This paper reviews the obstacles for an appropriate financial architecture of new economy firms in developing countries by reviewing the theoretical and some preliminary empirical underpinnings of the importance of legal and institutional barriers. Apart from the more conventional institutional and legal barriers, which are advanced by the recent law and finance literature, the analysis in this...

Male psychiatric patients who participated in a token system were exposed to changes in the token price of available commodities. In the first experiment, the price of cigarettes was first raised, then lowered. As predicted, consumption of cigarettes decreased during price increases and increased during price decreases. Contrary to expectations, subjects did not consume less of other commoditie...

The paper studies the patterns of volatility in firm-specific growth rates and stock prices during the early phase of the life-cycle of an old economy industry, the US automobile industry from 1900-1930, and a new economy industry, the US PC industry from 1974-2000. Strikingly similar patterns of volatility are discovered in the early phases of the two industries. The comparison sheds light on ...

In the mid 1990s, Virtual Communities (VCs) were described as a very promising internet-based business model. After the shake-out of the so-called New Economy only a few commercially-oriented Virtual Communities have survived. Many assertions and principles regarding important components and distinct strategies of Virtual Communities have not been empirically substantiated. This paper proposes ...

In less than a decade, sharing economy platforms have fostered competition and redefined industry boundaries in a range of businesses. Two sharing economy pioneers—Uber and Airbnb—are now well-known global giants and leading players in the sector, which is estimated to reach $335 billion by 2025.3 At the other end of the spectrum are small startups focusing on different niches; several hundreds...

Does the CPI Overstate Increases in the Cost of Living? of the biases due to substitution than on the biases due to quality change and the introduction of new goods. Furthermore, the biases associated with substitution are quantitatively small. Second, while quality change and the introduction of new goods potentially pose big problems for the CPI, there is very little hard empirical evidence t...

This paper analyzes housing price dynamics in and outside of Telecom Corridor, a region near Dallas, Texas, with a high concentration of new economy firms. Using separate home price indexes in and outside this region, the paper tests whether home values are more volatile in the new economy area and compares mean-variance efficient portfolio weights on housing. The problem of hedging housing pri...

A major challenge for Agreement Technologies is the combination of existing technologies and reasoning methods. In this paper we focus on the three core layers of the Agreement Technologies tower, called Norms, Organization and Argumentation. We present a framework for arguing about agreements based on norms, roles and dependence, together with a case study from the sharing economy.

The search theory approach to understanding unemployment flourished during the 1980s and 1990s. It has provided economists with a rich set of models for analyzing unemployment and labor market issues more generally. Unfortunately, while economists have found modern search theory to be an invaluable tool, the insights provided by this approach remain largely unfamiliar to noneconomists. This rev...