Using customer-supplier networks, we document a strong increase in stock return comovement between customer and supplier after the establishment of their relationship. This increase in comovement is mainly associated with cash flow news and firm-specific information. We find that the idiosyncratic shocks to customers diffuse through the customer-supplier network and aggregate into a systematic risk, which affects suppliers' expected returns. Using a long-short portfolio based on exposure to aggregated customer risk, we realize annual excess returns of 3.1% (value-weighted) and 6.11% (equal-weighted), respectively. The customer risk factor cannot be explained by market, size, book-to-market, or momentum factor. Consistently, we also find a positive relationship between exposure to the customer risk factor and cost of equity capital.
{"title":"Aggregation of Idiosyncratic Shocks in the Customer-Supplier Network","authors":"Donghyun Kim, Yi Liu","doi":"10.2139/ssrn.3644141","DOIUrl":"https://doi.org/10.2139/ssrn.3644141","url":null,"abstract":"Using customer-supplier networks, we document a strong increase in stock return comovement between customer and supplier after the establishment of their relationship. This increase in comovement is mainly associated with cash flow news and firm-specific information. We find that the idiosyncratic shocks to customers diffuse through the customer-supplier network and aggregate into a systematic risk, which affects suppliers' expected returns. Using a long-short portfolio based on exposure to aggregated customer risk, we realize annual excess returns of 3.1% (value-weighted) and 6.11% (equal-weighted), respectively. The customer risk factor cannot be explained by market, size, book-to-market, or momentum factor. Consistently, we also find a positive relationship between exposure to the customer risk factor and cost of equity capital.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117075697","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study aims to determine how the influence of trust, preceived ease quality of information towards online shopping decision. The research was carried out for three months, starting in March to June 2020. The research method used was survey method with approach of causality. The population in this study is the millennial population totaling 200 respondents. Data collection techniques using literature techniques and questionnaires. Data were analyzed using IBM SPSS Statistics 22.0 and AMOS 22.0. All independent variables are influence the dependent variable with critical value ratio (CR), but only one independent variables that accepted with P value. H1 shows that the trust variable has a critical value ratio (CR) of 2.815> 1.96 and a P value of 0.005 < 0.05, so there is an influence between trust and online shopping decisions but the variable cannot be accepted. H2 shows that the ease variable has a critical value ratio (CR) of 4.224> 1.96 and a P value of 0.000 <0.05 then has a positive relationship between ease with online shopping decisions and the variable can be accepted. H3 shows that the quality of information variable has a critical value ratio (CR) of 0.572> 1.96 and a P value of 0.567> 0.05 then has a positive relationship between trust and online shopping decisions but the variable cannot be accepted.
{"title":"Influence of Trust, Perceived Ease and Quality of Information Towards Online Shopping Decision","authors":"Isfanz Ainu Zillah, Osly Usman","doi":"10.2139/ssrn.3642163","DOIUrl":"https://doi.org/10.2139/ssrn.3642163","url":null,"abstract":"This study aims to determine how the influence of trust, preceived ease quality of information towards online shopping decision. The research was carried out for three months, starting in March to June 2020. The research method used was survey method with approach of causality. The population in this study is the millennial population totaling 200 respondents. Data collection techniques using literature techniques and questionnaires. Data were analyzed using IBM SPSS Statistics 22.0 and AMOS 22.0. All independent variables are influence the dependent variable with critical value ratio (CR), but only one independent variables that accepted with P value. H1 shows that the trust variable has a critical value ratio (CR) of 2.815> 1.96 and a P value of 0.005 < 0.05, so there is an influence between trust and online shopping decisions but the variable cannot be accepted. H2 shows that the ease variable has a critical value ratio (CR) of 4.224> 1.96 and a P value of 0.000 <0.05 then has a positive relationship between ease with online shopping decisions and the variable can be accepted. H3 shows that the quality of information variable has a critical value ratio (CR) of 0.572> 1.96 and a P value of 0.567> 0.05 then has a positive relationship between trust and online shopping decisions but the variable cannot be accepted.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126961705","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The impact of social media on Tourism has been one of the main topics in tourism research. Many studies discuss and analyze the impact of social media on Tourism. However, less research studied on the impact of social media on specific, like festivals tourism. Festival make people united and the experiences of those participating in festivals can have a significant influence on others and social media provides the perfect channel for sharing their experiences. This research focused on social media factors that influenced visitors in the festival tourism. The study was designed to explored how social media factors impact to festival tourism. The structured interview was conducted to confirm social media factors from secondary data. The results show that social media better use as a search engine tools. For future research it is suggested to conduct quantitative survey to confirm these social media factors which analyzed by this study.
{"title":"Using Social Media as A Tool for Promoting Festival Tourism","authors":"Pei-Ying Wu","doi":"10.2139/ssrn.3644862","DOIUrl":"https://doi.org/10.2139/ssrn.3644862","url":null,"abstract":"The impact of social media on Tourism has been one of the main topics in tourism research. Many studies discuss and analyze the impact of social media on Tourism. However, less research studied on the impact of social media on specific, like festivals tourism. Festival make people united and the experiences of those participating in festivals can have a significant influence on others and social media provides the perfect channel for sharing their experiences. This research focused on social media factors that influenced visitors in the festival tourism. The study was designed to explored how social media factors impact to festival tourism. The structured interview was conducted to confirm social media factors from secondary data. The results show that social media better use as a search engine tools. For future research it is suggested to conduct quantitative survey to confirm these social media factors which analyzed by this study.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116301427","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper provides both theoretical and empirical studies on the incentive effect of peer recognition on online content provision. Our theoretical model illustrates how an influencer strategically reacts to various platform policies. Using unique data from the largest Chinese Question-and-Answer platform, we analyze the content provisions of all the influencers with more than 10,000 followers on the platform over two years. Using an instrumental variable approach, we find that a simple OLS method is likely to under-estimate the incentive of peer recognition for content provision because the reputational and privacy concerns make the badge policies counterproductive. Our findings suggest that while badges in the Q&A platform make it easier for users to identify the quality of an influencer, those badges that include a strong connotation may also limit the content contribution since influencers have concerns about their reputation management and privacy. The paper indicates from an empirical perspective that platforms’ attitudes towards real-name policies may depend on the trade-off between incentives for content creation and content regulation. Policies based on reputation and privacy may have a backlash against policies that encourage traffic.
{"title":"Peer Recognition and Content Provision Online","authors":"Xintong Han, Yushen Li, Tong Wang","doi":"10.2139/ssrn.3636513","DOIUrl":"https://doi.org/10.2139/ssrn.3636513","url":null,"abstract":"Abstract This paper provides both theoretical and empirical studies on the incentive effect of peer recognition on online content provision. Our theoretical model illustrates how an influencer strategically reacts to various platform policies. Using unique data from the largest Chinese Question-and-Answer platform, we analyze the content provisions of all the influencers with more than 10,000 followers on the platform over two years. Using an instrumental variable approach, we find that a simple OLS method is likely to under-estimate the incentive of peer recognition for content provision because the reputational and privacy concerns make the badge policies counterproductive. Our findings suggest that while badges in the Q&A platform make it easier for users to identify the quality of an influencer, those badges that include a strong connotation may also limit the content contribution since influencers have concerns about their reputation management and privacy. The paper indicates from an empirical perspective that platforms’ attitudes towards real-name policies may depend on the trade-off between incentives for content creation and content regulation. Policies based on reputation and privacy may have a backlash against policies that encourage traffic.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"246 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116413728","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Using the setting of funds of hedge funds (FoFs), we show that prime brokers (PBs) facilitate investors’ search for informed hedge fund managers. We find that FoFs exhibit PB bias, a disproportionate preference for hedge funds serviced by their connected PBs. This PB bias is stronger when the cost of hedge fund due diligence is higher relative to capital and when the FoF’s management firm generates higher prime brokerage fees. PB bias also predicts FoF performance: the highest PB-bias quartile outperforms the rest by 2.08%–2.45% per annum after adjusting for differences in their risks. This paper was accepted by Victoria Ivashina, finance.
{"title":"Do Prime Brokers Matter in the Search for Informed Hedge Fund Managers?","authors":"G. Aragon, Ji-Woong Chung, Byoung Uk Kang","doi":"10.2139/ssrn.3485354","DOIUrl":"https://doi.org/10.2139/ssrn.3485354","url":null,"abstract":"Using the setting of funds of hedge funds (FoFs), we show that prime brokers (PBs) facilitate investors’ search for informed hedge fund managers. We find that FoFs exhibit PB bias, a disproportionate preference for hedge funds serviced by their connected PBs. This PB bias is stronger when the cost of hedge fund due diligence is higher relative to capital and when the FoF’s management firm generates higher prime brokerage fees. PB bias also predicts FoF performance: the highest PB-bias quartile outperforms the rest by 2.08%–2.45% per annum after adjusting for differences in their risks. This paper was accepted by Victoria Ivashina, finance.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"118 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117343272","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Consider an aggregate economy of two cities. We study the impact that the use of utilitarian and Rawlsian policies by these two cities has on their ability to attract members of the the creative class. We first focus on the case in which both cities adopt utilitarian policies. Second, we analyze the case where both cities implement Rawlsian policies. Third, we study the case where one city uses a Rawlsian policy but the other city pursues a utilitarian policy. Fourth, we compare the policy outcomes in the first and the third cases above and show that if one city switches to a Rawlsian or more egalitarian objective when the other city remains utilitarian, the aggregate economy becomes less egalitarian. Finally, we compare the second and the third cases above and demonstrate that if one city switches to a Rawlsian or more egalitarian objective when the other city remains Rawlsian, the aggregate economy becomes more egalitarian.
{"title":"Using Utilitarian and Rawlsian Policies to Attract the Creative Class: A Tale of Two Cities","authors":"A. Batabyal, S. Yoo","doi":"10.2139/ssrn.3624485","DOIUrl":"https://doi.org/10.2139/ssrn.3624485","url":null,"abstract":"Consider an aggregate economy of two cities. We study the impact that the use of utilitarian and Rawlsian policies by these two cities has on their ability to attract members of the the creative class. We first focus on the case in which both cities adopt utilitarian policies. Second, we analyze the case where both cities implement Rawlsian policies. Third, we study the case where one city uses a Rawlsian policy but the other city pursues a utilitarian policy. Fourth, we compare the policy outcomes in the first and the third cases above and show that if one city switches to a Rawlsian or more egalitarian objective when the other city remains utilitarian, the aggregate economy becomes less egalitarian. Finally, we compare the second and the third cases above and demonstrate that if one city switches to a Rawlsian or more egalitarian objective when the other city remains Rawlsian, the aggregate economy becomes more egalitarian.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"128 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-06-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123805747","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Greek abstract: Το Εθνικό Κέντρο Κοινωνικών Ερευνών (EKKE) παρακολουθεί συνεχώς τις κοινωνικές και κοινωνιοτεχνολογικές εξελίξεις με στόχο να δώσει ώθηση στη χάραξη πολιτικών βάσει τεκμηρίων και να ανταποκριθεί στην ανάγκη για έγκαιρη και αξιόπιστη πληροφόρηση σχετικά με τη χρήση του διαδικτύου στην Ελλάδα. Ως εκ τούτου, έχει αναλάβει από το 2015 την πρωτοβουλία να διεξάγει μεγάλης κλίμακας έρευνα με κύριο πεδίο μελέτης την καταγραφή της διείσδυσης και των πολλαπλών επιδράσεων των διαδικτυακών υποδομών στην ελληνική κοινωνία, φιλοδοξώντας σε μια επιστημονικά ελέγξιμη και φιλοσοφικά αναστοχασμένη θεώρηση των φαινομένων του ψηφιακού κόσμου μας. Συγκεκριμένα, η εμπειρική δειγματοληπτική έρευνα World Internet Project Greece υλοποιείται από το EKKE και εντάσσεται στη σύμπραξη World Internet Project, μια διεθνή σύμπραξη πανεπιστημίων και ερευνητικών κέντρων που αποτελείται από περισσότερες από 30 χώρες διαφορετικών ηπείρων. Πρόκειται για ένα διεθνές ερευνητικό πρόγραμμα που ξεκίνησε το 1999 και διευθύνεται από το Annenberg School Center for the Digital Future του Πανεπιστημίου της Νότιας Καλιφόρνιας (ΗΠΑ), υπό τον Καθηγητή Jeff Cole. Στην παρούσα έκθεση παρουσιάζονται αναλυτικά τα περιεχόμενα του τελευταίου γύρου του World Internet Project Greece (2019), που αφορούν στην ανάδειξη κρίσιμων ζητημάτων του «ελληνικού διαδικτύου», όπως το ψηφιακό χάσμα, οι χρήσεις και η πληροφοριακή/ψυχαγωγική αξία του διαδικτύου, το κοινωνικό κεφάλαιο και ο βαθμός αξιοπιστίας, ελευθερίας της έκφρασης, πολιτικής επάρκειας, θυματοποίησης και παραβίασης της ιδιωτικότητας.
English abstract: The present study aims to offer a comprehensive presentation of the empirical results of the third wave of the World Internet Project (WIP) nation-wide survey in Greece, which was conducted from the 12th of April to the 23th of May 2019. It involves the main findings of this research wave and explores the development of internet penetration among the Greek population by providing comparative data on several aspects of the respondents’ internet-related behavior between all three WIP waves (2015, 2017, 2019). These aspects pertain to digital use, access and divides, online activities and social capital, internet reliability and fake news, online victimization and privacy, political efficacy and freedom of expression. Data were collected by 1,208 interviews over the phone on a structured questionnaire (based on WIP guidelines and included some additional national questions of theoretical interest) and manually transferred to an online platform using RM+ software and then to statistical analysis software. The dataset was weighted according to the 2011 Population Census and the Labor Force Survey. The paper also offers descriptive presentations of the results analyses as well as charts including mostly relative frequencies and, in some cases, variable means. The relative frequencies and means are included in the charts in order to allow the reader to have a clear overview of
{"title":"Το Διαδίκτυο στην Ελλάδα: Η έρευνα του ΕΚΚΕ για το World Internet Project (The Internet in Greece: Findings from World Internet Project - Greece)","authors":"N. Demertzis, Charalambos Tsekeris","doi":"10.2139/ssrn.3620561","DOIUrl":"https://doi.org/10.2139/ssrn.3620561","url":null,"abstract":"<b>Greek abstract:</b> Το Εθνικό Κέντρο Κοινωνικών Ερευνών (EKKE) παρακολουθεί συνεχώς τις κοινωνικές και κοινωνιοτεχνολογικές εξελίξεις με στόχο να δώσει ώθηση στη χάραξη πολιτικών βάσει τεκμηρίων και να ανταποκριθεί στην ανάγκη για έγκαιρη και αξιόπιστη πληροφόρηση σχετικά με τη χρήση του διαδικτύου στην Ελλάδα. Ως εκ τούτου, έχει αναλάβει από το 2015 την πρωτοβουλία να διεξάγει μεγάλης κλίμακας έρευνα με κύριο πεδίο μελέτης την καταγραφή της διείσδυσης και των πολλαπλών επιδράσεων των διαδικτυακών υποδομών στην ελληνική κοινωνία, φιλοδοξώντας σε μια επιστημονικά ελέγξιμη και φιλοσοφικά αναστοχασμένη θεώρηση των φαινομένων του ψηφιακού κόσμου μας. Συγκεκριμένα, η εμπειρική δειγματοληπτική έρευνα World Internet Project Greece υλοποιείται από το EKKE και εντάσσεται στη σύμπραξη World Internet Project, μια διεθνή σύμπραξη πανεπιστημίων και ερευνητικών κέντρων που αποτελείται από περισσότερες από 30 χώρες διαφορετικών ηπείρων. Πρόκειται για ένα διεθνές ερευνητικό πρόγραμμα που ξεκίνησε το 1999 και διευθύνεται από το Annenberg School Center for the Digital Future του Πανεπιστημίου της Νότιας Καλιφόρνιας (ΗΠΑ), υπό τον Καθηγητή Jeff Cole. Στην παρούσα έκθεση παρουσιάζονται αναλυτικά τα περιεχόμενα του τελευταίου γύρου του World Internet Project Greece (2019), που αφορούν στην ανάδειξη κρίσιμων ζητημάτων του «ελληνικού διαδικτύου», όπως το ψηφιακό χάσμα, οι χρήσεις και η πληροφοριακή/ψυχαγωγική αξία του διαδικτύου, το κοινωνικό κεφάλαιο και ο βαθμός αξιοπιστίας, ελευθερίας της έκφρασης, πολιτικής επάρκειας, θυματοποίησης και παραβίασης της ιδιωτικότητας.<br><br><b>English abstract:</b> The present study aims to offer a comprehensive presentation of the empirical results of the third wave of the World Internet Project (WIP) nation-wide survey in Greece, which was conducted from the 12th of April to the 23th of May 2019. It involves the main findings of this research wave and explores the development of internet penetration among the Greek population by providing comparative data on several aspects of the respondents’ internet-related behavior between all three WIP waves (2015, 2017, 2019). These aspects pertain to digital use, access and divides, online activities and social capital, internet reliability and fake news, online victimization and privacy, political efficacy and freedom of expression. Data were collected by 1,208 interviews over the phone on a structured questionnaire (based on WIP guidelines and included some additional national questions of theoretical interest) and manually transferred to an online platform using RM+ software and then to statistical analysis software. The dataset was weighted according to the 2011 Population Census and the Labor Force Survey. The paper also offers descriptive presentations of the results analyses as well as charts including mostly relative frequencies and, in some cases, variable means. The relative frequencies and means are included in the charts in order to allow the reader to have a clear overview of","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132412898","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Structural breaks are pervasive among macroeconomic and financial time series; consequently, forecasts may lose accuracy out of sample, which renders monitoring structural breaks a critical practice. We develop a structural break monitoring scheme, Bayesian Sequential Probability Test (BSPT), for dynamic regression models, which consists of two components: probabilistic detecting statistics, and a sequential stopping procedure. We demonstrate the finite sample property and effectiveness of the BSPT by comparing its performance with that of CUSUM under a variety of DGPs and in a few economic applications.
{"title":"Monitoring Structural Breaks in Dynamic Regression Models with Bayesian Sequential Probability Test","authors":"Haixi Li","doi":"10.2139/ssrn.3607315","DOIUrl":"https://doi.org/10.2139/ssrn.3607315","url":null,"abstract":"Structural breaks are pervasive among macroeconomic and financial time series; consequently, forecasts may lose accuracy out of sample, which renders monitoring structural breaks a critical practice. We develop a structural break monitoring scheme, Bayesian Sequential Probability Test (BSPT), for dynamic regression models, which consists of two components: probabilistic detecting statistics, and a sequential stopping procedure. We demonstrate the finite sample property and effectiveness of the BSPT by comparing its performance with that of CUSUM under a variety of DGPs and in a few economic applications.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128544410","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Most digital content distributed in information-goods platforms encounter the threat of online piracy. Strategic pricing, technology-based platform protection, and deterrent enforcement such as legal and moral measures are viewed as antidotes to piracy. We examine the effects of deterrent enforcement on platform protection and price choices. We develop an analytical model in which the content provider determines the price of content and the platform determines the platform protection. We find that platform protection and deterrent enforcement establish different relationships, depending on the context—complementation in the piracy region, substitution in the threat region with positive platform protection, and independence with zero platform protection in the remaining regions. Surprisingly, when the deterrent enforcement is moderately high, if platform protection is adopted, the optimal price is larger than the monopoly price in the no-piracy region without threat. More surprisingly, in the same deterrent enforcement region, if the platform executes the platform protection, the users, content provider, and platform all will fall into a middle-protection trap. In other words, a “win-win-win” result would arise if the platform gives up its protection.
{"title":"Managing Online Piracy in Platform: Pricing and Platform Protection","authors":"Zhiyong Li, Guofang Nan, Minqiang Li, Yong Tan","doi":"10.2139/ssrn.3594976","DOIUrl":"https://doi.org/10.2139/ssrn.3594976","url":null,"abstract":"Most digital content distributed in information-goods platforms encounter the threat of online piracy. Strategic pricing, technology-based platform protection, and deterrent enforcement such as legal and moral measures are viewed as antidotes to piracy. We examine the effects of deterrent enforcement on platform protection and price choices. We develop an analytical model in which the content provider determines the price of content and the platform determines the platform protection. We find that platform protection and deterrent enforcement establish different relationships, depending on the context—complementation in the piracy region, substitution in the threat region with positive platform protection, and independence with zero platform protection in the remaining regions. Surprisingly, when the deterrent enforcement is moderately high, if platform protection is adopted, the optimal price is larger than the monopoly price in the no-piracy region without threat. More surprisingly, in the same deterrent enforcement region, if the platform executes the platform protection, the users, content provider, and platform all will fall into a middle-protection trap. In other words, a “win-win-win” result would arise if the platform gives up its protection.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132023262","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Data as a resource has proven to be a game changer for firms. With a growing global data sphere, differences across platforms with exclusive access to big data intensify. Against this background, Jones and Tonetti (2020) model access to big data as an allocation problem for enhancing social welfare. They focus on the nonrivalry of data to show that the same dataset should be available across firms to spur innovation. Yet, this contrasts with the desire for privacy by individuals and the fear of creative destruction by firms. We provide a systematic literature review to inform IS research on options to solve the problem of big data misallocation. Specifically, we synthesize academic progress for improving data-sharing approaches. We show that technological options will be available soon that will let individuals decide to whom they grant access to their data. Such options will allow producing welfare-enhancing outcomes from big data.
{"title":"Stimulating Economic Growth by Unlocking the Nonrival Potential of Data - Review, Synthesis and Directions for Future Research","authors":"Stefan Mager, Johann Kranz","doi":"10.2139/ssrn.3720114","DOIUrl":"https://doi.org/10.2139/ssrn.3720114","url":null,"abstract":"Data as a resource has proven to be a game changer for firms. With a growing global data sphere, differences across platforms with exclusive access to big data intensify. Against this background, Jones and Tonetti (2020) model access to big data as an allocation problem for enhancing social welfare. They focus on the nonrivalry of data to show that the same dataset should be available across firms to spur innovation. Yet, this contrasts with the desire for privacy by individuals and the fear of creative destruction by firms. We provide a systematic literature review to inform IS research on options to solve the problem of big data misallocation. Specifically, we synthesize academic progress for improving data-sharing approaches. We show that technological options will be available soon that will let individuals decide to whom they grant access to their data. Such options will allow producing welfare-enhancing outcomes from big data.","PeriodicalId":319022,"journal":{"name":"Economics of Networks eJournal","volume":"115 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133791983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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