model application strategies for specific tasks; 3) the LLMOps and DataOps layer produces accurate models by applying training/fine-tuning techniques and using task-relevant data; 4) the Multi-source LLM Foundation Models layer that integrates various LLMs and enables the above layers to access them directly. Finally, FinRobot provides hands-on for both professional-grade analysts and laypersons to utilize powerful AI techniques for advanced financial analysis. We open-source FinRobot at \url{https://github.com/AI4Finance-Found ation/FinRobot}. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.14767&r= |
| By: | Adam, Martin; Reinelt, Annika; Roethke, Konstantin |
| Abstract: | To motivate visitors to engage with websites, e‐tailers widely employ monetary rewards (e.g., vouchers, discounts) in their website designs. With advances in user interface technologies, many e‐tailers have started to offer gamified monetary reward designs (MRDs), which require visitors to earn the monetary reward by playing a game, rather than simply claiming the reward. However, little is known about whether and why gamified MRDs engage visitors compared to their non‐gamified counterpart. Even less is known about the effectiveness of gamified MRDs when providing certain or chance‐based rewards, in that visitors do or do not know what reward they will gain for successfully performing in the game. Drawing on cognitive evaluation theory, we investigate gamified MRDs with certain or chance‐based rewards and contrast them to non‐gamified MRDs with certain rewards in user registration systems. Our results from a multi‐method approach encompassing the complementary features of a randomised field experiment (N = 651) and a randomised online experiment (N = 330) demonstrate differential effects of the three investigated MRDs on user registration. Visitors encountering either type of gamified MRD are more likely to register than those encountering a non‐gamified MRD. Moreover, gamified MRDs with chance‐based rewards have the highest likelihood of user registrations. We also show that MRDs have distinct indirect effects on user registration via anticipated experiences of competence and sensation. Overall, the paper offers theoretical insights and practical guidance on how and why gamified MRDs are effective for e‐tailers. |
| Date: | 2024–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:145527&r= |