Article
Green & Sustainable Science & Technology
Feng Xue, Guangyu Chen, Shanming Huang, Huan Xie
Summary: This research compares and analyzes the incentive contract design under symmetric and asymmetric information, and proposes a two-stage incentive contract with multiple indicators under asymmetric information. The research results show that a stage-wise multiple-indicator incentive contract can effectively encourage subcontractors to disclose social responsibility information, reduce information asymmetry, enhance social responsibility and improve overall project efficiency.
Article
Management
Jingxing (Rowena) Gan, Gerry Tsoukalas, Serguei Netessine
Summary: Traditional two-sided platforms and decentralized platforms have different approaches to generating revenue and promoting growth. Properly designed initial coin offerings (ICOs) can address market failures and incentivize long-term platform building through different mechanisms. Commission contracts benefit founders with higher profits, while token retention improves service levels for the benefit of users and service providers.
MANAGEMENT SCIENCE
(2023)
Article
Green & Sustainable Science & Technology
Chunhua Tang, Huiyuan Zhang, Jiamuyan Xie
Summary: This paper investigates the contract design, optimal financing, and pricing decision of the leading agricultural enterprise in the presence of private information about the farmer's level of effort. The study finds that the introduction of agricultural income insurance can improve the farmer's effort level and transfer risks, while different types of contracts have varying effects on the interests of the participants.
Article
Business, Finance
Arvid O. Hoffmann, Stefanie Kleimeier
Summary: The study focuses on how banks finance R&D intensive firms and finds that lead arrangers tend to retain a larger share of syndicated loans when lending to these firms. Patents can help mitigate moral hazard issues, as banks retain a smaller share of loans to R&D intensive firms if they have patents as a signal of invention quality.
FINANCE RESEARCH LETTERS
(2021)
Article
Economics
Yao-Tung Chen, Sheng-Chang Peng
Summary: Based on data from an anonymous but renowned life insurance company in Taiwan, this paper uses R programming language to conduct a big data analysis, validating the existence of information asymmetry in medical insurance and drawing meaningful conclusions.
Article
Economics
Olivier Mesly, Hareesh Mavoori, Nicolas Huck
Summary: This paper examines the possibility that market failures may be explained by predatory information flows between sellers and buyers, and the behavioral pattern of financial spinning. The Global Financial Crisis serves as an example, demonstrating how sellers of toxic products may disconnect buyers from their financial needs, leading to market failure. The study contributes to using Lotka-Volterra equations and trajectory exploration to improve seller-buyer relationships and understand market failure.
JOURNAL OF THE KNOWLEDGE ECONOMY
(2023)
Article
Green & Sustainable Science & Technology
Ruwen Tan, Yilin Wu, Peiyang Su, Rujin Liao, Jing Zhang
Summary: A lack of steady supply of high-quality construction and demolition waste impedes recycling industry growth, while information asymmetry makes it difficult for recycling companies to devise effective incentive strategies for collectors. To address this, a dynamic moral-hazard model is proposed to determine the optimal incentive mechanism, and Bayesian learning is used to update collectors' private information estimation. Findings show that collectors are consistently motivated to provide high-quality waste voluntarily under the optimal mechanism. The study highlights the importance of interactive decision-making for improving recycling management.
JOURNAL OF CLEANER PRODUCTION
(2023)
Article
Computer Science, Information Systems
Jiaming Fang, Lu Liu, Md. Altab Hossin, Chao Wen, Guoen Xia
Summary: In this study, a panel dataset of 15988 videos from 6826 online video producers across 17 markets on a large video-sharing platform was used to examine the impact of social signals on video viewership, with a focus on the moderating role of market competition. The results indicate that social presence and endorsement are critical signals that viewers consider in predicting viewing experience and video content quality. Importantly, the effectiveness of these signals on video viewership is influenced by the platform's market competition conditions at the producer and product level. Specifically, in highly competitive markets at the product level, social presence and social endorsement have a less positive impact on video viewership compared to low competitive markets. Conversely, markets with high concentration at the producer level increase the impact of these signals on video viewership compared to markets with low concentration.
INFORMATION PROCESSING & MANAGEMENT
(2023)
Article
Business
Yanfen Zhang, Qi Xu, Guoqing Zhang
Summary: Live streaming commerce is gaining popularity as a new online selling channel and creating a vast market worth. However, the cooperation between brand suppliers and streamers may not always achieve a win-win situation due to moral hazard and adverse selection problems. To address this, incentive contracts were designed based on game models to investigate price discount decisions in a live streaming commerce supply chain. The findings showed that high-influence streamers have unavoidable information rent, and brand suppliers can obtain more benefits by cooperating with them and offering low-price discounts.
JOURNAL OF RETAILING AND CONSUMER SERVICES
(2023)
Article
Business
Qiongrui (Missy) Yao, LaKami T. Baker, Franz T. Lohrke
Summary: In the platform economy, digital labor platforms facilitate remote work transactions between platform-dependent entrepreneurs and clients. However, information asymmetry may lead to market failure. This article applies transaction cost economics to develop a framework that explores the conditions for trust to emerge, mitigating market failure threats and improving outcomes.
JOURNAL OF BUSINESS RESEARCH
(2022)
Article
Psychology, Multidisciplinary
Hao Chen, Weiqing Xiong, Peichen Xiong
Summary: This study analyzes the incentives for monopoly and competitive platforms to improve consumer information levels based on two-sided market theory. In a monopoly model, higher information levels lead to lower fees charged to merchants and increased platform profits; while in a competitive model, higher information levels attract more merchants, reduce user fees, and decrease platform profits.
FRONTIERS IN PSYCHOLOGY
(2022)
Article
Business, Finance
Maochuan Wang, Youliang Yan
Summary: This research examines the impact of investor interactive platforms (IIPs) on corporate investment efficiency in China. Despite their intention to bridge information asymmetry between firms and investors through online question-and-answer interaction, IIPs unexpectedly reduce investment efficiency, leading to over- and under-investment. The study employs various empirical analyses to establish the causal relationship, finding that this effect is more pronounced for firms with weak monitoring intensity and high financing constraints. Overall, the findings highlight the negative consequences of IIPs, including information manipulation by managers, which exacerbate moral hazard and adverse selection, thereby undermining investment efficiency.
FINANCE RESEARCH LETTERS
(2023)
Article
Communication
Carlos Diaz Ruiz
Summary: The proliferation of deceptive content online has led to the recognition that some actors in the digital media ecosystem profit from its rapid spread. This is due to market practices that incentivize the creation of viral content, including controversial and deceptive claims.
NEW MEDIA & SOCIETY
(2023)
Article
Economics
Jiajia Tian, Bintao Shao
Summary: The development of digital finance in China has both risks and benefits. It can reduce financial risks by improving access to funds and reducing the reliance on highly leveraged financing. However, the uncertainties in the financial market and the unhealthy state of China's financial market can still pose risks to companies. This study analyzes the impact of digital finance on the financial risks of non-financial companies listed on China's A-share market from 2011 to 2020 and concludes that it can reduce financial risks by mitigating financial constraints and improving information asymmetry.
JOURNAL OF THE KNOWLEDGE ECONOMY
(2023)
Article
Economics
Anil K. Kashyap, Natalia Kovrijnykh, Jian Li, Anna Pavlova
Summary: In this paper, we propose a tractable model of asset management where benchmarking arises endogenously and analyze its welfare consequences. Fund managers' portfolios are not contractible and incur private costs. Incentive contracts for fund managers produce a pecuniary externality through their impact on asset prices. Benchmarking inflates asset prices and leads to crowded trades. This crowding reduces the effectiveness of benchmarking in incentive contracts for others, which fund investors fail to consider. A social planner, recognizing the crowding, chooses contracts with less benchmarking and less incentive provision. The planner also achieves lower asset management costs.
AMERICAN ECONOMIC REVIEW
(2023)