Overview, Framework, and Research Propositions of Secondhand Exchange in the Platform Economy

This chapter describes secondhand exchange in the context of the platform economy. Consumers have long engaged in reselling and buying used items as an alternative to purchasing firsthand items, but researchers have little understanding of how these exchanges are different theoretically from traditional consumption patterns. This chapter presents a clear definition of secondhand exchange and separates it from related concepts, including lateral exchange markets, the sharing economy, access-based consumption, and collaborative consumption. It is suggested that secondhand exchange and related consumer behavior in the platform economy can be understood by considering platform differences related to 1) when and how product ownership is transferred (i.e., direct and indirect), 2) the level of platform intermediation (i.e., low, moderate, or high), and 3) buyers' knowledge of reseller identity (i.e., unknown, obscured, and known). Research propositions are presented for these dimensions for each facet of the consumption process (i.e., buying, owning, and disposal).

Exchange markets

The exchange market is a basic model of an economy, where agents bring resources that they own to the market in order to exchange them for other goods that they need. There is a rich literature on the equilibrium properties of such markets starting with the work of Arrow and Debreu. In this note we survey recent results on proportional response dynamics in exchange markets with linear utilities and suggest several directions for future work.

The impact of a political shock on foreign exchange markets in a small and open economy: A dynamic modelling approach

This paper aims to analyse the dynamics of foreign exchange markets in a country facing political uncertainty that prompt capital outflow from the country1. The economic environment under investigation is characterized by dual foreign exchange markets: a formal or official market for foreign exchange with insufficient and volatile foreign exchange flows, and a strong and thriving informal market, with a higher exchange rate2. The findings in the paper indicate a necessary condition for stabilization of the exchange rate system and that is that the return on investment should exceed the depreciation rate of domestic currency in the formal foreign exchange market. This condition implies that the return on investment should at least compensate investors for the opportunity cost of holding domestic money in their private portfolio wealth. Our findings also indicate that stability of the foreign exchange rates is more difficult to achieve under insufficient official reserves as the recovery process from a shock becomes more costly in terms of time period needed for the adjustment process to complete. The dynamic path of the foreign exchange premium shows that under massive capital outflow caused by economic sanctions, the informal market exchange rate overshoots the equilibrium stationary exchange rate, and the size of such overshooting depends on the size of available foreign exchange reserves held by the central bank.

Good and bad high-frequency volatility spillovers among developed and emerging stock markets

PurposeThis paper examines dynamic return spillovers and connectedness networks among international stock exchange markets. The authors account for asymmetry by distinguishing between positive and negative returns.Design/methodology/approachThis paper employs the spillover index of Diebold and Yilmaz (2012) to measure the volatility spillover index for total, positive and negative volatility.FindingsThe results show time-varying and asymmetric volatility spillovers among the stock markets under investigation. During the coronavirus disease 2019 (COVID-19) pandemic, bad volatility spillovers are more pronounced and dominated over good volatility spillovers, indicating contagion effects.Originality/valueThe presence of confirmed COVID-19 cases positively (negatively) affects the good and bad spillovers under low and intermediate (upper) quantiles. Both types of spillovers at various quantiles agree also influenced by the number of COVID-19 deaths.