Social network externalities and price dispersion in online markets.

Ample empirical studies in the e-commerce literature have documented that the price dispersion in online markets is 1) as large as that in offline markets, 2) persistent across time, and 3) only partially explained by observed eretailers’ attributes. Buying on the internet market is risky to consumers. First of all, consumers and the products they purchase are separated in time. There is a delay in time between the time consumers pay and the time they receive the orders. Second, consumers and the products they purchase are separated in space. Consumers cannot physically touch or examine the products at the point of purchase. As such, online markets involve an adoption process based on the interaction of consumers’ experiences in the form of references, recommendations, word of mouth, etc. The social network externalities introduced by the interaction of consumer’s experiences reduces the risk of seller choice and allows some sellers to charge higher prices for even homogeneous products. This research aims to study online market price dispersion from the social network externalities perspective. Our model posits that consumers are risk averse and assess the risk of having a satisfactory transaction from a seller based on the two dimensions of the seller’s social network externalities: quantity externality (i.e., the size of the seller’s social network) and quality externality (i.e., the satisfactory transaction probability of the seller’s social network). We further investigate the moderating effect of product value for consumers on the impact of social network externality on online market price dispersion. Our model yields several important propositions which we empirically test using data sets collected from eBay. We found that 1) both quantity externality and quality externality of social network are salient in driving online price dispersion, and 2) the salience of social network externality is stronger for purchase behavior in higher value product categories.network externalities, price dispersion, online markets, word of mouth

Social network externalities and price dispersion in online markets

Ample empirical studies in the e-commerce literature have documented that the price dispersion in online markets is 1) as large as that in offline markets, 2) persistent across time, and 3) only partially explained by observed eretailers’ attributes. Buying on the internet market is risky to consumers. First of all, consumers and the products they purchase are separated in time. There is a delay in time between the time consumers pay and the time they receive the orders. Second, consumers and the products they purchase are separated in space. Consumers cannot physically touch or examine the products at the point of purchase. As such, online markets involve an adoption process based on the interaction of consumers’ experiences in the form of references, recommendations, word of mouth, etc. The social network externalities introduced by the interaction of consumer’s experiences reduces the risk of seller choice and allows some sellers to charge higher prices for even homogeneous products. This research aims to study online market price dispersion from the social network externalities perspective. Our model posits that consumers are risk averse and assess the risk of having a satisfactory transaction from a seller based on the two dimensions of the seller’s social network externalities: quantity externality (i.e., the size of the seller’s social network) and quality externality (i.e., the satisfactory transaction probability of the seller’s social network). We further investigate the moderating effect of product value for consumers on the impact of social network externality on online market price dispersion. Our model yields several important propositions which we empirically test using data sets collected from eBay. We found that 1) both quantity externality and quality externality of social network are salient in driving online price dispersion, and 2) the salience of social network externality is stronger for purchase behavior in higher value product categories

Confianza y capital social: evidencia para México = Trust and social capital: evidence for Mexico

Abstract From an economic perspective, trust among members of a society is associated with the efficient functioning of markets, contract reinforcement and in general with the capacity to generate development and welfare. In this article we empirically explore the determinants of trust in Mexico; in particular we isolate the relation among two measurements of social capital, one for the individual and another for their environment. Our results show that trust increases with these measurements of social capital, and in the absence of segregation, it is higher in smaller communities, at older ages and for inhabitants of the center-occident, among others. Resumen Desde la perspectiva económica la confianza entre los miembros de una sociedad está asociada al funcionamiento eficiente de los mercados, al reforzamiento de contratos y, en general, a la capacidad para generar desarrollo y bienestar. En este artículo exploramos empíricamente los determinantes de la confianza en México, en particular, aislamos la relación entre dos medidas de capital social, una para el individuo y otra para su entorno. Nuestros resultados muestran que la confianza aumenta con estas medidas de capital social y con ausencia de segregación es mayor en comunidades pequeñas, a mayor edad y para habitantes del centro-occidente, entre otras

Citizen participation and voluntary payment of taxes

Prácticamente la totalidad de los trabajos sobre cumplimiento tributario que han tenido presente a la participación ciudadanía se han limitado a analizar las diferencias entre residir o no en un sistema de democracia directa. Sin embargo, este hecho deja al margen la propia participación individual, dado que solo se considera la existencia de oportunidades para participar. Con el presente trabajo se pretende dar un pequeño paso aportando nueva evidencia empírica. Partiendo de una muestra de 530 observaciones y mediante un modelo probit se concluye que los individuos que participan activamente en la vida pública muestran una mayor conciencia fiscal.Practically, most of the studies on tax compliance and citizen participation have limited to analyze the effect of residing in direct democratic regions on tax attitudes. However, these studies leave aside the individual participation itself, in other words, they consider the existence of the opportunity to participate. The present work aims to take a step forward by providing new empirical evidence about individuals participation. Based on a sample of 530 observations obtained through a questionnaire and using a discrete probit type election model, it is concluded that individuals who participate actively in public life show greater fiscal awareness than the rest

Atitudes e causas de fraude entre os estudantes universitários do México: um estudo exploratório

This study extends the current state of literature on academic dishonesty, modeling the likelihood to engage in this practice in a private university in Mexico. Ten in-depth interviews with professors and college students were applied as a qualitative phase of the research in order to understand habits, expe- riences and perceptions about academic dishonesty. A survey with two hundred college students indicate that the number of incidents of cheating is significantly higher than standard estimations in the United States; the quality of students’ so- cial networks is the most important factor explaining chea- ting and honor codes, whose perceived enforcement does not deter cheating.Cette étude élargisse la littérature qui existe par rapport à la fraude académique et crée un modèle de la probabilité que les étudiants tombent dans ces pratiques dans une université privée mexicaine. Une phase qualitative de la recherche inclue dix entre- tiens en profondeur avec les professeurs et les étudiants, pour comprendre les habi- tudes, les expériences et les perceptions par rapport à la fraude académique. Une enquête réalisée parmi cents étudiants de niveau universitaire a montré que le numé- ro de cas de fraude est significativement plus haut que celui estimé dans les stan- dards utilisés aux Etats-Unis. La qualité de l’entourage sociale des étudiants est le fac- teur le plus important pour expliquer pour- quoi on perçoit que les codes d’honneur et malhonnête ne dissuadent pas de tomber dans la fraude académique.Este estudio amplía la literatura existente sobre fraude académico y crea un modelo de la probabilidad de que los estudiantes incurran en estas prácticas en una universi- dad privada mexicana. Una fase cualitativa de la investigación incluyó diez entrevistas a profundidad con profesores y estudian- tes, para comprender los hábitos, las expe- riencias y las percepciones sobre el fraude académico. Una encuesta realizada entre cien estudiantes de pregrado reveló que el número de casos de fraude es signifi- cativamente más alto que los estándares estimados en Estados Unidos. La calidad del entorno social de los estudiantes es el factor más importante para explicar por qué se percibe que los códigos de honor y deshonestidad no disuaden de cometer fraude académico.Este estudo amplia a literatura existente sobre fraude acadêmica e cria um modelo de probabilidade sobre a participação dos estudantes em tais práticas numa univer- sidade privada mexicana. Uma fase quali- tativa da pesquisa incluiu dez entrevistas em profundidade com os professores e estudantes, para compreender os hábitos, as experiências e as percepções sobre a fraude acadêmica. Uma enquete realizada com cem estudantes de graduação revelou que o número de casos de fraude é signifi- cativamente mais alto que os padrões es- timados nos Estados Unidos. A qualidade do ambiente social dos estudantes é o fator mais importante para explicar por que se percebe que os códigos de honra e deso- nestidade não dissuadem de cometer frau- de acadêmica

Efectos de corto plazo de los shocks en los precios internacionales de los productos agrícolas en México

Se formula un modelo de precios insumo-producto para analizar los efectos de corto plazo de los shocks en los precios internacionales de los bienes agrícolas en México. El modelo considera 51 sectores productivos (agricultura y ganadería desagregada), dos tipos de trabajo (urbano y rural), un tipo de capital, 10 bienes de consumo final y 20 tipos de hogares (deciles de ingreso por estrato socioeconómico). Los principales resultados indican que el efecto del shock sobre el nivel general de precios es del orden de 1.3 por ciento, aun tomando en cuenta los efectos indirectos sobre el precio del resto de los productos industriales. El incremento en el precio afecta relativamente más a las familias de menor ingreso, pero debido a que la rentabilidad del sector agrícola aumenta, el ingreso y el bienestar netos (una vez descontado el aumento en el costo de vida) de las familias del sector rural aumentan. Finalmente, cuando se adoptan políticas de indexación de los salarios para combatir los efectos regresivos en el ingreso real de las familias más pobres, paradójicamente se provoca lo contrario

Demanda agregada y desigualdad regional por género en México

A structural decomposition technique is proposed in order to break down the labor income of men and women in four regions of Mexico, and is linked to a final demand expansion, into three effects: national, regional and technological. The results suggest that labor income multipliers for women are relatively high in services. Government consumption tends to benefit the income of women more, whereas the expansion in investment tends to favor the income of men more. Regional gender equality indices are not sensitive to expansions in the final demand.É proposta uma técnica de decomposição estrutural que permite descompor o ingresso no mercado de trabalho de homens e mulheres em quatro regiões do México, vinculado a uma expansão na demanda final em três efeitos: nacional, regional e tecnológico. Os resultados indicam que os multiplicadores do ingresso das mulheres são relativamente altos no setor de serviços. O consumo do Governo é o que impacta mais no ingresso das mulheres; por outro lado, a expansão do investimento favorece mais o ingresso dos homens. Os índices de igualdade de gênero regionais são pouco sensíveis a expansões na demanda final.Se propone una técnica de descomposición estructural que permite descomponer el ingreso laboral de hombres y mujeres en cuatro regiones de México, vinculado a una expansión en la demanda final en tres efectos: nacional, regional y tecnológico. Los resultados indican que los multiplicadores del ingreso de las mujeres son relativamente altos en servicios. El consumo del Gobierno es el que impacta más el ingreso de las mujeres; en cambio, la expansión de la inversión favorece más el ingreso de los hombres. Los índices de equidad de género regionales son poco sensibles a expansiones en la demanda final