In today’s quickly digitizing world, consumers spend an inordinate amount of time on multiple digital screens, from handy smartphones and tablets through desktop computers and Internetenabled television. The choice of the screen is mostly driven by the context and availability, and is often sequential in nature. Though the nexus of most digital interactions is the smartphone, many consumers fin...

The Secure Electronic Transaction (SET) protocol has been proposed by a consortium of credit card companies and software corporations to guarantee the authenticity of e-commerce transactions and the confidentiality of data. When the customer makes a purchase, the SET dual signature keeps his account details secret from the merchant and his choice of goods secret from the bank. This paper descri...

We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Buyers can use cash or credit, with the former (latter) subject to the inflation tax (transaction costs). Frictions making the choice of payment method interesting also imply equilibrium price dispersion, and together these deliver closed-form solutions for money demand. The model can ...

Under a given tradable credit scheme, travelers’ loss aversion behavior for credit charging during the route choice process is studied. A disutility function of loss aversion is applied to approach travelers’ different attitudes towards credit loss and gain, and the transaction costs of buying and selling credits are also incorporated in the function. The user equilibrium (UE) and market equili...

Using count data on Indian joint ventures (JVs) and wholly owned subsidiaries (WOS), we present an empirical analysis of FDI-related ownership choices and their relation with host country characteristics and indicators of transaction costs. Our Negative Binomial regression models offer only weak support for the bargaining perspective, according to which JVs should be more likely if the host cou...

Most existing portfolio choice models ignore the prevalent periodic market closure and the fact that market volatility is significantly higher during trading periods. We find that market closure and the volatility difference across trading and nontrading periods significantly change optimal trading strategies. In addition, we numerically demonstrate that transaction costs can have a first order...

Today, more and more companies are providing web-based product configuration systems in order to better meet individual customer preferences. In many cases, pre-defined product specifications are additionally offered to facilitate the corresponding choice decisions. Against this background, we present a Poisson regression approach for analyzing customer preferences and a genetic algorithm for d...

Hospital buyers of medical devices contract with manufacturers with market power that sell differentiated products. The medical staff strongly influences hospitals' choice of devices. Sellers have sought to limit disclosure of transaction prices. Policy-makers have proposed legislation mandating disclosure, in the interest of greater transparency. We discuss why a manufacturer might charge diff...

This paper tackles the problem of composition of transaction services, which are governed by various transaction standards. Among others, we can cite the Object Transaction Service, Java Transaction Service, or Web Services Atomic Transaction. However, the Web Services Atomic Transaction standard encloses legacy transaction standards to support the Web Services application platform. This encaps...