Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.072
Haoran Gu
In document No .1 of the Central Committee, the application of digital inclusive finance in rural areas has become a bright spot. This paper analyzes the development of digital inclusive finance in some rural areas of Sichuan Province. The study found that, in terms of service breadth, rural areas differ from urban areas regarding the availability of digital payments. However, thanks to the popularity of smartphones and Internet infrastructure, barriers to obtaining digital inclusive financial services are removed in rural areas. In terms of service depth, rural people are constrained by the inherent concept and the limitations of rural financial institutions. They do not have full access to some deep-level digital inclusive financial services, such as digital credit and digital insurance. In terms of service efficiency, digital inclusive finance does reduce the cost of rural people to obtain the above financial services, but the service efficiency between regions is quite different. In theory, this paper provides methodological guidance for analyzing the development of digital inclusive finance in a certain area. The above three indexes can comprehensively reflect the development of digital inclusive finance in a certain area. In practice, this paper provides useful policy suggestions for rural governments to speed up local digital inclusive finance development.
{"title":"Research for the Development of Digital Inclusive Finance in Rural Areas of Sichuan Province","authors":"Haoran Gu","doi":"10.2991/aebmr.k.210917.072","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.072","url":null,"abstract":"In document No .1 of the Central Committee, the application of digital inclusive finance in rural areas has become a bright spot. This paper analyzes the development of digital inclusive finance in some rural areas of Sichuan Province. The study found that, in terms of service breadth, rural areas differ from urban areas regarding the availability of digital payments. However, thanks to the popularity of smartphones and Internet infrastructure, barriers to obtaining digital inclusive financial services are removed in rural areas. In terms of service depth, rural people are constrained by the inherent concept and the limitations of rural financial institutions. They do not have full access to some deep-level digital inclusive financial services, such as digital credit and digital insurance. In terms of service efficiency, digital inclusive finance does reduce the cost of rural people to obtain the above financial services, but the service efficiency between regions is quite different. In theory, this paper provides methodological guidance for analyzing the development of digital inclusive finance in a certain area. The above three indexes can comprehensively reflect the development of digital inclusive finance in a certain area. In practice, this paper provides useful policy suggestions for rural governments to speed up local digital inclusive finance development.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"68 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126359486","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.009
Bo-Hyuk Lyu
Recently, live streaming e-commerce becomes an increasingly popular approach among Chinese consumers and also gets attention from several scholars. In this study, we examine how interactivity between streamers and buyers during live streaming influences the purchase intention. We empirically measure the model by sending questionnaire to people who have shopped via live streaming shopping platforms. The results show that interactivity can influence purchase intention through social presence and telepresence during live streaming, while trust plays a moderating role.
{"title":"How is the Purchase Intention of Consumers Affected in the Environment of E-commerce Live Streaming?","authors":"Bo-Hyuk Lyu","doi":"10.2991/aebmr.k.210917.009","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.009","url":null,"abstract":"Recently, live streaming e-commerce becomes an increasingly popular approach among Chinese consumers and also gets attention from several scholars. In this study, we examine how interactivity between streamers and buyers during live streaming influences the purchase intention. We empirically measure the model by sending questionnaire to people who have shopped via live streaming shopping platforms. The results show that interactivity can influence purchase intention through social presence and telepresence during live streaming, while trust plays a moderating role.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114345145","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.071
Chengsong Jiang, X. Xv, Ziyan Zhu
As the hotel industry wants to occupy a certain market in the fierce competition, it is necessary to implement an experiential marketing strategy to provide corresponding products and services to enhance customer experience and realize customer experience value. In order to stand out in the fierce competition of the market environment, it is necessary to use a clear marketing mode and pay attention to the differentiated marketing focus and target at the same time as centralized marketing. This paper takes some kinds of AI hotels as the research object. Because of the increasingly fierce competition in the hotel industry, this paper makes a comparative analysis of the implementation of experiential marketing. Based on the problems existing in these hotels, combined with the smart model, this paper constructs the experiential marketing mode. It is hoped that under the current market competition environment, the developed experiential marketing mode can promote the expansion of hotel business, and provide certain guidance for hotels to win more market share.
{"title":"Research on the Construction of Chinese Hotel Experiential Marketing Model Under the Background of AI","authors":"Chengsong Jiang, X. Xv, Ziyan Zhu","doi":"10.2991/aebmr.k.210917.071","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.071","url":null,"abstract":"As the hotel industry wants to occupy a certain market in the fierce competition, it is necessary to implement an experiential marketing strategy to provide corresponding products and services to enhance customer experience and realize customer experience value. In order to stand out in the fierce competition of the market environment, it is necessary to use a clear marketing mode and pay attention to the differentiated marketing focus and target at the same time as centralized marketing. This paper takes some kinds of AI hotels as the research object. Because of the increasingly fierce competition in the hotel industry, this paper makes a comparative analysis of the implementation of experiential marketing. Based on the problems existing in these hotels, combined with the smart model, this paper constructs the experiential marketing mode. It is hoped that under the current market competition environment, the developed experiential marketing mode can promote the expansion of hotel business, and provide certain guidance for hotels to win more market share.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"02 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129881452","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.062
Jiaxin. Xu, Ruoying Han
Under the influence of the birth control carried out for years, the growth rate of newborn baby in China has been on a low state. The consequently sharp increase in proportion of elderly population has aggravated the expenditure of China’s social security and the dearth of labourer, impeding the economic development in China. Particularly in China's basic endowment insurance market, aging population increases the financial burden of young generation and makes the supply of the future endowment insurance fund ever unstable. Meanwhile, social security has also become one of the important factors contributing to the current low fertility rate in China, the popularization of which will further affect the population structure and bring moral hazard to the insurance market itself. In this article, based on data from the China General Social Survey, Poisson regression model and Logit model were established, with propensity score matching method and instrumental variable method adopted to eliminate endogeneity problem. This paper will take whether or not to participate in urban/rural pension insurance as explanatory variable, fertility intention and fertility decision as the explained variables. The results show that residents' participation in endowment insurance has a negative impact on their fertility intention and fertility decision. There is moral hazard existing in China's basic endowment insurance market. As for policy implementation, in alleviating the economical burden brought by pensions, the role of maternity welfare and commercial insurance should be considered comprehensively.
{"title":"Is There Moral Hazard in China’s Basic Endowment Insurance Market?","authors":"Jiaxin. Xu, Ruoying Han","doi":"10.2991/aebmr.k.210917.062","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.062","url":null,"abstract":"Under the influence of the birth control carried out for years, the growth rate of newborn baby in China has been on a low state. The consequently sharp increase in proportion of elderly population has aggravated the expenditure of China’s social security and the dearth of labourer, impeding the economic development in China. Particularly in China's basic endowment insurance market, aging population increases the financial burden of young generation and makes the supply of the future endowment insurance fund ever unstable. Meanwhile, social security has also become one of the important factors contributing to the current low fertility rate in China, the popularization of which will further affect the population structure and bring moral hazard to the insurance market itself. In this article, based on data from the China General Social Survey, Poisson regression model and Logit model were established, with propensity score matching method and instrumental variable method adopted to eliminate endogeneity problem. This paper will take whether or not to participate in urban/rural pension insurance as explanatory variable, fertility intention and fertility decision as the explained variables. The results show that residents' participation in endowment insurance has a negative impact on their fertility intention and fertility decision. There is moral hazard existing in China's basic endowment insurance market. As for policy implementation, in alleviating the economical burden brought by pensions, the role of maternity welfare and commercial insurance should be considered comprehensively.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128206198","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.085
Jiaying Liu, Yiran Liu, Qimao Zhang
The digital transformation allows firms to break up traditional constraints and add value to firms in multiple ways. Many firms are using digital technologies to transform their way of doing business and further enhance their core competitiveness. Among them, Nike is an excellent digital transformer. Therefore, we use a digital transformation framework to explore how Nike goes digital successfully. This research has implications for those companies which are endeavored to looking for ways to implement digital transformation.
{"title":"How Firms Go Digital? The Digital Transformation Path Analysis—— Evidence from Nike","authors":"Jiaying Liu, Yiran Liu, Qimao Zhang","doi":"10.2991/aebmr.k.210917.085","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.085","url":null,"abstract":"The digital transformation allows firms to break up traditional constraints and add value to firms in multiple ways. Many firms are using digital technologies to transform their way of doing business and further enhance their core competitiveness. Among them, Nike is an excellent digital transformer. Therefore, we use a digital transformation framework to explore how Nike goes digital successfully. This research has implications for those companies which are endeavored to looking for ways to implement digital transformation.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131866429","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.055
Zi-Li He, Yi Ding, Wenxuan Liu
This study aims to analyze the opportunities and challenges that Wal-Mart has encountered in its online transformation in China and propose some practical suggestions based on Walmart’s current situation and our results. Questionnaires and comment analysis are the main methods used for data collection. A total of 110 valid questionnaires were received, and trends were analyzed through different age groups. There is a number of age-related shopping habits being found. The younger people pay more attention to product prices and shopping convenience, while older people pay almost no attention to imported products. Comment analysis obtains the attitude and evaluation of the Wal-Mart app by analyzing the frequently used words of consumers for the Wal-Mart shopping app. "Garbage" is the most frequently mentioned word by customers, which means that the customer experience of WalMart's online shopping app is very unoptimistic at this stage. Then, SWOT analysis is used for a detailed analyse of outside challenges of Chinese e-commerce and the internal situation of Walmart’s online shopping platform. Finally, we provide several marketing strategies based on strength-threat and opportunity-weakness, which could provide some practical suggestions of online transformation for Wal-Mart.
{"title":"The States Quo of Walmart and Challenges and Opportunities of Their Online Transformation in China Based on SWOT Analysis","authors":"Zi-Li He, Yi Ding, Wenxuan Liu","doi":"10.2991/aebmr.k.210917.055","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.055","url":null,"abstract":"This study aims to analyze the opportunities and challenges that Wal-Mart has encountered in its online transformation in China and propose some practical suggestions based on Walmart’s current situation and our results. Questionnaires and comment analysis are the main methods used for data collection. A total of 110 valid questionnaires were received, and trends were analyzed through different age groups. There is a number of age-related shopping habits being found. The younger people pay more attention to product prices and shopping convenience, while older people pay almost no attention to imported products. Comment analysis obtains the attitude and evaluation of the Wal-Mart app by analyzing the frequently used words of consumers for the Wal-Mart shopping app. \"Garbage\" is the most frequently mentioned word by customers, which means that the customer experience of WalMart's online shopping app is very unoptimistic at this stage. Then, SWOT analysis is used for a detailed analyse of outside challenges of Chinese e-commerce and the internal situation of Walmart’s online shopping platform. Finally, we provide several marketing strategies based on strength-threat and opportunity-weakness, which could provide some practical suggestions of online transformation for Wal-Mart.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129845365","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.001
Shih-ying Liu, Lin Lu, Yidi Wu
Special purpose entity (SPE) is a type of financial instrument that can legally help companies reduce debt, raise capital, reduce stress, and reduce losses and is widely applied in U.S. companies. However, from Enron Scandal, SPE may also let firms be exposed to certain risks. This paper aims to study the role of SPE in the Enron financial frauds. We also examine the application of SPE in the Chinese market and discuss its future development. A case study was conducted on Enron, and we also studied the current applications of the existing SPEs in China. This paper finds that SPEs did facilitate Enron's growth and contributed to its failure because SPE may lower the cost of financial misreporting. Therefore, we suggest that more subtle regulations should be imposed on SPE. We also review the Chinese SPEs and suggest that relevant regulations should be applied to protect investors' interests.
{"title":"The Role of SPEs in the Enron Scandal and Its Implications for China","authors":"Shih-ying Liu, Lin Lu, Yidi Wu","doi":"10.2991/aebmr.k.210917.001","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.001","url":null,"abstract":"Special purpose entity (SPE) is a type of financial instrument that can legally help companies reduce debt, raise capital, reduce stress, and reduce losses and is widely applied in U.S. companies. However, from Enron Scandal, SPE may also let firms be exposed to certain risks. This paper aims to study the role of SPE in the Enron financial frauds. We also examine the application of SPE in the Chinese market and discuss its future development. A case study was conducted on Enron, and we also studied the current applications of the existing SPEs in China. This paper finds that SPEs did facilitate Enron's growth and contributed to its failure because SPE may lower the cost of financial misreporting. Therefore, we suggest that more subtle regulations should be imposed on SPE. We also review the Chinese SPEs and suggest that relevant regulations should be applied to protect investors' interests.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129956880","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.034
Jiayi Chen
Charity is a very important institution in the public domain. Through donation income, funds are distributed to people in need of help in society. However, according to the theory of public goods, information asymmetry and principal-agent theory, it can be seen that charitable organizations access more information than donors. Accounting statements are the only way for charitable organizations to provide internal information to the society. People’s willingness to donate is strongly related to the integrity of accounting statements. When the organization’s accounting information improves, credibility and transparency of the organization will also increase, which is also an important aspect of the long-term development of charitable organizations. Through discussing the development and current situation of charitable organizations, charitable organizations have insufficient government supervision, inconsistent accounting systems, low awareness of disclosure and the need for adjustment of internal organizations. This paper puts forward three areas that can be improved: setting up a unified accounting information disclosure system, strengthening government management and improving social disclosure awareness.
{"title":"Analysis on the Disclosure Problems of Accounting Information in Charitable Organizations","authors":"Jiayi Chen","doi":"10.2991/aebmr.k.210917.034","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.034","url":null,"abstract":"Charity is a very important institution in the public domain. Through donation income, funds are distributed to people in need of help in society. However, according to the theory of public goods, information asymmetry and principal-agent theory, it can be seen that charitable organizations access more information than donors. Accounting statements are the only way for charitable organizations to provide internal information to the society. People’s willingness to donate is strongly related to the integrity of accounting statements. When the organization’s accounting information improves, credibility and transparency of the organization will also increase, which is also an important aspect of the long-term development of charitable organizations. Through discussing the development and current situation of charitable organizations, charitable organizations have insufficient government supervision, inconsistent accounting systems, low awareness of disclosure and the need for adjustment of internal organizations. This paper puts forward three areas that can be improved: setting up a unified accounting information disclosure system, strengthening government management and improving social disclosure awareness.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"361 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132052879","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.041
Xin Guo, Yixuan Liu, Zheheng Liu
Diversified portfolio is a classic investment strategy which was put forward in the 1950s. However, due to the outbreak of COVID-19 in 2019, the traditional portfolio theory cannot be completely directly applied to the investment. Based on the literature review, this paper sorts out the modern portfolio theory and analyzes three industries of Airline industry, retail industry, and e-commerce industry and the typical companies in these three industries: Delta Airline, Walmart and Amazon. On the one hand, the impact of COVID-19 on the development trend of various industries is analyzed through qualitative methods. The research results show that as the passenger volume of the aviation industry decreasing sharply in 2020 and 2021, it will suffer huge economic losses. For the traditional retail industry, as more people choose e-commerce as well, it will also suffer no small blow; E-commerce, meanwhile, is more likely to survive the recovery. Walmart shares were hit hard by the outbreak, Amazon shares rose sharply because of demand for online shopping, and Delta Airlines shares fell because the city shut down. On the other hand, a quantitative analysis method is applied to generate the correlation matrix of the three companies. A conclusion is drawn that consumer should increase the weight of Walmart in the three stocks, reduce the proportion of Amazon, and reduce the purchase of Amazon Delta Airline. The conclusions of this paper provide practical support and reference for investors' investment.
{"title":"Study on Value Portfolio from the Perspective of COVID-19: A Case Study of Aviation, E-commerce and Retail Industry","authors":"Xin Guo, Yixuan Liu, Zheheng Liu","doi":"10.2991/aebmr.k.210917.041","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.041","url":null,"abstract":"Diversified portfolio is a classic investment strategy which was put forward in the 1950s. However, due to the outbreak of COVID-19 in 2019, the traditional portfolio theory cannot be completely directly applied to the investment. Based on the literature review, this paper sorts out the modern portfolio theory and analyzes three industries of Airline industry, retail industry, and e-commerce industry and the typical companies in these three industries: Delta Airline, Walmart and Amazon. On the one hand, the impact of COVID-19 on the development trend of various industries is analyzed through qualitative methods. The research results show that as the passenger volume of the aviation industry decreasing sharply in 2020 and 2021, it will suffer huge economic losses. For the traditional retail industry, as more people choose e-commerce as well, it will also suffer no small blow; E-commerce, meanwhile, is more likely to survive the recovery. Walmart shares were hit hard by the outbreak, Amazon shares rose sharply because of demand for online shopping, and Delta Airlines shares fell because the city shut down. On the other hand, a quantitative analysis method is applied to generate the correlation matrix of the three companies. A conclusion is drawn that consumer should increase the weight of Walmart in the three stocks, reduce the proportion of Amazon, and reduce the purchase of Amazon Delta Airline. The conclusions of this paper provide practical support and reference for investors' investment.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131075483","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}
Pub Date : 2021-09-18DOI: 10.2991/aebmr.k.210917.016
H. Lu, Mingyan Sun, Yimin Zeng
Nowadays, new technology is growing fast. Shopping and ordering food via the Internet becomes popular in daily life. Especially during the Covid-19 pandemic, the food delivery market was growing bigger and bigger. This paper aims to study the possibility of the food delivery industry becoming monopolized. We analyze the issue from three perspectives. First, market segmentation can have an impact on industry competition. It is difficult to monopolize the food delivery industry because of geographical distance and different consumer preferences among different areas. Second, the food delivery company is a typical two-sided platform. The platform establishes balanced competition. The platform participants are not individuals in the food delivery industry. If the pricing structure changes, it will influence consumers’ demand. Since the competitive pressure in the industry, it is difficult to maintain costumer. We also look at the issue from the angle of game theory. In a Money Burn game, whether the incumbent company becomes a monopoly depends on different situations. In the food delivery industry, each delivery company is a participant, and each participant's gains or losses largely depend on the responses of other participants. The Money Burn strategy would reduce the possibility of new entrances, therefore reinforcing the incumbent company's market power.
{"title":"Will the Food Delivery Industry Be Monopolized?","authors":"H. Lu, Mingyan Sun, Yimin Zeng","doi":"10.2991/aebmr.k.210917.016","DOIUrl":"https://doi.org/10.2991/aebmr.k.210917.016","url":null,"abstract":"Nowadays, new technology is growing fast. Shopping and ordering food via the Internet becomes popular in daily life. Especially during the Covid-19 pandemic, the food delivery market was growing bigger and bigger. This paper aims to study the possibility of the food delivery industry becoming monopolized. We analyze the issue from three perspectives. First, market segmentation can have an impact on industry competition. It is difficult to monopolize the food delivery industry because of geographical distance and different consumer preferences among different areas. Second, the food delivery company is a typical two-sided platform. The platform establishes balanced competition. The platform participants are not individuals in the food delivery industry. If the pricing structure changes, it will influence consumers’ demand. Since the competitive pressure in the industry, it is difficult to maintain costumer. We also look at the issue from the angle of game theory. In a Money Burn game, whether the incumbent company becomes a monopoly depends on different situations. In the food delivery industry, each delivery company is a participant, and each participant's gains or losses largely depend on the responses of other participants. The Money Burn strategy would reduce the possibility of new entrances, therefore reinforcing the incumbent company's market power.","PeriodicalId":371105,"journal":{"name":"Proceedings of the 2021 International Conference on Financial Management and Economic Transition (FMET 2021)","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-09-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122122086","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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