We focus on asymmetric games on networks with two types of players characterized by their different intrinsic preferences. In general, it is NP-hard to calculate a pure strategy Nash equilibrium (PNE) for an asymmetric network game, which makes us difficult to predict the evolutionary outcome. In this paper, we study the asymptotic behavior of the tempered best response dynamics (tBRD). We develop an approximate approach that can transform the tBRD into a system of deterministic ordinary differential equations (ODE) for 2 × 2 asymmetric games with arbitrary payoff values and network structures. This then allows us to evaluate the effect of network structure on the evolutionary outcome without calculating the PNE. We highlight the importance of the network homophily index in the strategy evolution. For games with strategic complements, a lower homophily index promotes coordination. In contrast, games with strategic substitutes have a unique stable equilibrium for a higher homophily index and have two stable eq

Chinese cosmetics industry has made a major contribution to the Asian beauty and personal care market growth through e[1]commerce, digitalization and online interaction to maximize customer engagement. The online media have become a part of the daily life of every individual in society and it offers high coverage across the boundaries for customer interaction. Inspired by this vast dispersion of the effectiveness of digital technology, this study aimed to investigate the impact of the use of e-commerce on customer engagement. In this domain, the study designed the conceptual framework in which digital marketing was designated a mediating role and customer relationship management and customer purchase intentions were used as the moderators on the mediation impact. In the SEM results, the study encountered significant results for the direct and indirect effects, meanwhile, the moderators were insignificant. In the implications and contributions, the study revealed that the use of e-commerce is a robust strategy

We investigate the prevalence and persistence of short squeezes and the corresponding economic consequences on the stocks being squeezed. Using daily short sale data, we provide evidence that a short squeeze on average subsides within seven trading days and can be driven by both the capital constraint of the short sellers and the short sale constraint of the underlying stocks. The risk of being squeezed is higher during major macroeconomic events. Further analyses reveal that squeezed stocks experience an increase in the demand for and the cost of borrowing the shares and in trading volume, idiosyncratic volatility, and abnormal returns.

Inequality is a longstanding concern, yet how the rapid advancement of financial technology could possibly reshape inequality in the financial market remains unclear. This study analyzes wealth inequality dynamics among Chinese households during the COVID-19 pandemic, using random sample data collected from a quarterly online survey on a big tech platform. Our findings reveal that families with middle-level wealth incurred substantial losses, whereas wealthier families experienced relatively minor reductions in wealth and were able to recover from the situation swiftly. Despite this, our study indicates that digital wealth management, as channeled via major Chinese digital platforms, mitigated the rising wealth inequality triggered by the pandemic. This is presumably because digital finance improves accessibility to assets with lower risks for middle-level wealth groups. Our study has strong policy implications, namely that regulations on digital financial platforms should not underestimate the beneficial imp

This research examines the effects of gift prices on recipients’ gratitude. Five studies show an inverted U-shaped relationship between gift price and recipients’ gratitude. Recipients are more likely to appreciate gifts of monetary value that align with their expectations than inexpensive or expensive gifts whose values do not meet the recipients’ expectations. Two parallel underlying mechanisms explain the inverted U-shaped relationship: when gift prices are lower than expected, recipients perceive givers as inconsiderate, and when gift prices are higher than expected, recipients feel indebted. Additionally, we examine two boundary conditions. Compared to North Americans, Asians are more likely to show an inverted U-shaped relationship. In addition, close friends, rather than distant friends, are more likely to show an inverted U-shaped relationship. The paper concludes with a discussion of contributions to the literature on gift-giving and practical implications.

Chinese creators and Douyin (a prominent Chinese short-video platform) are building a strong relationship in cultural production. Based on the social exchange theory, this study tries to explore the process and mechanism of monetization in Chinese platforms. Using the app walkthrough method and in-depth interviews with 19 full-time creators, we contend that Chinese creators and Douyin engage in a repetitive but unequal exchange with the common goal of earning income. Douyin works with creators to cultivate their thirst for revenue over time, while mastering the creative labor, before finally tying them to monetary gains. Douyin not only binds exposure and allocates Internet traffic to new creators, but also develops Dou+, a traffic marketing tool that leverages the affordances of creative work visibility. Douyin first enhances the creators’ income expectations through this step. The platform then directs creators through the Star-Chart content trading system, and establishes the platform-advertiser-creator tr

We examine how natural disasters affect corporate innovation. Using a comprehensive sample of U.S. firms and inventors, we find that natural disasters significantly drop innovation quantity and quality. The results are robust to include a broad set of regional characteristics, matching analysis, and alternative proxies for innovation. These effects persist for up to three years after the disaster. We also provide suggestive evidence that financial constraints due to natural disasters give firms less incentive to innovate. Further analysis shows that natural disasters have impacts on inventor relocation, innovation productivity, and innovation risk.

We construct a theoretical model to interpret the structural shock from the COVID-19 pandemic and the response of local labour market and industry specialization. The empirical study takes the large-scale online labour market of China to analyse firms’ hiring demand for 20 industries across 380 cities with monthly recruitment data from May 2017 to September 2020. Post-event quantitative analysis on job postings and employer demand highlighted that the pandemic resulted in an unemployment shock and industry- and city-level redistribution of the worker. China’s local job market resilience also revealed a regional imbalance, correlated with pandemic risk, city scale and industry structure.