Money Burning Research Articles

Is the incumbent crying or laughing: when does the entrant adopt the market expansion entry strategy?

PurposeIt is only logical that a firm aims to make a profit after entering the market. However, some firms enter the market with the goal of market expansion and even burn money to pursue market share, which is counterintuitive in practice. To explore the theoretical foundations behind this rare phenomenon, this paper focuses on discussing the impact of the market expansion entry strategy on the entrant firm and the incumbent firm.Design/methodology/approachUsing a game theory model of a supply chain with an incumbent and an entrant, this paper explores the mathematical conditions for the entrant to adopt either the traditional or the market expansion entry strategy and investigates the incumbent’s benefits and losses under different entry strategies.FindingsThe results show that when the market-expansion effect and the selling price ceiling are moderate, the entrant firm always adopts the market expansion entry strategy, and the incumbent firm obtains a free ride from the entrant firm and benefits from it. The entire industry profits and the industry consumer surplus are increased. In particular, we further investigate the cases in which the incumbent firm has a first-mover advantage or there is a troublesome cost, and the results confirm the aforementioned conclusions.Originality/valueBy considering market share as the entrant’s goal, this paper contributes to the dual-purpose literature. Moreover, based on the model’s mathematical results, this paper offers relevant management insights for the entrant and its stakeholders in the e-commerce platform.

„My money!” Dostoevsky and Chekhov: literary parody

The article analyzes the events of burning money in F. M. Dostoevsky’s novel „The Idiot” and A. P. Chekhov’s „Drama on the Hunt”. The comparison of the events makes it possible to identify not only the characteristic features of the writers’ narrative, but also to approach a holistic understanding of the works. Using the event of burning money, Chekhov reinterprets it parodically. Chekhov reduces the drama, emotionality and high internal tension, which are typical of Dostoevsky’s narrative, to an ordinary context. Money also plays a different role. If Dostoevsky’s money is a test of the human soul, then Chekhov’s money is a symbol of independence, belonging to the powerful of the world. The article discusses the characteristics of Nastasia Filippovna and Kamyshev-Zinoviev and the topic of insanity as well. A comparative analysis allows us to conclude that the analyzed events have different directions.

Do States Really Sink Costs to Signal Resolve?

Abstract Sinking costs to signal resolve has become a vital part of how the field of international relations (IR) understands crisis bargaining. The logic of a resolved state “burning money” to distinguish itself from an unresolved state is well established in theory. But do states choose to sink costs and burn money in practice? We address the question on two fronts. First, we collect and analyze the examples of sinking costs in the mainstream IR literature. We find almost no clear-cut cases of sunk-cost signals. Second, we argue that this is because states typically prefer other signaling strategies. Rather than burning money, states can expend those resources more constructively. In particular, states can invest in improving the probability of victory in war (“balance tilting”), or they can downpay the costs of war. We conclude that balance tilting and downpaying costs plausibly explain a great deal of state behavior in peacetime, in crises, and even in wartime.

EFEKTIVITAS GAYA PEMASARAN BAKAR-BAKAR DUIT OLEH E-COMMERCE DI INDONESIA

This study aims to determine the effectiveness of marketing strategies using the style of burning money by e-commerce to achieve the goals of increasing data, people’s purchasing power using e-commerce, and changing the behaviour of Indonesian people towards digitalization. The literature study method was used to conduct this research due to limited time and resources to conduct case studies or collect data through interviews with e-commerce visitors. The results of the study show the effectiveness of the money-burning marketing style in increasing the number of e-commerce users, increasing the amount of annual e-commerce revenue, and increasing the percentage of activity in the use of e-commerce by internet users in Indonesia.

Is it a true “Burn Money” Strategy to Educate Cashless society? Fintech Analysis as a Means Payment of SMEs in Indonesia

Purpose of this paper: This research aims to analyze the impact of the “burn money” made by Fintech as a means of payment in SMEs that has supported the education to create a cashless society in Indonesia. Methodology: The research uses the literature review method, which is documenting relevant research by quoting authors and years of research. Findings: Consumers can be interested in and ultimately ‘ addicted ‘ to use non-cash payment tools if equipped with various conveniences and benefits. So it can be concluded that the “burn money” strategy conducted by fintech supports the people in Indonesia to form a cashless society. Originality: The importance of conducting a strategy of “burn money” in the form of promotion is important because changing the behavior of consumers is not easy. Limitation: This research only focuses on Indonesia. Fintech is only limited to the three largest Fintech in Indonesia (GOPAY, OVO, and DANA) and focuses on payment services. To conduct further exploration, we can use other methods such as interviews from both the SMEs and the Fintech s in Indonesia to explore or dig deeper into the factors that determine Fintech s to “burn money” to advance the economy of SMEs in Indonesia as a cashless society education.

The Impact of Consumer Purchase Behavior towards User Purchase at E-commerce (Tokopedia)

With the rapid growth of e-commerce, businesses face the challenge of optimizing their strategies to attract and retain customers, while avoiding the common pitfall of burning money due to inefficient practices. Therefore, the treatment for digital customers is different of offline customers. This thesis explores the 7 main factors why users are convenient in shopping via Tokopedia. Through a comprehensive review of literature, the thesis provides insights into the concept of consumers' reasons, needs and why it’s convenient to purchase via Tokopedia. The thesis then tries to give another insight into delivering the best services to its consumers by not only focusing on promotion but from another variable. In particular, the thesis focuses on the impact of trustworthiness, recommendation, promotion, brand ambassador, brand reputation, advertising, and delivery toward consumer purchase using quantitative methods. Quantitative data is obtained through a questionnaire survey with 350 respondents across Jakarta. The thesis will deliver new insights for Tokopedia for the further strategy to not only focus on promotion. The findings of the thesis demonstrate that Tokopedia strategy can focus on developing a more consumer-centric approach bigger than promotion.

Analysis Of Money Burning Practices in Fruit Relailing, Bojonegoro Regency, Perspective Of Sharia Economic Law

The currently developing economy is developing towards a market orientation where competition occurs in various activities within the national economy. Recently, the development of trade in Bojonegoro has developed, including in fruit retail, namely the Fruit Laskar shop which is famous for having several branches in almost all sub-districts in the Bojonegoro district, discount promos and price discounts are given on the grounds that there is an abundance of stock on the market so they can sell below the market and if it is termed using money burning, predatoring pricing or selling at a loss, business actors deliberately sell at a loss to dominate the market and in the long run to get multiple profits. The results of this study contribute a theory regarding demonstrating the concept of money burning business at Fruit Laskar Fruit Retail in Bojonegoro Regency in accordance with Islamic Economic Law. First, because the terms and pillars of Bai Muwada'ah are fulfilled, Second, when a sale and purchase contract occurs between the buyer and seller voluntarily, the third is related to the terms of transparency in the Bai' Muwad'ah contract, it is not an absolute requirement because the seller is not the buyer, and it is proven in the practice does not contain Ikhtikhar and tadris elements and there is no monopoly because in the current era it is difficult for this to happen, the concept of money burning when viewed from the objective of practice is carried out to dominate the market, gain large profits in the future, and this is what is similar or even similar to the capitalist concept , where actually this money burning is only a stepping stone to further become money capital or money accumulative. The money burning carried out by the Fruit Warriors is to increase the number of buyers and expand their market, in the case of burning money in the form of giving discounts, at the beginning the company had to spend money for various purposes from building systems to marketing.

Mediated Information Design with Money Burning for Commitment Power

Mediated Information Design with Money Burning for Commitment Power

Rage against the machine: A money-burning field experiment

Purpose ― This study investigates antisocial behaviour where participants made payoff destruction decisions (“money burning”) that are conditional on the co-participant being a human or a computer. Methods ― This study uses the joy-of-destruction minigame experiment with Indonesian citizens living in Australia as the participants. Regression methods are used to observe whether discrimination occurs and to identify factors associated with antisocial behaviour. Findings ― This study finds money burning against the computer to be more prevalent than against humans. There was very limited support that such behaviour was correlated with demographic characteristics or subjective norms, suggesting that the presence of a computer co-participant drives the result. Implications ― The results have a methodological implication for experimental economics where experimenters should anticipate that computer players may have an unforeseen impact on human behaviour. Policy-wise, the study shows a relatively cohesive community which may be driven by the multicultural policy of Australia. Originality ― This is the first antisocial behaviour economics experiment that includes a computer as a potential co-participant.

Wasteful procedures?

We study investment decisions in organizations with private information in a principal-agent hierarchy. We show how investment decisions can be improved when the principal engages in two-sided money burning through the wasteful involvement in meetings and other procedures even if this is costly for the principal. In fact when this is more costly for the agent, the principal is willing to impose wasteful procedures as it constitutes a credible signal of the value of the investment. We show that this phenomenon of wasteful procedures will be used more in the optimal mechanism when costs of doing so are higher for the agent than for the principal.

Goodwill in communication

An expert advises a decision maker over time. With both the quality of advice and the extent to which it is followed remaining private, the players have limited information with which to discipline each other. Even so, communication in and of itself facilitates cooperation, the relationship evolving based on the expert's advice. We show a formal equivalence between our setting and one of cheap talk with capped money burning, enabling an exact characterization (at fixed discounting) of the expert's attainable payoffs. While an ongoing relationship often helps, our characterization implies that, absent feedback, relational incentives can never restore commitment.

“Burning Money” By E-Commerce Platform Businesses And The Relationship With Selling Loss Based On Business Competition Law In Indonesia

"Burning money" is one of the marketing strategies carried out by the perpetrator’s e-commerce platform in effort to introduce products on the internet and change the habit consumer. Cut programpricelarge on current e-commerce platformsthispopular in societyis one _shapeof "burning money". This program is done in a period of time particular with the objective of interesting the number of customers and achieving high traffic. The existence of “burning money” activity has worries that willcausesomethingcompetitionbusiness not healthy . Piecegreat price _from one _the form of "burning money" is suspectedrelatedwith predatory pricing orselllos. Methodstudyis normative juridical normative research using _regulationlegislation, theorylaw, and the opinion of scholarsrelated to law competitionbusiness and e-commerce. Data will then analyzedwithmetho descriptive analysis _symptom particular in detail, detail, and systematic. There are four aspects that are used for the study of "burning money" by using a massive price-cutting program based on Law Number 5 of 1999 concerning the Prohibition of Monopolistic Practices and Unfair Business Competition and related laws and regulations. As a result , the cut programthe price made by the perpetratore-commerce platform business haspotencycausecompetitionbusinessnohealthywillbutthe impact of the perpetratore-commerce platform business helppublic switch to the digital age throughe-commerce services .

“Burning money” and institutional decline during Zimbabwe’s hyperinflation

ABSTRACT During Zimbabwe’s hyperinflation that ended in 2009, people turned to an illegal round-tripping transaction called ‘burning money’ to preserve purchasing power. The transaction involved illegally acquiring foreign currency at the official rate before converting back to domestic currency in the black market. After computing the widely used ‘Old Mutual’ parallel market rate from the ratio of prices of Old Mutual shares, which traded in London and Harare, we use the daily parallel market and official exchange rate data from 1999 to 2008 to estimate the monthly value of ‘burning money’. While arguably vital, as the transactions were optional, we value them using a single-factor call exchange option formula, which accounts for the volatility of official and parallel market exchange rates and systematic parallel market risk and compare it to changes in the parallel market premium, often used to measure non-unified exchange rates. The ‘burning money’ option values exceed changes in the parallel market premium and respond more to institutional decline, measured using the cash component of M2 equal to one minus the non-cash component of M2 known as Contract Intensive Money, and especially political risk.

STRATEGI PEMASARAN SYARIAH “BAKAR UANG” PADA PERUSAHAAN E-COMMERCE SHOPEE

ABSTRACTIndonesian people are currently enjoying something practical and efficient. This is due to the PPKM period due to covid which occurred one year this year, so entrepreneurs racked their brains to switch to the online system and begin to integrate with their daily lives. From a variety of existing e-commerce, one of which is shopee, which is aggressively burning money and according to the data carried out by iPrice, it is recorded that this e-commerce is capable of carrying out 540 million transactions. The method used in this study uses a descriptive qualitative approach in which data collection is taken from a study of various literatures. The results of the analysis, when other companies are confused about how to maintain their company so as not to go bankrupt, shopee with its strategy is actually burning money to attract people. Shopee's promotion strategy by burning money is very effective. Which makes consumers feel more comfortable using the application, because consumers feel benefited

Banking on the Underworld. A Strictly Economic Appreciation of the Chinese Practice of Burning (Token) Money

The custom of burning mock-money as a symbolic offering of nutrients and sustenance to one's ancestors in the Afterlife is here analysed in terms of its economic meaning and significance. The theme is treated from two different angles. One is that of the political economy of the gift, which concerns itself with the final uses to which society conveys its economic surplus. The other is that of monetary institutionalism, which seeks to understand what the practice itself actually represents in light of the monetary arrangements that rule the economic exchange within the community itself. The thesis is that, at a first remove, the custom appears to fall into the category of “wasteful expenditure,” in that it is not manifestly conducive to any augmentation of the system's efficiency. But on a subtler level, it is not precisely so for two orders of reasons. First, because the custom is habitually accompanied by subsidiary donations; second, because, in this donative moment, the custom importantly reveals, through its conversion of real cash into “sacrificial” token-money, a constitutive yet hidden, property of money, namely its perishability.

Unethical Decision Making and Sleep Restriction: Experimental Evidence

Recent examinations into the cognitive underpinnings of ethical decision making has focused on understanding whether honesty is more likely to result from deliberative or unconscious decision processes. We randomly assigned participants to a multi-night sleep manipulation, after which they completed 3 tasks of interest: imperfectly identifiable dishonesty (the Coin Flip task), identifiable dishonesty (the Matrix task), and anti-social allocation choices (the Money Burning game). We document the validity of the sleep protocol via significantly reduced nightly sleep levels (objectively measured using validated instrumentation) and significantly higher sleepiness ratings in the sleep-restricted (SR) group compared to the wellrested (WR) group. We report that money burning decisions are not statistically different between SR and WR participants. However, regarding honesty, we find significant and robust effects of SR on honesty. In total, given the connection between sleepiness and deliberation, these results add to the literature that has identified conditions under which deliberation impacts ethical choice. When dishonesty harms an abstract “other” person (e.g., the researcher’s budget), reduced deliberation more likely increases dishonesty compared to when harm is done to someone at closer social distance (e.g., another subject). Key Words: Ethical choice, dishonesty, antisocial behavior, sleep.

“Burning Money” and Institutional Decline During Zimbabwe’s Hyperinflation

“Burning Money” and Institutional Decline During Zimbabwe’s Hyperinflation

Positional preferences and narcissism: evidence from ‘money burning’ dictator games

ABSTRACT We study the relationship between positional preferences (i.e., preferences concerning the relative rank or position in comparison to others) and narcissism. We use six ‘money burning’ mini-dictator games to measure positional preferences. Two dimensions of narcissism are distinguished: narcissistic admiration (self-enhancement through searching for being admired) and narcissistic rivalry (self-defence through an antagonistic orientation towards others). Controlling for other relevant individual characteristics such as the Big Five personality traits and gender, we find evidence that narcissistic admiration is a negative predictor and narcissistic rivalry a positive predictor of positional preferences. We further find exploratory evidence that studying business or economics as a major (versus minor) subject is associated with less positional preferences and that the relationships between narcissism and positional preferences are mediated by decision makers’ expectations with regard to other players’ choices.

New land use regression model to estimate atmospheric temperature and heat island intensity in Taiwan

This paper is about spatial–temporal variability of atmospheric temperature across Taiwan, an island with diverse local emission sources partly because of its Asian cultural characteristics. To develop a new land use regression (LUR) model for this study, we used the temperature data collected by the Taiwan Central Weather Bureau from 2000 and 2016, while using the data from 2017 as the external data verification to assess model reliability. Because incense and joss money burning is a cultural-specific emission source in Asia, we further included location of temples, cemeteries, and crematoriums as potential predictors. The overall model performance and tenfold cross-validated are R2 of 0.88 and R2 of 0.87, respectively, which presents a high level of prediction performance. Moreover, we used our LUR model to estimate urban heat islands intensity (UHII) for six metropolises in Taiwan and found Taichung City has the highest UHII value (4.60 °C) among them. These results provide important insights in expanding the remote sensing application on spatial–temporal variation of atmospheric temperature and its further application on UHI effects.

A Literature Review of the "Burning Money" Behavior of Internet Products

This article mainly studies the current status of the operation of the “burning money model” of Internet products, expounds and analyzes the disadvantages of this operating model, studies the practical effects brought by the “burning money model”, and explores the development direction of future Internet products. Domestic scholars have done a lot of research on the development of Internet products in the future and have achieved certain results. This article aims to discuss the development model of China’s Internet products, summarize the current “burning money” behavior in the operation process of Internet products, and combine the development situation of China’s Internet in the new era to make suggestions for the future development of Internet products.