|
on Payment Systems and Financial Technology |
|
Issue of 2023‒01‒30
thirty papers chosen by |
| By: | Angelika Welte; Joy Wu |
| Abstract: | In recent years, the rise in digital payment innovations such as contactless cards and Interac eTransfer has spurred a discussion about the future of cash at the point of sale. The COVID-19 pandemic has also contributed to this discussion: While consumers reported that some merchants started to refuse cash early on in the pandemic, such reported refusals dropped as the pandemic progressed. The Bank of Canada’s most recent Merchant Acceptance Survey (MAS) took place in 2018, prompting a need for updated data to study merchant cash acceptance, payment trends and conditions for the potential issuance of a central bank digital currency (Lane 2020, 2021a). Against this background, the Bank conducted the 2021–22 MAS Pilot Study to monitor payment methods accepted by small and medium-sized businesses (SMBs). Survey data was collected from merchants in two batches, in late 2021 and early 2022. Our results show that 97% of SMBs in Canada accepted cash in 2021–22 and only 3% have plans to stop accepting cash. For cards and digital payments, merchant acceptance has increased since 2018. Additionally, the acceptance of different payment methods varies by the size of the merchant, industry and region. |
| Keywords: | Payment clearing and settlement systems |
| JEL: | C8 D22 E4 L2 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocadp:23-1&r=pay |
| By: | Luca Mungo; Bartolucci Silvia; Laura Alessandretti |
| Abstract: | Since the introduction of Bitcoin in 2009, the dramatic and unsteady evolution of the cryptocurrency market has also been driven by large investments by traditional and cryptocurrency-focused hedge funds. Notwithstanding their critical role, our understanding of the relationship between institutional investments and the evolution of the cryptocurrency market has remained limited, also due to the lack of comprehensive data describing investments over time. In this study, we present a quantitative study of cryptocurrency institutional investments based on a dataset collected for 1324 currencies in the period between 2014 and 2022 from Crunchbase, one of the largest platforms gathering business information. We show that the evolution of the cryptocurrency market capitalization is highly correlated with the size of institutional investments, thus confirming their important role. Further, we find that the market is dominated by the presence of a group of prominent investors who tend to specialise by focusing on particular technologies. Finally, studying the co-investment network of currencies that share common investors, we show that assets with shared investors tend to be characterized by similar market behavior. Our work sheds light on the role played by institutional investors and provides a basis for further research on their influence in the cryptocurrency ecosystem. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2301.02027&r=pay |
| By: | Kamau, Charles Guandaru (Technical University of Mombasa); Asser, Juliana Hawario; Ibua, Mary Penina; Otiende, Isaac Ojung'a |
| Abstract: | The modern industrial civilization improves anthropogenic activities and greatly simplifies human effort and the industrial world. Cloud computing and mobile applications are increasingly more than just trendy buzzwords; they are crucial elements of how business will be conducted in the future. A rising number of SMEs are currently utilizing mobile and cloud computing technology. This study examines the links between customer reviews, app ratings, and accounting app adoption in Kenya. The study collected data on 35 commonly used accounting mobile applications and performed a regression analysis on 27 apps that had received user reviews. Data on mobile apps' usage rate, volume of user reviews, and user ratings were gathered for this study. This study's findings revealed a significant relationship between the number of user evaluations and the adoption of accounting mobile apps. However, the study did not observe a significant effect of user reviews on the adoption of accounting mobile apps. This paper also identifies a few shortcomings that app users have pointed out in their reviews. The study's findings indicate that Kenya's degree of mobile app adoption has greatly increased due to the volume of app reviews. This study advises entrepreneurs, particularly those who engage with SMEs, to embrace technology and adopt freely downloadable mobile apps for their accounting and bookkeeping requirements. |
| Date: | 2023–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:osf:africa:m6t7p&r=pay |
| By: | Isaac Tamblyn; Tengkai Yu; Ian Benlolo |
| Abstract: | We discuss our simulation tool, fintech-kMC, which is designed to generate synthetic data for machine learning model development and testing. fintech-kMC is an agent-based model driven by a kinetic Monte Carlo (a.k.a. continuous time Monte Carlo) engine which simulates the behaviour of customers using an online digital financial platform. The tool provides an interpretable, reproducible, and realistic way of generating synthetic data which can be used to validate and test AI/ML models and pipelines to be used in real-world customer-facing financial applications. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2301.01807&r=pay |
| By: | Marc Ivaldi (TSE-R - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jiekai Zhang (Department of Management and Organisation, Hanken School of Economics, P.O. Box 479, FI-00101 Helsinki, Finland.) |
| 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 |
| Date: | 2022–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03881366&r=pay |
| By: | Michael Luca; Abhishek Nagaraj; Gauri Subramani |
| Abstract: | We evaluate the extent to which small businesses maintain an online presence, looking at restaurant listings on a major online review platform. While the majority of restaurants have an online presence, we find that roughly 18 percent in our sample have no presence as of the end of 2017, despite being able to list their business for free. Using temporal variation in a restaurant's online presence as well as a natural experiment arising from a data acquisition that led over a thousand businesses to be added to the platform, we find that maintaining an online presence is valuable for small businesses. Establishing an online presence leads to a 5% revenue increase. Using data on customer reviews post-add, we explore potential channels that could explain why restaurants continue to remain offline despite potential benefits from digital representation. Consistent with models of voluntary disclosure, we find that businesses that had stayed offline until the acquisition ended up having lower ratings, on average, than those that added themselves or were added by customers. |
| JEL: | D8 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30810&r=pay |
| By: | Alraqeb Zeynep; Knaack Peter; Macaire Camille |
| Abstract: | The rise of financial technology (FinTech) in China over the past decade has changed the traditional financial landscape in the country. We provide evidence on the role of digital financial services in promoting self-employment. We construct an indicator of relative FinTech adoption at the provincial-level in China. We show that the digitalization of financial services at an aggregated level is associated with a higher share of self-employed individuals in the total population. In rural areas, coverage breadth of digitalized financial services drives the positive impact on the share of self-employment, while in urban areas, digitalized insurance services appear to be more influential. We also show that the shift to self-employment is not at the expense of employment in private firms in the country. <p> L'essor des technologies financières (FinTech) en Chine au cours de la dernière décennie a modifié le paysage financier traditionnel du pays. Nous étudions la relation entre l’adoption de ces services et la part de l’entreprenariat dans la population totale. Nous construisons un indicateur de l'adoption relative des FinTech au niveau provincial dans le pays, et montrons que la numérisation des services financiers est associée à une part plus élevée d’autoentrepreneurs dans la population totale. Dans les zones rurales, l'étendue de la couverture des services financiers numérisés est à l'origine de cet impact positif, tandis que dans les zones urbaines, les services d'assurance numérisés semblent avoir plus d'influence. Nous montrons également que le passage à l'emploi indépendant ne se fait pas au détriment de l'emploi au sein des entreprises privées dans le pays. |
| Keywords: | Fintech, Financial Inclusion, Digitalization, China, Entrepreneurship; Fintech, inclusion financière, digitalisation, Chine, entreprenariat |
| JEL: | G23 J21 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:895&r=pay |
| By: | Bert Van Roosebeke (International Association of Deposit Insurers); Ryan Defina (International Association of Deposit Insurers) |
| Abstract: | The topic of Central Bank Digital Currencies (CBDC) is highly relevant to deposit insurers. As an increasing number of central banks further their research and planning efforts in CBDC, IADI members are encouraged to intensify their understanding of the potential impact of the introduction of a CBDC in their own as well as in other jurisdictions. To assess the potential impact of a CBDC, sound understanding of operating models and design features is crucial. These will affect factors of key interest to deposit insurers. This extends to the division of labour between central and commercial banks and the degree of privacy attached to CBDC usage. The paper offers a review of key issues relevant to deposit insurers regarding operating models and design features for CBDC, and links these to early global policy standards. Whilst not recommending a particular CBDC design, deposit insurers are encouraged to make their own determination based on developing a deeper understanding of the principles presented. This paper acts as a follow up to a previous IADI Fintech Brief which highlighted some key motivations for CBDCs by central banks. |
| Keywords: | deposit insurance, bank resolution |
| JEL: | G21 G33 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:awl:finbri:13&r=pay |
| By: | Philippe Bouquillion (LabSIC - Laboratoire des Sciences de l'Information et de la Communication - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - Université Sorbonne Paris Nord); Christine Ithurbide (CNRS - Centre National de la Recherche Scientifique, Passages - UB - Université de Bordeaux - ENSAP Bordeaux - École nationale supérieure d'architecture et du paysage de Bordeaux - Université Bordeaux Montaigne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article examines the role played by digital platforms in the transformation of the audio-visual industry in India. Are video-on-demand platforms contributing to India's growing dependence on global players or are they asserting the diversification of domestic players and the progress of Indian capitalism in the cultural and digital industries? To answer, we analyse the strategies of competition and collaboration between historical audio-visual players versus communication players, the dynamics of foreign ownership and the content localisation strategies of global players. We conclude that the study of digital platforms offers an important insight into new forms of economic and cultural hegemony in the cultural industries. |
| Keywords: | India, Audiovisual Industry, Digital Platform, Coopetition, Transnational Players, Political Economy of Communication |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03885296&r=pay |
| By: | Nellie Zhang |
| Abstract: | This paper proposes a unique approach to simulate intraday transactions in the Canadian retail payments batch system. Such transactions are currently unobtainable. The simulation procedure, though demonstrated in the realm of payments systems, has tremendous potential for helping with data-deficient problems where only high-level aggregate information is available. The approach uses the concept of integer composition in combinatorics to break down the daily total value and volume (available) into individual data points (unavailable) throughout the day. The algorithm also introduces a technique to incorporate any intraday timing pattern (known or hypothetical) to make simulated data closer to reality. Simulation results show that the probability distribution of individual payment values is remarkably stable through repeated random sampling. This suggests a high degree of accuracy and viability of this simulation method. In addition, the densities of simulated intraday transactions are found to be invariably skewed to the left of the mean payment value, which reflects the nature of retail payments systems. |
| Keywords: | Financial Markets; Payment clearing and settlement systems |
| JEL: | C C63 E42 E58 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-1&r=pay |
| By: | Stefano Carattini; Kenneth Gillingham; Xiangyu Meng; Erez Yoeli |
| Abstract: | Observability has been demonstrated to influence the adoption of pro-social behavior in a variety of contexts. This study implements a field experiment to examine the influence of observability in the context of a novel pro-social behavior: peer-to-peer solar. Peer-to-peer solar offers an opportunity to households who cannot have solar on their homes to access solar energy from their neighbors. However, unlike solar installations, peer-to-peer solar is an invisible form of pro-environmental behavior. We implemented a set of randomized campaigns using Facebook ads in the Massachusetts cities of Cambridge and Somerville, in partnership with a peer-to-peer company. In the campaigns, treated customers were informed that they could share “green reports” online, providing information to others about their greenness. We find that interest in peer-to-peer solar increases by up to 30% when “green reports, ” which would make otherwise invisible behavior visible, are mentioned in the ads. |
| Keywords: | peer to peer solar, pro-environmental behavior, social rewards, visibility, Facebook |
| JEL: | C93 D91 Q20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10173&r=pay |
| By: | Wenzlaff, Karsten; Spaeth, Sebastian |
| Abstract: | The ChatGPT model of OpenAI allows users to ask questions, which are answered through an artificial intelligence trained through supervised, reinforced machine-learning. The answers depend on the input which the algorithm receives from the users, as well as from the content it has been given. The paper explores how answers to definitions about crowdfunding, alternative finance and community finance deviate or correspond to answers given by real human-beings in academic scholarship. Crowdfunding, alternative finance and community finance are chosen because academic literature does not provide consistent definitions on each of these terms, but some definitions are accepted by more scholars. By addressing the research gap concerning the accuracy of answers generated by an artificial intelligence, the paper contributes to the growing literature of implications of textual artificial intelligence on academia. |
| Keywords: | Crowdfunding, Alternative Finance, Community Finance, Machine Learning, Artificial Intelligence |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:uhhwps:75&r=pay |
| By: | Chen, R.; Chen, K.; Ou, Carol (Tilburg University, School of Economics and Management) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:85ecf99c-76f0-416e-9604-d74e87dc218a&r=pay |
| By: | Sam (Ruiqing) Cao; Marco Iansiti |
| Abstract: | Large traditional conglomerates increasingly invest in cloud infrastructure through adopting IaaS and PaaS products, which facilitates digital transformation but creates complex interdependent systems spanning hybrid multi-cloud environments. Enterprise data architecture emerges as a crucial type of digital infrastructure that manages these complex systems. It is defined by the physical systems that collect and store data and the governance rules around the transformation, distribution, and consumption of data. We examine two technical frameworks for data architecture design: the microservices architecture that implements a modular design and the single fabric architecture that implements an integral design. We combine a survey measuring these data architecture designs at the enterprise level with data on cloud adoption and revenue across over 210, 000 establishments from 2017 to 2019. Among retail establishments, the non-integral data architecture is associated with a higher likelihood of adopting the cloud and a significant increase in the effect of cloud adoption on establishment revenue. Among financial services establishments, the non-modular data architecture is associated with a higher likelihood of adopting the cloud and a significant increase in the effect of cloud adoption on establishment revenue. These results suggest that modular and integral data architecture designs complement cloud adoption under different contingencies. While retail conglomerates may use a decentralized approach to ensure flexible adaptability to the external market environment, financial services conglomerates may use a centralized approach to ensure consistent integration of internal data sources and robust control. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10142&r=pay |
| By: | Maxime Delabarre (Sciences Po - Sciences Po) |
| Abstract: | This essay argues that the common competition framework is not to be applied to the financial sector. If traditionally competition brings efficiency and diversity in a market, financial regulators must also ensure the stability of the financial market. Henceforth, some limits and entry barriers have to exist. This is particularly true for FinTech companies. If the potential of those new actors is not to be contested, the risk they can bring is also quite obvious. If regulators want the market to be disrupted and to see consumers benefiting from the power of innovation of technology-based companies, they need to adapt their regulatory framework. Only under this condition will the benefits outweigh the potential risks. |
| Keywords: | Financial regulations, financial stability, competition, financial market, innovation |
| Date: | 2021–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03107769&r=pay |
| By: | , Susanti |
| Abstract: | Berbagai jenis e-commerce berkembang di Indonesia, termasuk Shopee. Shopee adalah platform belanja online berbasis mobile yang menawarkan berbagai produk untuk semua jenis konsumen. Berdasarkan kinerja Web for App serupa dari aplikasi e-commerce Indonesia, Shopee menduduki peringkat pertama platform e-commerce dengan jumlah daily active visitors tertinggi di Indonesia. Shopee merupakan toko online terpercaya yang memudahkan konsumen untuk mengunduh aplikasi ini melalui Playstore atau Appstore. Aplikasi Shopee menawarkan berbagai promosi yang dapat menarik perhatian konsumen seperti: gratis ongkos kirim ke seluruh wilayah, kupon tunai, paket diskon dan flash sale. Selain itu, shopee juga menawarkan fitur uang tunai. Kehadiran fitur ini memudahkan konsumen untuk melakukan pembayaran setelah barang yang dibeli sampai ke tangan konsumen. Hal-hal tersebut sangat mempengaruhi perilaku konsumen dalam mengambil keputusan pembelian di aplikasi Shopee. |
| Date: | 2022–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:jds93&r=pay |
| By: | Chen, Xiayu; Ou, Carol (Tilburg University, School of Economics and Management); Davison, Robert |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:429334bc-b257-4012-b0a9-5accd0ba2d4a&r=pay |
| By: | Choi, Younjeong (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The Korean real estate brokerage sector has grown in size thanks to rising real estate prices and transaction volumes. Despite its importance, the industry offers low consumer utility and relatively slow innovation due to lack of incentives for competition in the quality of service and prices compared to other service sectors. As online platforms begin to offer the same services, however, the real estate brokerage market is showing signs of change, with stiffer competition, discounted fees, and improvements to the quality of service. As a result, consumers stand to benefit from better brokerage services at lower prices. Fears have risen, however, of online platforms charging higher fees to market players than other service sectors and engaging in unfair trade practices. Improving the competitiveness of the sector requires players in the market innovate. Moreover, policy measures are urgently needed to enable a win-win partnership between market players and online platforms in the sector. |
| Keywords: | Korean Real Estate Brokerage Sector; Brokerage Market; Brokerage Service; Market Innovate |
| JEL: | G24 L85 |
| Date: | 2022–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2022_015&r=pay |
| By: | Bacasmas, Jill Angeli V.; Katigbak, Jovito Jose P.; Carlos, Jean Clarisse T. |
| Abstract: | Operationalizing a SWOT (strengths, weaknesses, opportunities, and threats) framework to process data gathered from an adapted diagnostic toolkit entitled “Women-Owned Businesses in Cross-border E-commerce: a Diagnostic Toolkit, ” this study reveals that regional and national policy landscapes have put utmost interest in promoting and fostering an enabling environment for women-led micro, small, and medium enterprises and digitalization. However, there are gaps in public-private sector coordination, access to enabling and support programs such as financing and capacity building, awareness due to informality, and scaling-up and sustainability of their e-commerce businesses. Moreover, the results also show that the cross-border e-commerce environment is promising from the point of view of (a) networks, representation, and visibility and (b) digital literacy, e-payments, e-commerce, and digital trade regulations. However, there are areas for improvement, such as in (a) digital literacy, e-payments, and e-commerce and digital trade regulations; (b) discrimination on online platforms; (c) trade facilitation agreement; and (d) logistics and customs duties. Given the diagnostic toolkit and SWOT results, the authors identified key practical policy recommendations for consideration. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | MSMEs;e-commerce;cross-border;trade;digitalization;women-led MSMEs |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2022-40&r=pay |
| By: | ICTD |
| Abstract: | This is the second webinar in DIGITAX’s e-levy series ‘The devil in the detail: Examining Ghana’s new e-levy from a policy design perspective. There has been much debate around the implications of the e-levy since it was implemented in May 2022. But so far, much less examination of the process through which the tax came about. This webinar will examine: how this policy was designed how it compares with taxes imposed elsewhere on digital financial services, and how it could be improved. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:17828&r=pay |
| By: | brown, martin; fengler, matthias; huwyler, jonas; koeniger, winfried; lalive, rafael; rohrkemper, robert |
| Abstract: | Monitoring Consumption Switzerland (MCS) is a public-private partnership between the University of St.Gallen and the payment companies Worldline and SIX that processes and publishes payment data on transactions in Switzerland processed by Wordline/SIX in realtime. This paper provides background information on this novel source of data, presents their attributes, aggregation and granularity, and their interpretability. The paper presents several use cases that show the strengths of the data, and it alerts future users of the data to possible challenges. The paper also discusses the project's impact and provides an outlook. |
| Keywords: | Monitoring, Consumption, Payment Data, Covid-19 |
| JEL: | D12 E21 E65 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2023:01&r=pay |
| By: | Batista, Catia; Sequeira, Sandra; Vicente, Pedro C. |
| Abstract: | We examine the impact of providing access to mobile savings accounts and improving financial management skills on the performance of microenterprises in Mozambique. The effects are highly heterogeneous: Combining both types of support is associated with a large increase in both short- and long-term firm profits and in financial security for female microentrepreneurs. This allowed female-headed microenterprises, particularly those with a higher level of profits at baseline, to close the gender profit gap in performance and skills relative to their male counterparts. The main drivers of improved business performance are improved financial management practices (bookkeeping), an increase in accessible savings, and reduced transfers to friends and relatives. Providing access to mobile money as a tool to save and manage finances also increases long-term profits of female microentrepreneurs, particularly for those with higher profits at baseline. However, neither treatment has any impact on male-led enterprises. Uncovering this heterogeneity in impact across different types of microenterprises can help improve the targeting of these interventions in the future. |
| Keywords: | economic development; financial literacy; gender; management; microenterprise development; mobile money |
| JEL: | J1 J50 |
| Date: | 2022–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117712&r=pay |
| By: | Andreea Cosnita-Langlais (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Bjørn Olav Johansen; Lars Sørgard |
| Abstract: | In two-sided markets it is important to consider rebalancing effects following a merger, i.e. the impact of a change in margin on one side of the market, either due to a price change or to efficiency gains, on the pricing incentives on the other side. We propose modified versions for the indices of pricing pressure (UPP and GUPPI) that take this into account. We show that in two-sided markets where the cross-group externalities are positive the upward pricing pressure will typically be overstated if the rebalancing effect is ignored. Our approach explains why competition agencies should look at both sides of the market when assessing platform mergers |
| Keywords: | Merger assessment, Two-sided markets, Upward Pricing Pressure |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03032755&r=pay |
| By: | Santiago Carbo-Valverde; Héctor Pérez Saiz; Hongyu Xiao |
| Abstract: | This paper measures how both geographical and cultural proximity of bank branches affect household credit choice and pricing. We examine both types of proximity jointly to separately identify the importance of soft information versus alternative mechanisms. Using a detailed household-level database for Canada, we find that both geographical and cultural proximity increase consumer credit by reducing the cost of obtaining soft information. Furthermore, soft information obtained via the two types of proximity can be either substitutes for or complements to each other, with complementarity being more likely for products that require high levels of ex-ante screening. Overall, our results suggest that ongoing branch consolidation, happening in many countries, may lead to lower financial inclusion, especially in culturally diverse neighbourhoods. |
| Keywords: | Credit and credit aggregates; Financial institutions; Financial services |
| JEL: | D82 D83 G20 G21 R22 Z10 Z13 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-2&r=pay |
| By: | Steffen, Nico; Wiewiorra, Lukas |
| Abstract: | Digitale Plattformen und Geschäftsmodelle stellen ein Kernelement der heutigen Internetökonomie dar. Mit der Entwicklung von großen Internetkonzernen wird das Internet zunehmend zentralistischer. Endanwender werden dabei immer stärker in die Ökosysteme einzelner großer Anbieter eingebunden und sehen sich mit zunehmend steigenden Wechselkosten konfrontiert. Eine besondere Rolle nehmen dabei Apple und Google (Alphabet) ein, die sogenannte mobile Ökosysteme orchestrieren und kontrollieren. Solche mobilen Ökosysteme rund um Smartphones -im Kern bestehend aus Hardware, Betriebssystem, App-Marktplätzen und weiteren integrierten Diensten- stellen zunehmend den wichtigsten Zugang zu Inhalten und Produkten, aber auch zu Informationen, sozialem Leben und mehr dar. Die gleichzeitige Kontrolle über mehrere entscheidende Zugangspunkte zu diesen Inhalten sorgt dafür, dass die Betreiber mobiler Ökosysteme in besonderem Maße über den Zugang zu Hard- und Softwarefunktionalitäten und -diensten verfügen und die Bedingungen für entscheidende Vertriebs- und Zugangswege setzen können. Damit sind Endanwender und Geschäftskunden (z.B. Softwareentwickler) regelmäßig den geltenden Bedingungen und Regelwerken einzelner Anbieter unterworfen. In diesem Diskussionsbeitrag werden die Hintergründe und Auswirkungen sowie mögliche Abhilfemaßnahmen entsprechender Zugangsproblematiken auf den verschiedenen Ökosystemebenen analysiert. Geschäftspraktiken und Fragestellungen rund um Endgeräte, Hardwarefunktionalität, Betriebssysteme, App-Marktplätze, Browser und vertikal integrierte Angebote auf der Diensteebene standen dabei in den letzten Jahren unter wachsender wettbewerbsrechtlicher und regulatorischer Aufmerksamkeit. Neben der gezielten Adressierung einzelner Ebene wächst dabei auch immer mehr Blickpunkt auf Zugangsfragen zu mobilen Ökosystemen und deren starke Verzahnung als Ganzes, wofür sich in der Diskussion teilweise der Begriff der "Device Neutrality" entwickelt hat. Neben wettbewerbsrechtlichen Untersuchungen und Rechtsprechung wandelt sich dabei der internationale Fokus hin zu einer ex ante Regulierung, wobei der europäische Digital Markets Act (DMA) den wohl umfangreichsten Vorschlag darstellt und sich nun bereits in der Umsetzung befindet. Exemplarisch liegt der Fokus dieser Studie daher auf den vorgesehenen Abhilfemaßnahmen des DMA, die im Kontext der betreffenden Zugangsstufen diskutiert und analysiert werden. Diese werden durch Alternativ- und Spezifizierungsvorschläge aus der wissenschaftlichen Literatur und dem internationalen Kontext ergänzt. Ein Fokus der Diskussion liegt dabei auf der Ebene der App-Marktplätze und auf alternativen Zugangswegen zu Apps und Inhalten. Aufgrund von Gewohnheits- und indirekten Netzwerkeffekten bleibt der praktische Erfolg entsprechender Maßgaben in der Breite fraglich, könnte aber Eintrittsmöglichkeiten und Alternativen für bereits markt- und markenstarke Anbieter aus anderen Bereichen schaffen. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wikdps:487&r=pay |
| By: | Giovanni Lugaresi (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay); Andrea Matta (Dipartimento di Meccanica - POLIMI - Politecnico di Milano [Milan]) |
| Abstract: | The recent industrial scenario was defined by the emergence of digital twins and cyber physical systems as key elements for manufacturers leadership. Digital models can perform good in terms of production planning and control decisions if they are correctly representing their physical counterparts at anytime. Discrete event simulation can be considered as established digital models of manufacturing system, thanks to the proven capabilities of correctly estimating the system performances. Automated simulation model generation techniques can significantly reduce model development phases and allow for using simulation models for short term decisions in production. Application studies and test cases are scarce in the literature. In this paper, we present the application of a digital model generation method. The test case is done exploiting a lab-scale model of a manufacturing system composed by six stations. We investigate how the model generation works online, during the transient phase of a manufacturing system. Results confirm the real-time applicability of the approach provided that sufficient data points are available from the production event logs. |
| Keywords: | Industry 4.0, Simulation, Digital Twins, Process Mining |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03880536&r=pay |
| By: | Azzoni, Carlos R. (Departamento de Economia, Universidade de São Paulo); Moita, Rodrigo M. S. (Departamento de Economia, Universidade de São Paulo); Rodrigues, Mateus (Graduate Student, Sao Paulo School of Economics, Fundação Getúlio Vargas); Merlo, Marina (iFood Public Policy); Fisch, Arthur (Public Sector Politics and Economics Research Center, Fundação Getúlio Vargas) |
| Abstract: | Food delivery apps have become popular in recent years, with additional strength during the COVID-19 pandemic. Do these apps benefit new and more suit to delivery restaurants at the cost of harming more traditional non-delivery ones? What is the net impact on the restaurant industry as a whole? This paper investigates these questions by analyzing the impact of the major meal delivery app in the Brazilian restaurant industry. We analyze the effects of the app’s introduction on the opening and closure of restaurants and employment in the restaurant business. The app positively affected opening new restaurants, but less so during the pandemic years. It also had a negative effect on the rate of closure of restaurants, implying a net positive impact on the industry as a whole. But, again, this effect is smaller during the COVID19 pandemic. Also, restaurants increased their employment when they joined the delivery platform. At the same time, restaurants that remained out of the platform decreased their employment during the same period. The net effect of the delivery app on employment in the restaurant industry is positive but not enough to offset the general negative trend of decreasing employment. |
| Keywords: | food delivery apps; restaurant industry |
| JEL: | R10 |
| Date: | 2023–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:nereus:2023_002&r=pay |
| By: | Saeed Badri (Vrije Universiteit Amsterdam); Bernd Heidergott (Vrije Universiteit Amsterdam); Ines Lindner (Vrije Universiteit Amsterdam) |
| Abstract: | We study the impact of bots on social learning in a social network setting. Regular agents receive independent noisy signals about the true value of a variable and then communicate in a network. They na¨?vely update beliefs by repeatedly taking weighted averages of neighbors’ opinions. Bots are agents in the network that spread fake news by disseminating biased information. Our main contributions are threefold. (1) We show that the consensus of the network is a mapping of the interaction rate between the agents and bots and is discontinuous at zero mass of bots. This implies that even a comparatively “infinitesimal” small number of bots still has a sizeable impact on the consensus and hence represents an obstruction to the “wisdom of crowds”. (2) We prove that the consensus gap induced by the marginal presence of bots depends neither on the agent network or bot layout nor on the assumed connection structure between agents and bots. (3) We show that before the ultimate (and bot-infected) consensus is reached, the network passes through a quasi-stationary phase which has the potential to mitigate the harmful impact of bots. |
| Keywords: | Fake news, Misinformation, Social networks, Social Media, Wisdom of Crowds |
| JEL: | D83 D85 Z13 |
| Date: | 2022–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20220097&r=pay |
| By: | Szabolcs Nagy; Mariann Veresne Somosi |
| Abstract: | The information age is also an era of escalating social problems. The digital transformation of society and the economy is already underway in all countries, although the progress in this transformation can vary widely. There are more social innovation projects addressing global and local social problems in some countries than in others. This suggests that different levels of digital transformation might influence the social innovation potential. Using the International Digital Economy and Society Index and the Social Innovation Index, this study investigates how digital transformation of the economy and society affects the capacity for social innovation. A dataset of 29 countries was analysed using both simple and multiple linear regressions and Pearsons correlation. Based on the research findings, it can be concluded that the digital transformation of the economy and society has a significant positive impact on the capacity for social innovation. It was also found that the integration of digital technology plays a critical role in digital transformation. Therefore, the progress in digital transformation is beneficial to social innovation capacity. In line with the research findings, this study outlines the implications and possible directions for policy. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.13840&r=pay |
| By: | Mattia Di Russo (Laboratoire I3S - SPARKS - Scalable and Pervasive softwARe and Knowledge Systems - I3S - Laboratoire d'Informatique, Signaux, et Systèmes de Sophia Antipolis - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Zakaria Babutsidze (SKEMA Business School); Célia da Costa Pereira (Laboratoire I3S - SPARKS - Scalable and Pervasive softwARe and Knowledge Systems - I3S - Laboratoire d'Informatique, Signaux, et Systèmes de Sophia Antipolis - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Maurizio Iacopetta (SKEMA Business School); Andrea G. B. Tettamanzi (WIMMICS - Web-Instrumented Man-Machine Interactions, Communities and Semantics - CRISAM - Inria Sophia Antipolis - Méditerranée - Inria - Institut National de Recherche en Informatique et en Automatique - Laboratoire I3S - SPARKS - Scalable and Pervasive softwARe and Knowledge Systems - I3S - Laboratoire d'Informatique, Signaux, et Systèmes de Sophia Antipolis - UNS - Université Nice Sophia Antipolis (1965 - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015-2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | A central question in economics is how a society accepts money, defined as a commodity used as a medium of exchange, as an unplanned outcome of the individual interactions. This question has been approached theoretically in the literature and investigated by means of agent-based modeling. While an important aspect of the theory is the individual's speculative behavior, that is, the acceptance of money despite a potential short-term loss, previous work has been unable to reproduce it with boundedly rational agents. We investigate the reasons for the failure of previous work to have boundedly rational agents learn speculative strategies. Starting with an agent-based model proposed in the literature, where the intelligence of the agents is guided by a learning classifier system that is shown to be capable of learning trade strategies (core strategies) that involve short sequences of trades, we test several modifications of the original model and we come up with a set of assumptions that enable the spontaneous emergence of speculative strategies, which explain the emergence of money even when the agents have bounded rationality. |
| Keywords: | Search and Money Reinforcement Learning Social Simulation, Search and Money, Reinforcement Learning, Social Simulation |
| Date: | 2022–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03913561&r=pay |