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on Payment Systems and Financial Technology |
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Issue of 2020‒06‒29
28 papers chosen by |
| By: | Franklin Allen; Xian Gu; Julapa Jagtiani |
| Abstract: | The intersection of finance and technology, known as fintech, has resulted in the dramatic growth of innovations and has changed the entire financial landscape. While fintech has a critical role to play in democratizing credit access to the unbanked and thin-file consumers around the globe, those consumers who are currently well served also turn to fintech for faster services and greater transparency. Fintech, particularly the blockchain, has the potential to be disruptive to financial systems and intermediation. Our aim in this paper is to provide a comprehensive fintech literature survey with relevant research studies and policy discussion around the various aspects of fintech. The topics include marketplace and peer-to-peer lending, credit scoring, alternative data, distributed ledger technologies, blockchain, smart contracts, cryptocurrencies and initial coin offerings, central bank digital currency, robo-advising, quantitative investment and trading strategies, cybersecurity, identity theft, cloud computing, use of big data and artificial intelligence and machine learning, identity and fraud detection, anti-money laundering, Know Your Customers, natural language processing, regtech, insuretech, sandboxes, and fintech regulations. |
| Keywords: | fintech; marketplace lending; P2P; alternative data; DLT; blockchain; robo advisor; regtech; insuretech; cryptocurrencies; ICOs; CBDC; cloud computing; AML; KYC; NLP; fintech regulations |
| JEL: | G21 G28 G18 L21 |
| Date: | 2020–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:88120&r=all |
| By: | Zura Kakushadze; Jim Kyung-Soo Liew |
| Abstract: | We discuss the pros of adopting government-issued digital currencies as well as a supranational digital iCurrency. One such pro is to get rid of paper money (and coinage), a ubiquitous medium for spreading germs, as highlighted by the recent coronavirus outbreak. We set forth three policy recommendations for adapting mobile devices as new digital wallets, regulatory oversight of sovereign digital currencies and user data protection, and a supranational digital iCurrency for facilitating international digital monetary linkages. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2005.10154&r=all |
| By: | Auer, Raphael; Claessens, Stijn |
| Abstract: | Cryptocurrencies are often thought to operate out of the reach of national regulation, but in fact their valuations, transaction volumes and user bases react substantially to news about regulatory actions. The impact depends on the specific regulatory category to which the news relates: events related to general bans on cryptocurrencies or to their treatment under securities law have the greatest adverse effect, followed by news on combating money laundering and the financing of terrorism, and on restricting the interoperability of cryptocurrencies with regulated markets. News pointing to the establishment of specific legal frameworks tailored to cryptocurrencies and initial coin offerings coincides with strong market gains. These results suggest that cryptocurrency markets rely on regulated financial institutions to operate and that these markets are segmented across jurisdictions. |
| Keywords: | cryptocurrency; Digital Currencies; Event studies; regulation; valuations |
| JEL: | E42 E51 F31 G12 G28 G32 G38 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14602&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas Biekpe (Cape Town, South Africa); Danny Cassimon (University of Antwerp, Belgium) |
| Abstract: | The present research extends Lashitew, van Tulder and Liasse (2019, RP) in order to understand the greater diffusion of mobile money innovations in Africa. To make this assessment, a comparative analysis is engaged between sampled African countries and the corresponding sampled developing countries. Three main types of predictor groups are used for the study, namely: demand, supply and macro-level factors. The empirical evidence is based on Tobit regressions. The tested hypothesis is confirmed because from a comparative analysis between African-specific estimates and those of the sampled countries, not all factors driving mobile money innovations in Africa are apparent in the findings of Lashitew et al. (2019). An extended analysis is also performed to take on board the concern of multicollinearity from which, the best estimators from the study are derived. Comparative findings from correlation analysis show that an African specificity is largely traceable to the ‘unique mobile subscription rate’ variable. An in-depth empirical analysis further confirms an African specificity in the outcome variables (especially in the mobile used to send/receive money) which, may be traceable to informal sector variables not documented in Lashitew et al. (2019). Scholarly and policy implications are discussed. |
| Keywords: | Mobile money; technology diffusion; financial inclusion; inclusive innovation |
| JEL: | D10 D14 D31 D60 O30 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:20/032&r=all |
| By: | Geoffrey Goodell; Hazem Danny Al-Nakib; Paolo Tasca |
| Abstract: | The current crisis, at the time of writing, has had a profound impact on the financial world, introducing the need for creative approaches to revitalising the economy at the micro level as well as the macro level. In this informal analysis and design proposal, we describe how infrastructure for digital assets can serve as a useful monetary and fiscal policy tool and an enabler of existing tools in the future, particularly during crises, while aligning the trajectory of financial technology innovation toward a brighter future. We propose an approach to digital currency that would allow people without banking relationships to transact electronically and privately, including both internet purchases and point-of-sale purchases that are required to be cashless. We also propose an approach to digital currency that would allow for more efficient and transparent clearing and settlement, implementation of monetary and fiscal policy, and management of systemic risk. The digital currency could be implemented as central bank digital currency (CBDC), or it could be issued by the government and collateralised by public funds or Treasury assets. Our proposed architecture allows both manifestations and would be operated by banks and other money services businesses, operating within a framework overseen by government regulators. We argue that now is the time for action to undertake development of such a system, not only because of the current crisis but also in anticipation of future crises resulting from geopolitical risks, the continued globalisation of the digital economy, and the changing value and risks that technology brings. |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2006.03023&r=all |
| By: | Belke, Ansgar; Beretta, Edoardo |
| Abstract: | The following short article aims at presenting some relevant (though less discussed) aspects of concern about introducing central bank digital currency – no matter if intended as a substitute or complement to cash. For example, concrete referral to potential effects such as bank runs and capital flight is also made. Its coexistence with limits for cash payments already existing in several European countries is analytically questioned too. What are also the structural characteristics making paper money and coins (which are the only means of payment directly issued by the central bank) still irreplaceable? These among other topics (like the effects of COVID-19 pandemic for limits for cash payments) will be dealt with following a discursive, yet rigorously macro-economically corroborated approach. |
| Keywords: | Bargeldobergrenzen; digitales Notenbankgeld; Zahlungsmittel. |
| JEL: | E51 E58 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:100932&r=all |
| By: | Sriram Darbha; Rakesh Arora |
| Abstract: | Privacy is a key aspect of a potential central bank digital currency system. We outline different technical choices to enact various privacy models while complying with the appropriate regulations. We develop a framework to evaluate privacy models and list key risks and trade-offs in privacy design. |
| Keywords: | Central bank research; Digital currencies and fintech |
| JEL: | E4 E42 E5 E51 O3 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:20-9&r=all |
| By: | John Miedema; Cyrus Minwalla; Martine Warren; Dinesh Shah |
| Abstract: | If the Bank of Canada issues a central bank digital currency, the technology should be designed for universal access. |
| Keywords: | Central bank research; Digital currencies and fintech |
| JEL: | E4 E41 O3 O31 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:20-10&r=all |
| By: | David Ghedalia (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Francesco Leotta (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy); Massimo Mecella (Department of Computer, Control and Management Engineering Antonio Ruberti (DIAG), University of Rome La Sapienza, Rome, Italy) |
| Abstract: | The recent advances in communication and computation technologies and the explosion of the Internet-of-Things (IoT) are the fundamental building blocks of the smart manufacturing approach. Here, "things" are the main actors of production processes and supply chains, i.e., involved machinery and companies accessible through their so called digital twins -DTs. DTs are faithful representations of physical entities in the virtual world, which, by exposing services, can be employed to modify, monitor and predict the state of the wrapped objects. The interest in smart manufacturing from industry and institutions led the development of commercial and open source frameworks to implement DTs. In this paper, we will discuss how these frameworks can be employed in consistent architectures for smart manufacturing aiming at coordinating DTs in order to pursue specic production goals. Creation-Date: 2020 |
| Keywords: | Industry 4.0 ; digital twins ; smart manufacturing ; development framework ; software |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2020-02&r=all |
| By: | Cyrus Minwalla |
| Abstract: | Security is an important element in ensuring public confidence in a central bank digital currency (CBDC). This note highlights the required security properties of a CBDC system and the challenges encountered with existing solutions, should the Bank of Canada choose to issue one. |
| Keywords: | Central bank research; Digital currencies and fintech |
| JEL: | E4 E42 E5 E51 O3 O31 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:20-11&r=all |
| By: | Tsutomu Watanabe (Graduate School of Economics, University of Tokyo); Yuki Omori (Nowcast Inc.; M.A. candidate, Graduate School of Information Science and Technology, University of Tokyo) |
| Abstract: | The spread of novel coronavirus (COVID-19) infections has led to substantial changes in consumption patterns. While demand for services that involve face-to-face contact has decreased sharply, online consumption of goods and services, such as through e-commerce, is increasing. The aim of this study is to investigate whether online consumption will continue to increase even after COVID-19 subsides, using credit card transaction data. Online consumption requires upfront costs, which have been regarded as one of the factors inhibiting the diffusion of online consumption. However, if many consumers made such upfront investments due to the coronavirus pandemic, they would have no reason to return to offline consumption after the pandemic has ended, and high levels of online consumption should continue. Our main findings are as follows. First, the main group responsible for the increase in online consumption are consumers who were already familiar with online consumption before the pandemic and purchased goods and service both online and offline. These consumers increased the share of online spending in their spending overall and/or stopped offline consumption completely and switched to online consumption only. Second, some consumers that had never used the internet for purchases before started to use the internet for their consumption activities due to COVID-19. However, the share of consumers making this switch was not very different from the trend before the crisis. Third, by age group, the switch to online consumption was more pronounced among youngsters than seniors. These findings suggest that it is not the case that during the pandemic a large number of consumers made the upfront investment necessary to switch to online consumption, so a certain portion of the increase in online consumption is likely to fall away again as COVID-19 subsides. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:upd:utmpwp:023&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon) |
| Abstract: | This paper examines the joint effects of mobile phone technology, knowledge creation and diffusion on inclusive human development in 49 sub-Saharan African (SSA) countries. The empirical evidence is based on Tobit regressions for the period 2000-2012. The net effects of interactions between the mobile phone, knowledge creation and diffusion variables are positive indicating that the combined effects of these variables improve inclusive human development in SSA countries. Further analysis dividing the dataset into a number of fundamental characteristics based on economic, legal, religion and political stability associated with African economies show that mobile phone penetration and associated innovation in SSA improve inclusive human development irrespective of the country’s level of income, legal origins, religious orientation and the state of the nation. The pupil-teacher ratio exerts a negative influence on the outcome variable which is favourable for inclusive human development because higher ratios denote lower education quality since more pupils are accommodated by fewer teachers. The study contributes to innovation diffusion theory and economic development literature. |
| Keywords: | Mobile phones; Innovation, Knowledge diffusion; Inclusive human development; Africa |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:20/033&r=all |
| By: | Adjovu, Charles; Fabian, Ewa |
| Abstract: | Licensing is one of the essential means of exploiting the monetary value of a musical work, and yet it is an area fraught with many issues and transactional costs which make it a difficult process for individuals and organizations. Many issues in music licensing arise from the legal complexity (e.g., national and international copyright law), business complexity (authentication, tracking, accounting, etc.), value web complexity (transparency of relationships among stakeholders), and technical complexity (e.g., establishing a global repertoire database for music, sufficient metadata standards) of working with music. Then, in addition to these issues, there are specific transactional costs (identification, negotiation, monitoring, and enforcement) associated with the licensing process. To mitigate the complexity and transactional costs associated with music and the licensing process, researchers and technologists have been investigating how new technologies and design models from the Web3 space, such as blockchain, linked data and Ricardian Contracts, can automate processes to reduce complexity, speed up payments, improve tracking, and provide other benefits in the music industry. In our report, we make our own attempt to reduce the complexity and transactional costs in the licensing process by developing an automated music license. In doing so, we first conducted a literature review scoping the intersection of music complexity and Web3 technologies to provide background and context to automating music licensing. Then we developed the Practical Tokenized Drafting (PTD) method, a set of core principles and practices for drafting Ricardian Contracts that interact with Web3 technologies (RC-Web3 Templates), and the Tokenized Music License (TML), an RC-Web3 Template standard form for music licensing on the OpenLaw platform. Both the PTD and TML can be adapted to meet the needs of music industry stakeholders and provide guidance to legal practitioners in drafting RC-Web3 Templates. |
| Date: | 2020–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:lawarx:kfjxa&r=all |
| By: | Michel Beine (Department of Economics and Management, Université du Luxembourg); Luisito Bertinelli (Department of Economics and Management, Université du Luxembourg); Rana Cömertpay (Department of Economics and Management, Université du Luxembourg); Anastasia Litina (University of Ionannina, Greece); Jean-François Maystadt (University of Antwerp, Belgium, Lancaster University Management School, UK) |
| Abstract: | Based on geolocalized mobile phone calls data, we study the mobility of refugees in Turkey. We employ a gravity model to estimate the determinants of refugee movements across 26 regions in 2017. To benchmark our findings, we estimate the same model for the mobility of individuals with a non-refugee status. Beyond the standard determinants such as the levels of income at origin, at destination and distances across regions, we find that networks, provision of humanitarian aid and asylum grants are important determinants of refugee mobility. Our paper deepens our understanding on how forcibly displaced people may respond to economic, social and political factors in their location decision. |
| Keywords: | Refugee Mobility, Gravity Model of Migration, Forced Displacement, Mobile Phone Data, News Media, Poisson Pseudo-Maximum Likelihood |
| JEL: | J6 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:20-13&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon) |
| Abstract: | This paper examines the joint effects of mobile phone technology, knowledge creation and diffusion on inclusive human development in 49 sub-Saharan African (SSA) countries. The empirical evidence is based on Tobit regressions for the period 2000-2012. The net effects of interactions between the mobile phone, knowledge creation and diffusion variables are positive indicating that the combined effects of these variables improve inclusive human development in SSA countries. Further analysis dividing the dataset into a number of fundamental characteristics based on economic, legal, religion and political stability associated with African economies show that mobile phone penetration and associated innovation in SSA improve inclusive human development irrespective of the country’s level of income, legal origins, religious orientation and the state of the nation. The pupil-teacher ratio exerts a negative influence on the outcome variable which is favourable for inclusive human development because higher ratios denote lower education quality since more pupils are accommodated by fewer teachers. The study contributes to innovation diffusion theory and economic development literature. |
| Keywords: | Mobile phones; Innovation, Knowledge diffusion; Inclusive human development; Africa |
| JEL: | G20 I10 I32 O40 O55 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:20/033&r=all |
| By: | Apoorv Gupta; Jacopo Ponticelli; Andrea Tesei |
| Abstract: | We study the effect of information on technology adoption and productivity in agriculture. Our empirical strategy exploits the expansion of the mobile phone network in previously uncovered areas of rural India coupled with the availability of call centers for agricultural advice. We measure information on agricultural practices by analyzing the content of 2.5 million phone calls made by farmers to one of India's leading call centers for agricultural advice. We find that areas receiving coverage from new towers and with no language barriers between farmers and advisers answering their calls experience higher adoption of high yielding varieties of seeds and other complementary inputs, as well as higher increase in agricultural productivity. Our estimates indicate that information frictions can explain around 25 percent of the agricultural productivity gap between the most productive and the least productive areas in our sample. |
| JEL: | O33 O4 Q16 Q55 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27192&r=all |
| By: | MOTOHASHI Kazuyuki; ZHU Chen |
| Abstract: | Internet platforms in China (BAT: Baidu, Alibaba, Tencent) are receiving growing attention in terms of their technological competitiveness compared to US players (GAFA: Google, Amazon, Facebook, Apple). Using text information of patent information in China and the US, this study analyzes Baidu's technological catching up process with Google. Based on document-level embedding results, we conduct cluster analysis and generate new indicators of technology cumulativeness and impact based on neighbor patents in the content space. The results reveal that Baidu follows a trend of US rather than Chinese technology which suggests Baidu is aggressively seeking to catch up with US players in the process of its technological development. At the same time, the impact index of Baidu patents increases over time, reflecting its upgrading of technological competitiveness. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:20045&r=all |
| By: | Frimpong, Jemima A.; Helleringer, Stephane |
| Abstract: | Contact tracing is a key approach for controlling the COVID–19 pandemic. Traditional tracing methods might however miss a number of contacts between infected and susceptible persons. Digital contact tracing apps have been developed to assist health departments in notifying individuals of recent exposures to SARS-CoV-2. These apps are used in several countries throughout the world, and some US states have either launched or are planning to launch such apps. The potential effects of digital contact tracing apps depend however on their widespread adoption. Most investigations of the determinants of adoption among potential users have focused on issues related to privacy features (e.g., who can access data, whether location is recorded) and the accuracy of the app in notifying users of exposures to SARS-CoV-2 (e.g., false notifications). In this paper, we investigate whether financial incentives might help further accelerate the adoption of digital contact tracing apps. We conducted a discrete choice experiment with an online sample of 394 US residents aged 18–69 years old. We asked participants to make a series of choices between two hypothetical versions of a digital contact tracing app characterized by several randomly selected attributes, including varying levels of financial cost or incentives to download. In this experiment, financial incentives were more than twice as important in the decision-making process about DCT app downloads than privacy and accuracy. In order to accelerate adoption, US States planning to launch digital contact tracing apps should consider offering financial incentives for download to potential users. |
| Date: | 2020–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:9vp7x&r=all |
| By: | Asongu, Simplice; Odhiambo, Nicholas |
| Abstract: | The research assesses how information and communication technology (ICT) modulates the effect of foreign direct investment (FDI) on economic growth dynamics in 25 countries in Sub-Saharan Africa for the period 1980-2014. The employed economic growth dynamics areGross Domestic Product (GDP) growth, real GDP and GDP per capita while ICT is measured by mobile phone penetration and internet penetration. The empirical evidence is based on the Generalised Method of Moments. The study finds that both internet penetration and mobile phone penetration overwhelmingly modulate FDI to induce overall positive net effects on all three economic growth dynamics. Moreover, the positive net effects are consistently more apparent in internet-centric regressions compared to “mobile phone”-oriented specifications. In the light of negative interactive effects, net effects are decomposed to provide thresholds at which ICT policy variables should be complemented with other policy initiatives in order to engender favorable outcomes on economic growth dynamics. Practical and theoretical implications are discussed. |
| Keywords: | Economic Output; Foreign Investment; Information Technology; Sub-Saharan Africa |
| JEL: | E23 F21 F30 L96 O55 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101136&r=all |
| By: | Bruno Vétel (CEREGE - CEntre de REcherche en GEstion - EA 1722 - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - Université de Poitiers - Université de Poitiers - ULR - Université de La Rochelle) |
| Abstract: | We sketch a history of the genesis of the first online game emulators, and then we point out the fundamental characteristics that have been found in each of them for nearly 20 years. Notably the hacking of the "client" software and the wide distribution of the emulator code. We then describe in more detail what the online adaptation of video games does to emulators, the socio-technical conditions of their design and then their uses. |
| Abstract: | Nous esquissons un historique de la genèse des premiers émulateurs de jeux en ligne, puis nous pointons les caractères fondamentaux que l'on retrouve dans chacun d'eux depuis près de 20 ans. Notamment le détournement du logiciel « client » et la diffusion à large échelle du code de l'émulateur. Nous décrivons ensuite plus en détail ce que l'adaptation en ligne des jeux vidéo fait aux émulateurs, aux conditions sociotechniques de leur conception puis de leur usages. |
| Keywords: | emulator,digital labor,illegal activities,Online games,Jeux en ligne,émulateur,design,travail informel,activités illégales,Conception logicielle |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02570733&r=all |
| By: | Michael Ewens; Ramana Nanda; Christopher T. Stanton |
| Abstract: | We use individual-level data to shed light on the evolution of founder-CEO compensation in venture capital-backed startups. We document that having a tangible, marketable product is a fundamental milestone in CEOs' compensation contracts, marking the point at which liquid cash compensation begins to increase significantly — well before a liquidity event. “Product market fit” also coincides with key human capital in the startup becoming more replaceable, marking an apparent transition in the firm's lifecycle from ‘differentiation’ to ‘standardization’. Although substantial increases in cash compensation for founder-CEOs in response to milestones improves the certainty equivalent of attempting entrepreneurship relative to flat pay, low cash compensation in the very early years can still deter entrepreneurship for potential entrants. We characterize the types of individuals most likely to be impacted by this constraint and hence those whose ideas are unlikely to be commercialized through VC-backed entrepreneurship. |
| JEL: | G24 G3 G32 J24 J3 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27296&r=all |
| By: | Haruki Seitani; Ben Westmore |
| Abstract: | Technological change is transforming Ireland’s economic structures, leading to new jobs and innovative products that benefit consumers. Adoption of new technologies by businesses has been high relative to many other OECD economies, but it has been uneven across industries and the impact on productivity growth in most firms has been modest so far. |
| Keywords: | active labour market policies, competition policy, data security policies, future of work, gig economy, platform workers, product market regulations, productivity growth, residential mobility, skills, technological diffusion |
| JEL: | A11 J24 J61 J63 J83 I28 I31 O33 O38 O52 |
| Date: | 2020–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1610-en&r=all |
| By: | Carvalho, Vasco M; Hansen, Stephen; Ortiz, Álvaro; Ramón García, Juan; Rodrigo, Tomasa; Rodriguez Mora, Sevi; Ruiz, José |
| Abstract: | We exploit high-frequency/high-resolution transaction data from BBVA, the second-largest bank in Spain, to analyse the dynamics of expenditure in Spain during the ongoing COVID-19 pandemic. Our main dataset consists of the universe of BBVA-mediated sales transactions from both credit cards and point-of-sales terminals, and totals 1.4 billion individual transactions since 2019. This dataset provides a unique opportunity to study the impact of the ongoing crisis in Spain--and the policies put in place to control it--on a daily basis. We find little shift in expenditure prior to the national lockdown, but then immediate, very large, and sustained expenditure reductions thereafter. Transaction metadata also allows us to study variation in these reductions across geography, sectors, and mode of sale (e.g. online/offline). We conclude that transaction data captures many salient patterns in how an economy reacts to shocks in real time, which makes its potential value to policy makers and researchers high. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14642&r=all |
| By: | Ivaldi, Marc; Zhang, Jiekai |
| Abstract: | This paper contributes to the analysis of mergers in two-sided markets, notably those in which a platform provides its service for free on one side but obtains all its revenues from the other, as in the digital TV industry. Specifically, we assess a decision of the French competition authority which approved the merger of the broadcasting services of the TV channels involved but imposed a behavioral remedy prohibiting the merger of their respective advertising sales services. To do so, we build a structural model allowing for multi-homing of advertisers and, using a comprehensive dataset, we estimate the demand of viewers and advertisers. Our evaluation provides evidence that the remedy has been ineffective at limiting the increase in prices and amounts of advertising, due to the cross-side externalities between viewers and advertisers. Without resulting in significant positive effects on the viewers' surplus, the remedy has also drastically increased the advertisers' total cost. Nevertheless, the remedy has benefited the competitors of the merging channels. The main lesson of our analysis is that, in the process of designing competition or regulatory policy for two-sided markets, ignoring the interaction between the two sides of platforms can result in unexpected outcomes. |
| Keywords: | Two-sided market; platform merger; advertising; TV market; competition policy |
| JEL: | K21 L10 L40 L82 M37 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:124370&r=all |
| By: | Goldin, Adrián |
| Abstract: | En este documento se analizan las opciones de política para la adecuada regulación de la labor de los trabajadores que prestan servicios bajo demanda a través de aplicaciones de Internet en la Argentina y el fortalecimiento de las capacidades para hacer un uso inclusivo de las transformaciones digitales en curso. En este caso, el objeto de regulación no se refiere específicamente a la labor de trabajadores autónomos, aunque pueden serlo, ni de trabajadores dependientes, pero no cabe descartar que lo sean, ni de trabajadores pertenecientes a una ““tercera categoría”, que la normativa argentina no reconoce. La heterogeneidad implícita en este grupo de trabajadores impide una categorización uniforme en el sentido de la autonomía o la dependencia. El trabajador que se considere dependiente no debería ser privado de su derecho a reclamar esa condición, pero tampoco obligado a serlo para acceder a la protección de la ley. En este estudio se presenta un inventario comentado de los principales derechos y garantías que se proponen en la literatura comparada para garantizar la seguridad física de estos trabajadores y su acceso a condiciones de empleo decentes. Asimismo, se consideran las (escasas) normas de derecho positivo y los proyectos en curso de debate. |
| Keywords: | EMPLEO, INTERNET, TECNOLOGIA DE LA INFORMACION, TECNOLOGIA DE LAS COMUNICACIONES, COMERCIO DE SERVICIOS, SECTOR INFORMAL, POLITICA LABORAL, TRABAJO DIGNO, DERECHOS DE LOS TRABAJADORES, SINDICATOS, EMPLOYMENT, INTERNET, INFORMATION TECHNOLOGY, COMMUNICATION TECHNOLOGY, TRADE IN SERVICES, INFORMAL SECTOR, LABOUR POLICY, DECENT WORK, WORKERS' RIGHTS, TRADE UNIONS |
| Date: | 2020–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:45614&r=all |
| By: | Fitch, Dillon; Mohiuddin, Hossain; Handy, Susan |
| Abstract: | Bike-share services have rapidly expanded in cities worldwide and attracted substantial ridership, especially as electric and dockless bike- and scooter-share services have entered the market. These services have the potential to offer a healthier and more environmentally sustainable mobility option if used as an alternative to car travel and a connection to transit. However, little is known about the influence of bike-share systems on individual travel behavior; particularly if bike-share trips are replacing vehicle trips and increasing transit use. To address this knowledge gap, researchers at the University of California, Davis surveyed Sacramento-area residents before and after the 2018 implementation of a JUMP/Uberoperated dockless electric bike-share program to examine how the micromobility service influenced general travel behavior and attitudes. Surveys were sent to residents in downtown Sacramento, West Sacramento, and Davis within the bike-share service area and to a control group in Sacramento outside the service area. Key findings from the research are summarized in this brief. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2020–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8gm3w9qp&r=all |
| By: | Barajas, Jesus; Brown, Anne |
| Abstract: | Transit has long connected people to opportunities but access to transit varies greatly across space. In some cases, unevenly distributed transit supply creates transit service needs gaps which may impede travelers' abilities to cross space and access jobs or other opportunities. With the advent of ride-hailing services like Uber and Lyft, however, travelers now have a new potential to gain automobility without high car purchase costs and in the absence of reliable transit service. Research remains mixed on whether ride-hailing serves as a modal complement or substitute to transit or whether ride-hailing serves to fill transit service needs gaps. This study measures transit supply in Chicago and compares it to ride-hail origins and destinations to examine if ride-hailing fills existing transit service gaps. Findings reveal clustering of ride-hail pickups and drop-offs across the City of Chicago, but that the number of ride-hail pickups and drop-offs is most strongly associated with high neighborhood median household income rather than measures of transit supply. At the same time, temporal variations in transit supply and ride-hail trips suggest that a potential complement between transit and ride-hailing exists at select times. Policymakers should consider ways to encourage ride-hailing companies to fill transit gaps in low-income communities when options to increase service are limited. |
| Date: | 2020–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:y4jwk&r=all |
| By: | Irene Lo; Vahideh Manshadi; Scott Rodilitz; Ali Shameli |
| Abstract: | We study the design of a decentralized platform in which workers and jobs repeatedly match, and their future engagement with the platform depends on whether they successfully find a match. The platform offers two types of matches to workers: an "adopted match" which entails repeatedly matching with the same job or a one-time match. Due to randomness in match compatibility, adoption seems favorable as it reduces uncertainty in matching. However, high adoption levels reduce the number of available jobs, which in turn can suppress future worker engagement if the remaining workers cannot find a match. To optimally resolve the trade-off between adoption and maintaining available options, we develop a random market model that captures the heterogeneity in workers' future engagement based on match type. Our analysis reveals that the optimal policy for maximizing the matching in a single period is either full or no adoption. For sufficiently thick markets, we show that the optimal single-period policy is also optimal for maximizing the total discounted number of matches. In thinner markets, even though a static policy of full or no adoption can be suboptimal, it achieves a constant-factor approximation where the factor improves with market thickness. |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2005.10731&r=all |