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- E-Finance Lab e.V. (24) (remove)
Nowadays, firms lack information to derive the share of wallet, a vital metric that identifies how much additional spending a firm could capture from each customer. However, decoding Blockchain data enables observing all transactions of each wallet, respectively customer, on the Ethereum NFT market. To shed light on the share of wallet, we analyzed 22.7 million transactions from over 1.3 million customers across eight competing firms on the Ethereum NFT market.
MANY PEOPLE CLAIM THAT FIRMS NEED TO EMBRACE DIGITAL TECHNOLOGIES. YET, WE KNOW LITTLE ABOUT DIGITAL EMBRACEMENT, ITS ANTECEDENTS, AND ECONOMIC CONSEQUENCES. THIS ARTICLE PROPOSES A TEXTUAL APPROACH TO MEASURE DIGITAL EMBRACEMENT AND APPLIES IT IN AN EMPIRICAL STUDY COVERING 2,278 PUBLICLY LISTED U.S. FIRMS OVER 17 YEARS. THE RESULTS OUTLINE A VAST HETEROGENEITY IN FIRMS’ DIGITAL EMBRACEMENT IN AND ACROSS INDUSTRIES. REMARKABLY, A HIGHER DIGITAL EMBRACEMENT PREDICTS HIGHER FINANCIAL PERFORMANCE.
THE PROLIFERATION OF THE INTERNET HAS ENABLED PLATFORM INTERMEDIARIES TO CREATE TWO-SIDED MARKETS IN MANY INDUSTRIES. IN SUCH MARKETS, NETWORK EFFECTS OFTEN OCCUR WHICH CAN DIFFER FOR NEW AND EXISTING CUSTOMERS. THE AUTHORS DEVELOP AN INFLUX-OUTFLOW MODEL TO INVESTIGATE THE CONDITIONS UNDER WHICH THE ESTIMATION OF SAME-SIDE AND CROSS-SIDE NETWORK EFFECTS SHOULD DISTINGUISH BETWEEN ITS IMPACT ON THE NUMBER OF NEW CUSTOMERS (I.E., ACQUISITION) AND EXISTING CUSTOMERS (I.E., THEIR ACTIVITY).
Economic value of data
(2020)
FIRMS COLLECT A LARGE AMOUNT OF DATA BY ENGAGING HEAVILY IN THE COLLECTION AND STORAGE OF ONLINE USER ACTIVITY VIA VARIOUS USER TRACKING TECHNOLOGIES. RECENT POLICY INITIATIVES AIM AT RESTRICTING THIS PRACTICE TO PROTECT CONSUMER PRIVACY. WE STUDY EMPIRICALLY THE CONSEQUENCES OF SUCH RESTRICTIONS FOR ONLINE PUBLISHERS, SUCH AS NEWS WEBSITES, BECAUSE THEY STRONGLY RELY ON REVENUES THAT ARE GENERATED BASED ON USER DATA. WE FIND A PRICE DECREASE OF CA. 30% FOR ONLINE ADS WHEN NO DATA FROM USER TRACKING IS AVAILABLE. THE POTENTIAL REVENUE LOSS COULD BE MORE THAN EUR 14 BILLION IN THE EU AND MORE THAN USD 27 BILLION IN THE US.
AS WE INCREASINGLY RELY ON SEARCH ENGINES AS AN IMPORTANT SOURCE OF INFORMATION TO SUPPORT OUR DECISIONS, SEARCH ENGINES BECAME AN IMPORTANT VENUE FOR FIRMS TO ATTRACT ATTENTION AND SECURE THE LONGEVITY OF THEIR OPERATIONS. THIS ARTICLE DISCUSSES THE RESULTS OF OUR EMPIRICAL STUDIES ON HOW TO CAPTURE A FIRM’S VISIBILITY IN ORGANIC SEARCH AND HOW IT AFFECTS ITS SHORT- AND LONG-TERM FINANCIAL PERFORMANCE.
EMITTERS OF MUTUAL FUNDS AND OTHER FINANCIAL PRODUCTS LACK INFORMATION ABOUT THEIR CUSTOMERS. THEY MOSTLY OPERATE WITH A PRODUCT-CENTRIC MARKE TING CONCEPT. WITH INFORMATION ABOUT CUSTOMERS, THEY COULD SHIFT TOWARDS A MORE CUSTOMER-CENTRIC STRATEGY. HOWEVER, SUCH A STRATEGY DEMANDS INFOR MATION THAT IS HARDLY AVAILABLE. VIRTUAL PORTFOLIOS CAN BRIDGE THIS GAP AND PROVIDE EMITTERS OF FINANCIAL PRODUCTS WITH KNOWLEDGE ABOUT THEIR CUSTOMERS AND THEIR COMPETITORS. THIS ARTICLE ILLUSTRATES THE INSIGHTS THAT VIRTUAL PORTFOLIOS CAN PROVIDE TO EMITTERS OF A MUTUAL FUND.
UNDER LAISSEZ-FAIRE REGULATION, REGULATORS CHOOSE NOT TO INTERFERE BECAUSE THEY SEEK TO STIMULATE INNOVATION AND PROTECT ENTERPRISES FROM THE COSTS IMPOSED BY REGULATORY COMPLIANCE. YET, EMPIRICAL EVIDENCE REGARDING THE ABILITY OF LAISSEZ-FAIRE REGULATION TO ENSURE CONSUMER PROTECTION IS LACKING. THIS ARTICLE TESTS EMPIRICALLY WHETHER THE CURRENT LAISSEZ-FAIRE REGULATION OF PRICE ADVERTISING CLAIMS ON THE MOST POPULAR REWARD-BASED CROWDFUNDING PLATFORM, KICKSTARTER, IS SUFFICIENT TO PROTECT CONSUMERS.
UNDERSTANDING THE COMPETITIVE ENVIRONMENT FOR DIGITAL CONSUMER ATTENTION IS CRUCIAL FOR BANKS’ STRATEGIC ACTIONS. THEREFORE, BANKS NEED TO DETERMINE THE MARKET THEY COMPETE FOR, THEIR SUCCESS ON THIS MARKET, AND WHO THEY COMPETE WITH FOR CONSUMER ATTENTION. USING ORGANIC SEARCH ENGINE DATA, WE PROPOSE A NEW APPROACH TO (I) DEFINE THE DIGITAL MARKET, (II) IDENTIFY THE PLAYERS IN THE MARKET, (III) ESTIMATE THE DISTRIBUTION OF DIGITAL CONSUMER ATTENTION ACROSS BANKS, AND (IV) UNCOVER THE COMPETITIVE MARKET STRUCTURE FOR THE ONLINE RETAIL BANKING MARKET IN GERMANY.
DESPITE AMPLE EVIDENCE THAT CUSTOMERS EXHIBIT HIGHER DISCOUNT RATES THAN FIRMS, IT IS NOT CLEAR HOW DIFFERENCES IN DISCOUNT RATES AFFECT OPTIMAL PRICES, PROFITS, AND WELFARE OF COMPLEMENTARY PRODUCTS (WHICH COULD BE GOODS OR SERVICES). WE SHOW FOR COMPLEMENTARY PROUCTS THAT HIGHER DISCOUNT RATES OF CUSTOMERS DO NOT INCREASE PROFIT OR CONSUMER SURPLUS. FIRMS, INCLUDING BANKS, WOULD BE ADVISED TO SEEK TO REDUCE EXCESSIVE DISCOUNT RATES AMONG CONSUMERS.
FINANCIAL SERVICE PROVIDERS FACE SERIOUS PROBLEMS IF MANY OF THEIR CUSTOMERS LEAVE QUICKLY BECAUSE SUCH CUSTOMERS HAVE LITTLE LONG-TERM VALUE. STILL, CURRENT REPORTING PRIMARILY FOCUSES ON CURRENT PROFITABILITY THAT REPRESENTS THE SHORT-TERM VALUE OF THE CUSTOMERS. THE LONG-TERM VALUE TYPICALLY RECEIVES LITTLE ATTENTION. CUSTOMER EQUITY REPORTING PRESENTS A MEANS TO FOCUS ON THE LONG-TERM VALUE OF THE COMPANY'S CUSTOMERS. IT AVOIDS THE RISK THAT SHORT-TERM PROFITS ARE INCREASED AT THE EXPENSE OF LONG-TERM VALUE CREATION AND ITS CENTRAL METRIC, CUSTOMER EQUITY, SERVES AS AN EARLY WARNING INDICATOR FOR RISK MANAGEMENT SYSTEMS THAT FOCUS ON CUSTOMER LOSS.