The Achilles tendon of dynamic pricing –– the effect of consumers' fairness preferences on platform's dynamic pricing strategies

PurposeIn this paper, the authors study the effect of consumers' fairness preferences on dynamic pricing strategies adopted by platforms in a non-cooperative game.Design/methodology/approachThis study applies fair game and repeated game theory.FindingsThis study reveals that, in a one-shot game, if consumers have fairness preferences, dynamic prices will slightly decline. In a repeated game, dynamic prices will be reduced even when consumers do not have fairness preferences. When fairness preferences and repeated game are considered simultaneously, dynamic prices are most likely to be set at fair prices. The authors also discuss the effect of platforms' discounting factors, the consumers' income and alternative choices of consumption on the dynamic prices.Research limitations/implicationsThe study findings illustrate the importance of incorporating behavioral elements in understanding and designing the dynamic pricing strategies for platforms and the implications on social welfare in general.Originality/valueThe authors developed a theoretical model to incorporate consumers' fairness preference into the decision-making process of platforms when they design the dynamic pricing strategies.

Chinese fintech companies and their “going out” strategies

PurposeThis paper outlines the rapid rise of China's fintech companies over the past decade with a focus on their globalization strategies as they enter their next phase of development.Design/methodology/approachThe author examines China's current and prospective influence on global financial digitization trends, and assesses both domestic and foreign opportunities and challenges confronted by China's fintech firms as they look to expand abroad.FindingsThe Chinese government is experimenting with a radically new fintech system and a regulatory regime in response to it. Chinese ambitions to expand fintech influence through private companies and the state-led “digital RMB” (e-CNY) will likely provoke a wave of “digital protectionism” among developed nations to protect internal digital payments.Originality/valueThis paper is an original economic history research on China's fintech industry.

Empirical study of protective products in an emerging market

PurposeThis paper aims to study the motivations for purchasing protective products.Design/methodology/approachEmpirical microeconomic research.FindingsThe results show that comparing with ordinary families, families vulnerable to environmental conditions, including prepregnant, pregnant and postpartum families, are not intended to consume more protective products. Among the above three types of families, postpartum families consume the most, followed by pregnant families, and prepregnancy families consume the least. The results also showed that a higher level of economic development, more prevalent Internet access and higher levels of education also increase the consumption of protective products.Originality/valueNew dataset and new empirical results.

How should economics view the Internet?

PurposeThe study aims to elaborate the author’s basic viewpoints on how economics should view the Internet from four aspects.Design/methodology/approachThis paper reviews the existing literature on this topic, and summarizes key findings and conclusions of these researches.FindingsThe findings include four major contradictions in economics brought by the Internet, and 12 new changes in economics that needs to be addressed.Originality/valueThis paper provides a clear summary of existing studies on economics’ views of the internet and a prospect for future internet economy research.