With the proliferation of online rating platforms, there has been an increasing concern over the authenticity of reviews posted online. This paper develops a theoretical framework to study sellers' incentives to solicit fake reviews in online rating platforms, and provides empirical evidence supporting some of the model's conclusions. The model predicts that sellers' optimal investment in fake reviews is not a monotone function of their reputation, with sellers with either a very good or very bad history of past reviews displaying less incentives to fake reviews. Another prediction from the model is that, in order to maximize the impact from each fake review, sellers tend to concentrate review manipulation at the initial stages following their entrance (or reentered with a new name) into the market. Using data collected from Amazon, I was able to observe those features from the model at the empirical level by estimating the probability of a review being fake as a function of the product's reputation and the time it took for the review to be posted since the seller entered the market.
{"title":"Incentives to Fake Reviews in Online Platforms","authors":"G. Saraiva","doi":"10.2139/ssrn.3538894","DOIUrl":"https://doi.org/10.2139/ssrn.3538894","url":null,"abstract":"With the proliferation of online rating platforms, there has been an increasing concern over the authenticity of reviews posted online. This paper develops a theoretical framework to study sellers' incentives to solicit fake reviews in online rating platforms, and provides empirical evidence supporting some of the model's conclusions. The model predicts that sellers' optimal investment in fake reviews is not a monotone function of their reputation, with sellers with either a very good or very bad history of past reviews displaying less incentives to fake reviews. Another prediction from the model is that, in order to maximize the impact from each fake review, sellers tend to concentrate review manipulation at the initial stages following their entrance (or reentered with a new name) into the market. Using data collected from Amazon, I was able to observe those features from the model at the empirical level by estimating the probability of a review being fake as a function of the product's reputation and the time it took for the review to be posted since the seller entered the market.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-02-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129366975","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 chapter presents findings of a pilot research that focused on a question “To what extent core administrative services for citizens are digitalized in digitization of core administrative services for citizens in the Czech Republicia, Hungary and Romania?"
{"title":"E-government and Digitalisation of Core Administrative Services for Citizens in Selected CEE Countries","authors":"David Špaček, Mihály Csótó, N. Urs","doi":"10.2139/ssrn.3545277","DOIUrl":"https://doi.org/10.2139/ssrn.3545277","url":null,"abstract":"This chapter presents findings of a pilot research that focused on a question “To what extent core administrative services for citizens are digitalized in digitization of core administrative services for citizens in the Czech Republicia, Hungary and Romania?\"","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"112 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124136052","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}
E-commerce is a relatively new way of shopping in India. The prime focus of this paper is to explore the factors influencing customer buying intention through electronic commerce. The study encompasses the analysis of several factors such as privacy, trust, security and organisations reputation. The hypothesis was derived based on these factors in the context of e-commerce in India. The data is collected through questionnaires from 287 respondents from the region of Maharashtra, India using the random sampling method. The respondents were considered who are frequently buying goods and services through e-commerce websites. The analysis has been performed using the method of structural equation modeling, confirmatory factor analysis, and path analysis. The outcome of the paper deliberates that the privacy, trust, security and organisations reputation significantly affects the online purchase intention of e-commerce consumers. It is recommended to provide attention to these factors to increase sales in the e-commerce business. The factor of trust is found as the most significant factor among all the factors which indicates that the respondents from the selected region lack trust toward online commerce. Hence, e-commerce organisations should develop websites that meet the expectations of prospective consumers. This paper delineated the significant factors affecting the buying intentions in the context of online business in Maharashtra. Moreover, it has established an integrated framework to realize the influences on purchase decisions of consumers in e-commerce business environment in India.
{"title":"Impact of Social Media, Security Risks and Reputation of E-Retailer on Consumer Buying Intentions through Trust in Online Buying: A Structural Equation Modeling Approach","authors":"Dr. Vinay Kumar","doi":"10.2139/ssrn.3573902","DOIUrl":"https://doi.org/10.2139/ssrn.3573902","url":null,"abstract":"E-commerce is a relatively new way of shopping in India. The prime focus of this paper is to explore the factors influencing customer buying intention through electronic commerce. The study encompasses the analysis of several factors such as privacy, trust, security and organisations reputation. The hypothesis was derived based on these factors in the context of e-commerce in India. The data is collected through questionnaires from 287 respondents from the region of Maharashtra, India using the random sampling method. The respondents were considered who are frequently buying goods and services through e-commerce websites. The analysis has been performed using the method of structural equation modeling, confirmatory factor analysis, and path analysis. The outcome of the paper deliberates that the privacy, trust, security and organisations reputation significantly affects the online purchase intention of e-commerce consumers. It is recommended to provide attention to these factors to increase sales in the e-commerce business. The factor of trust is found as the most significant factor among all the factors which indicates that the respondents from the selected region lack trust toward online commerce. Hence, e-commerce organisations should develop websites that meet the expectations of prospective consumers. This paper delineated the significant factors affecting the buying intentions in the context of online business in Maharashtra. Moreover, it has established an integrated framework to realize the influences on purchase decisions of consumers in e-commerce business environment in India.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127618818","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}
Online matching platforms require new approaches to market design because firms can now control many aspects of the search and interaction process through various IT-enabled features. Although choice capacity—the number of candidates a user can view and select—is a key design feature of online matching platforms, its effect on engagement and matching outcomes remains unclear. We examine the effect of different choice capacities on market performance by conducting a randomized field experiment in collaboration with an online dating platform. Specifically, we design four treatment groups with different choice capacities in which users can only interact with other users in the same group and randomly assign the users to the treatment groups. We find that providing more choice capacity to male and female users has different effects on choice behaviors and matching outcomes. Although increasing the choice capacity of male users yields the highest engagement, increasing the choice capacity of female users is the most effective method to increase matching outcomes. We empirically demonstrate four mechanisms underlying the effectiveness of different choice capacity designs and generalize our findings by discussing how choice capacity can be designed to increase engagement and matching outcomes.
{"title":"The Secret to Finding a Match: A Field Experiment on Choice Capacity Design in an Online Dating Platform","authors":"Jaehwuen Jung, H. Lim, Dongwon Lee, Chul Kim","doi":"10.2139/ssrn.3517018","DOIUrl":"https://doi.org/10.2139/ssrn.3517018","url":null,"abstract":"Online matching platforms require new approaches to market design because firms can now control many aspects of the search and interaction process through various IT-enabled features. Although choice capacity—the number of candidates a user can view and select—is a key design feature of online matching platforms, its effect on engagement and matching outcomes remains unclear. We examine the effect of different choice capacities on market performance by conducting a randomized field experiment in collaboration with an online dating platform. Specifically, we design four treatment groups with different choice capacities in which users can only interact with other users in the same group and randomly assign the users to the treatment groups. We find that providing more choice capacity to male and female users has different effects on choice behaviors and matching outcomes. Although increasing the choice capacity of male users yields the highest engagement, increasing the choice capacity of female users is the most effective method to increase matching outcomes. We empirically demonstrate four mechanisms underlying the effectiveness of different choice capacity designs and generalize our findings by discussing how choice capacity can be designed to increase engagement and matching outcomes.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123635098","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 whether the effect of the quality of service, trust and satisfaction with the m-banking user loyalty. This research was conducted for 3 months starting in October to December 2019. The research method used was survey method with approach of causality. The population in this study were bank customers mbanking users totaling 200 respondents. Data collection techniques use technical literature and questionnaires. Data were analyzed using SmartPLS software version 3. PLS (Partial Least Square) with structural equation analysis (SEM). The results showed that each variable has a significant effect.
{"title":"The Effect of Use, Quality of Service, Trust and Satisfaction Loyalty M-Banking Users","authors":"Osly Usman, Yuyun Sulistyowati","doi":"10.2139/ssrn.3510458","DOIUrl":"https://doi.org/10.2139/ssrn.3510458","url":null,"abstract":"This study aims to determine whether the effect of the quality of service, trust and satisfaction with the m-banking user loyalty. This research was conducted for 3 months starting in October to December 2019. The research method used was survey method with approach of causality. The population in this study were bank customers mbanking users totaling 200 respondents. Data collection techniques use technical literature and questionnaires. Data were analyzed using SmartPLS software version 3. PLS (Partial Least Square) with structural equation analysis (SEM). The results showed that each variable has a significant effect.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"98 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123338929","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}
A ‘third wave’ of computing is emerging, based on widespread use of processors with data handling and communications capabilities embedded in a variety of objects and environments not previously computerised, such as refrigerators, buildings, cars, fitness trackers and hairbrushes. With the ensuing sociotechnical change the possibility arises of a ‘regulatory disconnection’ between current consumer protection law and new things, activities and relationships brought about by the third wave. This third wave has had many names, including ubiquitous and pervasive computing, ambient intelligence and the Internet of Things. However, significant definitional inconsistencies and incoherencies exist, necessitating the development in this dissertation of a technical research framework. This framework involves abstracting and analysing the attributes of, and interactions among, the technologies, and defining a unifying concept for the central technological element, the ‘eObject’. The dissertation proceeds to outline the categories of legal problems that can arise in the context of sociotechnical change, emphasising that not every instance of sociotechnical change operates outside the scope of existing legal rules. Therefore, new things, activities and relationships enabled by new technologies should first be judged against existing rules and their goals. The attributes and interactions of eObjects are then interrogated to identify where sociotechnical change associated with eObjects might lead to challenges for consumers. The challenges identified are ones whose outcomes are in conflict with the goals of Australian consumer protection law, potentially giving rise to legal problems. One of those identified challenges is examined in depth. Widespread digitisation of commerce has arguably given firms an enhanced ability not only to compile detailed customer profiles, but also to exploit consumers’ individual biases and vulnerabilities. This dissertation argues that opportunities for such ‘digital consumer manipulation’ will be substantially increased by the widespread use of eObjects. Provisions of the Australian Consumer Law (ACL) and related cases are examined to evaluate the effectiveness of Australian consumer protection law in the face of ‘digital consumer manipulation’ facilitated by eObjects. Legal problems with the ACL are identified; and some mechanisms for reconnection of consumer law with its goals and purposes are outlined and analysed. This examination allows for a ‘reflecting back’ on the utility of particular concepts and frameworks used in law and technology research.
{"title":"Surfing the Third Wave of Computing: Consumer Contracting With eObjects in Australia","authors":"Kayleen Manwaring","doi":"10.2139/ssrn.3890503","DOIUrl":"https://doi.org/10.2139/ssrn.3890503","url":null,"abstract":"A ‘third wave’ of computing is emerging, based on widespread use of processors with data handling and communications capabilities embedded in a variety of objects and environments not previously computerised, such as refrigerators, buildings, cars, fitness trackers and hairbrushes. With the ensuing sociotechnical change the possibility arises of a ‘regulatory disconnection’ between current consumer protection law and new things, activities and relationships brought about by the third wave. This third wave has had many names, including ubiquitous and pervasive computing, ambient intelligence and the Internet of Things. However, significant definitional inconsistencies and incoherencies exist, necessitating the development in this dissertation of a technical research framework. This framework involves abstracting and analysing the attributes of, and interactions among, the technologies, and defining a unifying concept for the central technological element, the ‘eObject’. The dissertation proceeds to outline the categories of legal problems that can arise in the context of sociotechnical change, emphasising that not every instance of sociotechnical change operates outside the scope of existing legal rules. Therefore, new things, activities and relationships enabled by new technologies should first be judged against existing rules and their goals. The attributes and interactions of eObjects are then interrogated to identify where sociotechnical change associated with eObjects might lead to challenges for consumers. The challenges identified are ones whose outcomes are in conflict with the goals of Australian consumer protection law, potentially giving rise to legal problems. One of those identified challenges is examined in depth. Widespread digitisation of commerce has arguably given firms an enhanced ability not only to compile detailed customer profiles, but also to exploit consumers’ individual biases and vulnerabilities. This dissertation argues that opportunities for such ‘digital consumer manipulation’ will be substantially increased by the widespread use of eObjects. Provisions of the Australian Consumer Law (ACL) and related cases are examined to evaluate the effectiveness of Australian consumer protection law in the face of ‘digital consumer manipulation’ facilitated by eObjects. Legal problems with the ACL are identified; and some mechanisms for reconnection of consumer law with its goals and purposes are outlined and analysed. This examination allows for a ‘reflecting back’ on the utility of particular concepts and frameworks used in law and technology research.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131318121","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}
We study professional players and their roles in peer-to-peer (P2P) markets. Most notably, P2P home-sharing platforms (e.g., Airbnb) consist of both professional hosts and nonprofessional individual hosts. What are the roles of the professionals? Should home-sharing platforms regulate their participation? Professional hosts may primarily offer properties that nonprofessional hosts would not supply and attract more guests—the differentiation effect. Or they may mostly supply similar properties and compete with the nonprofessionals—the competition effect. Using a unique data set of Airbnb listings, we first find that professional hosts’ properties are more expensive and have superior characteristics than nonprofessionals’. Second, we capitalize on a quasi-experiment in which Airbnb capped the number of properties a host can manage in several cities in the United States to determine the roles of professional hosts. With different predictions (about the policy impacts) under the differentiation versus competition effects, we find evidence suggesting the dominance of the latter. In particular, the policy increased the supply from nonprofessional hosts, and the price level of nonprofessional properties as a group went up after the policy. However, our findings of heterogeneity in policy impacts suggest that the dominance of competition is less prominent in certain markets. Finally, we find that the platform was not worse off in attracting reservations or securing revenue after the policy. Our findings contribute to both theory and practice as they reveal the roles of professional players and how P2P platforms can manage their participation. This paper was accepted by Kartik Hosanagar, information systems.
{"title":"Regulating Professional Players in Peer-to-Peer Markets: Evidence from Airbnb","authors":"Wei Chen, Zaiyan Wei, Karen L. Xie","doi":"10.2139/ssrn.3450793","DOIUrl":"https://doi.org/10.2139/ssrn.3450793","url":null,"abstract":"We study professional players and their roles in peer-to-peer (P2P) markets. Most notably, P2P home-sharing platforms (e.g., Airbnb) consist of both professional hosts and nonprofessional individual hosts. What are the roles of the professionals? Should home-sharing platforms regulate their participation? Professional hosts may primarily offer properties that nonprofessional hosts would not supply and attract more guests—the differentiation effect. Or they may mostly supply similar properties and compete with the nonprofessionals—the competition effect. Using a unique data set of Airbnb listings, we first find that professional hosts’ properties are more expensive and have superior characteristics than nonprofessionals’. Second, we capitalize on a quasi-experiment in which Airbnb capped the number of properties a host can manage in several cities in the United States to determine the roles of professional hosts. With different predictions (about the policy impacts) under the differentiation versus competition effects, we find evidence suggesting the dominance of the latter. In particular, the policy increased the supply from nonprofessional hosts, and the price level of nonprofessional properties as a group went up after the policy. However, our findings of heterogeneity in policy impacts suggest that the dominance of competition is less prominent in certain markets. Finally, we find that the platform was not worse off in attracting reservations or securing revenue after the policy. Our findings contribute to both theory and practice as they reveal the roles of professional players and how P2P platforms can manage their participation. This paper was accepted by Kartik Hosanagar, information systems.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"83 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133482144","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 examines the trade-off between online advertising effectiveness and (do-not-track) privacy regulation. Recent literature on ad-financed business model predicts that consumers who patronize multiple platforms (multi-homing) can have less per-impression value as they may see duplicated ads from multiple sources. The use of tracking technology in the digital space may however eliminate the redundant ad provision at the expense of consumer privacy. The presenting paper provides the first empirical evidence on whether multi-homer’s attention is less valuable in online media market, under FTC’s privacy regulation on tracking. The paper then discusses the potential market outcome if the privacy regulation were removed. The publisher ad data is scraped from BuySellAds and matched with comScore 2016 for consumer multihoming behavior. The study employed a quasi-experiment based on ad location in a webpage to identify the multi-homing effect on ad prices. By finding that the marginal effect of multi-homing (treatment) on ad prices is indeed more negative for the more viewable ads (treated), the paper concludes that consumer multi-homing behavior can increase the tendency of over impressions, and such tendency can decrease advertisers’ valuation of ad slots in the digital display ad market.
{"title":"The Impact of Consumer Multi-homing Behavior on Ad Prices: Evidence from an Online Marketplace","authors":"Yu-Hsin Liu","doi":"10.2139/ssrn.3492605","DOIUrl":"https://doi.org/10.2139/ssrn.3492605","url":null,"abstract":"This study examines the trade-off between online advertising effectiveness and (do-not-track) privacy regulation. Recent literature on ad-financed business model predicts that consumers who patronize multiple platforms (multi-homing) can have less per-impression value as they may see duplicated ads from multiple sources. The use of tracking technology in the digital space may however eliminate the redundant ad provision at the expense of consumer privacy. The presenting paper provides the first empirical evidence on whether multi-homer’s attention is less valuable in online media market, under FTC’s privacy regulation on tracking. The paper then discusses the potential market outcome if the privacy regulation were removed. The publisher ad data is scraped from BuySellAds and matched with comScore 2016 for consumer multihoming behavior. The study employed a quasi-experiment based on ad location in a webpage to identify the multi-homing effect on ad prices. By finding that the marginal effect of multi-homing (treatment) on ad prices is indeed more negative for the more viewable ads (treated), the paper concludes that consumer multi-homing behavior can increase the tendency of over impressions, and such tendency can decrease advertisers’ valuation of ad slots in the digital display ad market.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132275233","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}
Lending-based real estate crowdfunding, which involves the use of real estate to secure loans, has emerged as a promising alternative with lower risk than peer-to-peer lending. This study provides insights into understanding how lenders’ investment behavior is shaped by various information in such an emerging market. Using a data set from a large platform over 17 months, the authors find that lenders as a whole prefer loans secured by a borrower’s house to those secured by a mortgage, as reflected in quicker and larger lending transactions. Experienced lenders tend to invest more aggressively, in both time and amount, but exhibit a weaker preference for loans secured by a borrower’s house. A rise in housing prices is associated with quicker lending decisions, and this association is found to be stronger for loans secured by a borrower’s house. When stock market volatility is large, lenders tend to slow down their investments; such a tendency is attenuated for loans secured by a mortgage. The authors suggest that lender heterogeneity in responding to different collateral types should be incorporated into the platform’s design of an automatic transaction or a recommender system. Moreover, platform managers should consider economic conditions at the macro level when deploying their marketing strategy.
{"title":"When Online Lending Meets Real Estate: Examining Investment Decisions in Lending-Based Real Estate Crowdfunding","authors":"Yang Jiang, Yi-Chun Ho, Xiangbin Yan, Yong Tan","doi":"10.2139/ssrn.3422669","DOIUrl":"https://doi.org/10.2139/ssrn.3422669","url":null,"abstract":"Lending-based real estate crowdfunding, which involves the use of real estate to secure loans, has emerged as a promising alternative with lower risk than peer-to-peer lending. This study provides insights into understanding how lenders’ investment behavior is shaped by various information in such an emerging market. Using a data set from a large platform over 17 months, the authors find that lenders as a whole prefer loans secured by a borrower’s house to those secured by a mortgage, as reflected in quicker and larger lending transactions. Experienced lenders tend to invest more aggressively, in both time and amount, but exhibit a weaker preference for loans secured by a borrower’s house. A rise in housing prices is associated with quicker lending decisions, and this association is found to be stronger for loans secured by a borrower’s house. When stock market volatility is large, lenders tend to slow down their investments; such a tendency is attenuated for loans secured by a mortgage. The authors suggest that lender heterogeneity in responding to different collateral types should be incorporated into the platform’s design of an automatic transaction or a recommender system. Moreover, platform managers should consider economic conditions at the macro level when deploying their marketing strategy.","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126766960","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}
Gone are the days when cash, bank order, cheque and VISA cards are being used in department stores, supermarkets, etc. Many of us have witnessed the growing use of electronic payments (via the entering into electronic contracts) in virtual and physical shopping outlets.
This article attempts to discuss, in general, Alipay, WeChat Wallet and Octopus (“the three devices”) as electronic platforms, their inceptions, the circumstances under which they were developed, the pros and the cons of such devices in the East. Hopefully, this article may serve as a reference point that may contribute to the further development of electronic (automated) payments in the West in the near future.
WeChat kicked off as a communication APP, similar to WhatsApp which subsequently expanded its scope of operation, to include, inter alia, a Wallet function. WeChat’s Wallet function and AliPay create QR codes on the phone’s screen to be scanned by the producer/service provider’s scanners. All transaction data, including the names of the supplier and customer, the product/service consumed, the amount of payment, is sent immediately via the service provider (which is an intermediate party) to AliPay or WeChat’s central computers. Therefore, these two devices rely on a smooth and speedy transmission of data and the efficiency of the central computers of AliPay or WeChat. Octopus, on the other hand, uses a physical magnetic data storage card commuting on the Mass Transaction Railway (“MTR”) in Hong Kong. An Octopus card user charges his card and the amount of travelling expense is deducted therefrom upon his exiting the gateway of the MTR station. Further on, the Octopus has evolved to becoming a value card that allows its user to purchase items from 7-11 and other retail outlets with additional functions. To date, the maximum value stored is HK$1,000.
The authors wish to present a general picture of the current working of the three devices and focus on such use, application and the drawbacks. If space and time allow, we wish to draw a comparison between the different key working systems currently used in Asia, Europe (in particular, England), USA and Canada.
One must not, and cannot, in the outset postulate that there is a perfect system that can fit us all, nor can one deny that it may be possible to draw up some common denominators that are being shared by the more popular systems.
{"title":"Automated Payment over the Counter– A study of Alipay, WeChat Wallet and Octopus currently used in Mainland China and Hong Kong","authors":"Chee Wai Terry Wong, Tat Chee Tsui","doi":"10.2139/ssrn.3858360","DOIUrl":"https://doi.org/10.2139/ssrn.3858360","url":null,"abstract":"Gone are the days when cash, bank order, cheque and VISA cards are being used in department stores, supermarkets, etc. Many of us have witnessed the growing use of electronic payments (via the entering into electronic contracts) in virtual and physical shopping outlets. <br><br>This article attempts to discuss, in general, Alipay, WeChat Wallet and Octopus (“the three devices”) as electronic platforms, their inceptions, the circumstances under which they were developed, the pros and the cons of such devices in the East. Hopefully, this article may serve as a reference point that may contribute to the further development of electronic (automated) payments in the West in the near future. <br><br>WeChat kicked off as a communication APP, similar to WhatsApp which subsequently expanded its scope of operation, to include, inter alia, a Wallet function. WeChat’s Wallet function and AliPay create QR codes on the phone’s screen to be scanned by the producer/service provider’s scanners. All transaction data, including the names of the supplier and customer, the product/service consumed, the amount of payment, is sent immediately via the service provider (which is an intermediate party) to AliPay or WeChat’s central computers. Therefore, these two devices rely on a smooth and speedy transmission of data and the efficiency of the central computers of AliPay or WeChat. Octopus, on the other hand, uses a physical magnetic data storage card commuting on the Mass Transaction Railway (“MTR”) in Hong Kong. An Octopus card user charges his card and the amount of travelling expense is deducted therefrom upon his exiting the gateway of the MTR station. Further on, the Octopus has evolved to becoming a value card that allows its user to purchase items from 7-11 and other retail outlets with additional functions. To date, the maximum value stored is HK$1,000. <br><br>The authors wish to present a general picture of the current working of the three devices and focus on such use, application and the drawbacks. If space and time allow, we wish to draw a comparison between the different key working systems currently used in Asia, Europe (in particular, England), USA and Canada. <br><br>One must not, and cannot, in the outset postulate that there is a perfect system that can fit us all, nor can one deny that it may be possible to draw up some common denominators that are being shared by the more popular systems.<br>","PeriodicalId":370988,"journal":{"name":"eBusiness & eCommerce eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130875037","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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