We propose a theory of rational "Rush", emphasizing the quantity of rational over-investment in contrast to the theory of irrational price "Bubble". We illustrate an important friction when financing breakthrough innovations: non-excludability and spillover of uncertain knowledge due to...

This research explores and quantifies the downside of technological innovations, especially the negative externality of an innovation interacting with the stock of existing innovations. Using two novel datasets, we make a novel empirical finding that the varieties of innovation-induced risks...

The bargaining process between the platform and users has great impact on the pricing scheme and the successful establishment of a platform. When users receive utilities after paying a initial cost to join the platform, they face the risk of platform's aggressive pricing and are discouraged from...

Using data on 988 peer-to-peer lending platforms in China, we examine cross-side network effects (CNEs)---arguably the most important factor for multi-sided marketplaces---throughout platforms’ lifecycle in a dynamic industry characterized by entries, exits, and network externalities. We find...

In this study, we estimate and investigate the evolution of monetary rules in China and the UnitedStates during the 21st century. Our aim is to examine whether financial stability has been takeninto consideration in practical monetary policy decision making. By proposing a new estimation method...

The digital economy’s functioning hinges upon the close collaboration of various core elements. Data, as a pivotal production factor, derives its value not in isolation but rather from its intricate connection to physical media, like data processors and storage devices. This paper introduces a...

We build an endogenous growth model to study the optimal design of data rights in a data economy. Analysis shows that the duration of data rights protection can significantly affect long-term economic growth through three channels: consumers' privacy concerns, the incentives to develop processed...

This excerpt discusses the differences between traditional economic activities and those in the digital economy, particularly in the realm of data-related industries. In the digital economy, there are distinct characteristics that set it apart, which are mirrored in a new network structure that...