Reduce Transaction Costs Research Articles

An automated decision-making system employing complex networks and blockchain for the decentralized stock market

Stock markets are inherently complex, posing a challenge for investors who must analyze large amounts of data for strategic decision-making. This complexity, coupled with the centralized control and high transaction costs of traditional stock market systems, highlights the need for strategies that simplify analysis and promote informed, cost-effective investment choices. To address this issue, this work proposes real-time decision-making support for the stock market. The system leverages complex networks to enable a deeper understanding and analysis of intricate market trends and behaviors. It also integrates blockchain technology to decentralize traditional stock market infrastructures, reducing transaction costs and increasing transparency for user transactions and asset exchanges. Our system leverages complex networks to analyze multi-source marketplace data, operating on a cloud-computing infrastructure. This approach simplifies the analysis of intricate market dynamics. We evaluated our proof-of-concept prototype using real-world NASDAQ stock market data, demonstrating its ability to aid investor decision-making and enable decentralized transactions with minimal overhead.

The Evolution of Futures and Options Markets: From Agricultural Roots to High-Frequency Trading

The evolution of futures and options markets from simple agricultural hedging tools to complex financial instruments has been marked by significant technological advancements, particularly the advent of electronic trading and high-frequency trading (HFT). This paper traces the development of these markets, highlighting key milestones and innovations that have shaped their current form. High-frequency trading, while enhancing liquidity and reducing transaction costs, has also introduced significant challenges, including increased market volatility, the potential for market manipulation, and systemic risks, as seen in events like the 2010 Flash Crash. This research provides a comprehensive analysis of the legal and regulatory frameworks governing futures and options markets, with a focus on both Indian and international contexts. It examines the effectiveness of existing regulations in addressing the challenges posed by modern trading practices and explores the need for continuous adaptation in regulatory approaches. Through a detailed review of relevant case laws, statutory provisions, and scholarly literature, the paper identifies gaps in current regulatory practices and proposes recommendations to enhance market transparency, fairness, and stability. The study concludes that while the evolution of futures and options markets has brought undeniable benefits in terms of efficiency and risk management, these markets must be carefully regulated to mitigate the risks associated with high-frequency and algorithmic trading. Adaptive regulatory frameworks, enhanced transparency measures, and international cooperation are essential for ensuring that these markets continue to contribute positively to the global financial system.

Medical treatment loans and their effects on health care utilization and out-of-pocket expenditure: Evidence from an experiment in northern Bangladesh

In low- and middle-income countries, the absence of formal health insurance often forces households to resort to credit for covering healthcare expenses and stabilising consumption. Traditional microcredit offerings frequently impede swift access to funds, limiting households’ ability to mitigate unforeseen health costs. Through a cluster-randomised controlled trial across 24 microfinance branches in northern Bangladesh, we investigated how modifying the features of an existing health credit scheme and reducing transaction costs could enhance credit accessibility. Our findings indicate that relaxing specific scheme features led to increased credit accessibility. This heightened access, triggered by health shocks, corresponded with a rise in utilising formal healthcare services. While we observed an overall uptick in out-of-pocket expenditures, this remained unchanged when excluding the borrowed amount. Our study suggests health credit initiatives promote formal healthcare-seeking behaviours and stimulate higher health-related spending. Immediate access to financial resources alleviates liquidity constraints, enabling increased health spending, facilitating consumption smoothing, and potentially enhancing welfare, particularly where efficient and equitable healthcare financing options are limited.

Developing a custom communication protocol for UAVs: Ground control station and architecture design

Robots have become a prominent research topic across various application domains in recent decades. Additionally, unmanned aerial vehicles (UAVs) are extensively used in both the military and commercial sectors, substantially reducing transaction costs and enhancing safety. Researchers have addressed secure control and communication protocols between software, firmware, and hardware components. This study focuses on the design of three critical elements: the hardware architecture, the software ground control station (GCS), and the firmware tasks within the UAV embedded system. These components are interconnected via an enhanced MAVLink protocol (EMP). Furthermore, various sensors are integrated into the UAV's peripheral devices. We discuss flight control (FC) approaches, such as proportional-integral-derivative (PID) control and the Kalman filter (KF), detailing the process of the hovering algorithm. Additionally, we explain how access is messaged and how message commands are implemented at the protocol layer. We propose a large-scale UAV system architecture suitable for commercial and military applications, supported by a real-life scenario. Experimental results demonstrate the effectiveness and efficiency of the UAV in outdoor activities. Our findings confirm that the proposed UAV architecture is a robust and efficient system in practical applications.

A blockchain-based solution for transparent intellectual property rights management: smart contracts as enablers

PurposeThe purpose of this study is to address the limitations of traditional methods for managing intellectual property rights (IPRs) by proposing a blockchain-based solution. By leveraging blockchain technology and smart contracts, the aim is to create a comprehensive ecosystem that offers advantages such as reduced transaction costs, improved transparency, enhanced security and increased liquidity levels for IP assets.Design/methodology/approachThis paper proposes using blockchain technology to manage intellectual property rights (IPRs) through a smart contract-based ecosystem. It outlines the use of non-fungible tokens (NFTs) on the blockchain to represent IPRs, with smart contracts automating interactions and encoding rules for various processes such as applications, licensing, transfers and royalty distribution. Governance mechanisms, such as decentralized autonomous organizations (DAOs), are employed to allow stakeholders to propose and vote on contract changes, ensuring adaptability. This approach aims to streamline IPR workflows, reduce transaction costs, improve transparency and enhance security.FindingsThe findings of this study suggest that implementing a blockchain-based ecosystem for managing intellectual property rights (IPRs) can lead to various benefits. These include reduced transaction costs, improved transparency, enhanced security, increased liquidity levels for IP assets and streamlined automated processes. The use of non-fungible tokens (NFTs) on the blockchain allows for detailed management, valuation and trading of IPRs. Furthermore, simulation results demonstrate the robustness and efficiency of our proposed ecosystem, outperforming traditional IP management systems in terms of transaction speed and cost-effectiveness. These simulations highlight the practical viability of integrating blockchain technology into IP management workflows.Practical implicationsThe practical implications of adopting this blockchain-based ecosystem for managing intellectual property rights (IPRs) are significant. By streamlining processes, reducing transaction costs and improving transparency and security, organizations can expedite the protection and commercialization of their IP assets. Additionally, the increased liquidity levels and accessibility of IP assets to investors and financiers can spur innovation and economic growth.Originality/valueThis paper contributes to the field by proposing a novel approach to managing intellectual property rights (IPRs) using blockchain technology and smart contracts. By leveraging non-fungible tokens (NFTs) on the blockchain, the proposed ecosystem offers a more efficient and transparent way of managing IPRs, reducing reliance on costly and opaque traditional methods. The potential benefits include improved efficiency, transparency, security and collaboration in the management and commercialization of IPRs.

Blockchain Technology for Secure and Transparent Supply Chain Management

Purpose: The general objective of the study was to explore blockchain technology for secure and transparent supply chain management. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to blockchain technology for secure and transparent supply chain management. Preliminary empirical review revealed that blockchain technology had the potential to transform supply chain management by enhancing security and transparency. It emphasized the benefits of decentralization, immutability, and real-time visibility, which could reduce fraud and improve traceability. However, the study also highlighted challenges such as scalability, interoperability, and regulatory hurdles, which needed to be addressed for widespread adoption. Ultimately, the study suggested that companies investing in blockchain could gain a competitive advantage through increased efficiency and consumer trust, positioning blockchain as a crucial future component in supply chain management. Unique Contribution to Theory, Practice and Policy: Transaction Cost Theory, Social Exchange Theory and Resource-Based View (RBV) Theory may be used to anchor future studies on blockchain technology. The study made significant contributions to theory, practice, and policy. It integrated blockchain into existing supply chain theories, highlighting its role in reducing transaction costs and fostering trust. Practically, it recommended businesses invest in blockchain for enhanced transparency and efficiency, and leverage smart contracts to automate processes. It emphasized the need for supportive regulatory frameworks and addressed legal and ethical implications. The study advised a phased implementation approach and stakeholder collaboration, and suggested future research explore blockchain's long-term impacts and integration with IoT and AI. It underscored the broader implications for global trade and economic development.

The Role of Logistics and Infrastructure in Promoting International Trade

This study aims to explore the role of logistics and infrastructure in promoting international trade. Through systematic analysis of relevant theories and practical impacts, the research finds that logistics and infrastructure play key roles in reducing transaction costs, enhancing trade speed and reliability, and promoting market connectivity and integration. Specifically, an efficient logistics system can optimize transportation, warehousing, distribution, and inventory management, thereby improving the overall efficiency of international trade. Meanwhile, modern transportation, information and communication, and energy infrastructure provide robust support for international trade, facilitating efficient global supply chain operations and economic growth. However, the logistics and infrastructure sectors also face challenges such as infrastructure aging, cross-border logistics barriers, environmental issues, and sustainability concerns. In the future, smart logistics, green logistics, public-private partnerships, and international cooperation will become important development trends. Based on these findings, this paper proposes that governments should formulate supportive policies and improve infrastructure investment mechanisms, while enterprises should enhance logistics optimization and technological innovation. By conducting an in-depth study of the role of logistics and infrastructure in international trade, this research aims to provide theoretical support and practical guidance for policymakers and enterprises, promoting sustainable development in international trade.

Tests for market failures and overcoming transaction costs barriers to market participation in Afghanistan

AbstractSimilar to other fragile poor countries, the majority of the rural population in Afghanistan depend directly or indirectly on small-scale farming for their livelihoods, and poor infrastructure and other barriers restrict access to markets and services, making improving access to local input markets a significant challenge for policymakers aiming to increase productivity. This paper offers empirical evidence addressing two important issues for smallholder participation in input markets: are rural markets incomplete or failing and how do transaction costs affect participation in factor markets? Pooled cross-sectional data from three waves of nationally representative surveys between 2011 and 2016 with a sample of nearly 21,000 households are used. The analysis first tests and rejects the separability hypothesis that household production and consumption decisions are independent which can be interpreted as evidence of market failures. A control function approach with instrumental variables to address endogeneity is employed to estimate household input market participation decisions. Ownership of or access to information and communication technology and transport equipment are used as proxies for transaction costs. Results confirm that lower transaction costs increase input market participation and expenditure on inputs by farm households. Additionally, households with better access to roads and district or provincial market centres have higher market participation and expenditure on input. Reducing transaction costs plays an important role in input use, potentially increasing productivity and incomes.

Perancangan UI/UX pada Toko Rental Outdoor Adventure Sphere Metode Design Thinking

The development of the digital economy in developing countries is expected to encourage economic growth, increase resources and workforce efficiency, provide access to international markets, and reduce transaction costs. The research aims to offer practical and affordable solutions for those who want to explore nature without having to buy their own equipment and provide information and advice on destinations, safety tips and equipment guides, as well as supporting the adventure community. This design uses the Design Thinking method, which is an iterative process that aims to understand users, define problems in depth, and find solutions that meet their needs. The result of this research is the Adventure Sphere Application Prototype, which contains profile, homepage, product display, basket and product video features. It is hoped that this application will make it easier for buyers to rent outdoor equipment and this application will also provide useful information to renters regarding the use of outdoor equipment.

Does regional culture of integrity impact corporate total factor productivity? Evidence from China

AbstractThis study examined Chinese A‐share listed companies in Shanghai and Shenzhen from 2016 to 2020 to explore the relationship between regional culture of integrity (COI) and enterprise total factor productivity (TFP) and the internal mechanism of regional COI on TFP. The findings showed that regional COI is conducive to promotion of TFP. The mechanism test revealed that optimizing the business environment, promoting corporate technological innovation, and reducing transaction costs are three essential mechanisms. Further, the results indicated that the enhancement effect of regional COI on TFP is more significant in non‐SOEs and enterprises with high financing constraints.

Intervention Options for Enhancing Smallholder Compliance with Regulatory and Market Standards for High-Value Fruits and Vegetables in Rwanda and Zambia

Agriculture is vital for economic growth in sub-Saharan Africa. In Rwanda and Zambia, the sector drives economic output, particularly the horticulture sector, which has emerged as a significant contributor to export revenue and employment for resource-poor rural communities. As agri-food value chains become globally connected, there are increasing concerns about food safety and both the social and environmental sustainability benefits of production, which has underscored the need for producers to comply with certain regulatory standards. This paper uses a value chain analysis approach to assess the factors influencing compliance among smallholder fresh fruit and vegetable (FFV) producers in Zambia and Rwanda, and identify practices essential for achieving widespread compliance, to enhance the competitiveness of the sector. The data were gathered from 340 FFV farmers and key informants using structured questionnaires. The results reveal that the value chains for target FFVs are still traditional, predominantly targeting local markets. These markets pose low barriers to entry for smallholders, and often with few safety and quality requirements. As such, there remains a paucity of understanding of market needs and regarding quality and safety standards amongst smallholders, which, coupled with low-input, low-technology farming methods, and inadequate pre- and post-harvest handling, limit the market potential. To bridge these gaps, this study recommends organising farmers into legally recognised entities, to enable access to compliance information, reduce transaction costs, and provide access to high-quality niche markets through public–private partnerships. Countries also need to develop industry codes of practice and quality management systems and support farmers to adhere to them.

On the issues of business negotiation processes and prospects for overcoming them through large language models

This article investigates the potential of large language models in overcoming problems within the business negotiation process. Typical issues encountered in business negotiations at various communication stages, which highlight the necessity for systematic resolution (such as breaches of good faith principles, ineffective communication strategies, lack of clear planning, etc.), are identified. The study focuses on a key negotiation problem related to the increasing transaction costs of businesses due to unmet interaction results. It demonstrates how large language models can optimize the negotiation process at every stage: from preparation (gathering and analysing information, scenario modelling) to conducting negotiations (contextual analysis, proposal formulation) and implementing agreements (execution control, monitoring). The study highlights that large language models can ensure: objectivity and speed in information processing; improved planning and forecasting; enhanced communication efficiency; and reduced transaction costs. The findings of the research conclude that the application of large language models is a promising development direction for optimizing the business negotiation process, contributing to the reduction of transaction costs and strengthening companies’ competitiveness by expanding human capabilities in managing business communications.

Predicting cryptocurrency price trends using artificial intelligence methods

This article comprehensively explores multiple aspects of cryptocurrencies and their price forecasting. Firstly, the article introduces the definition of cryptocurrency and its development process on a global scale, especially focusing on the launch of Facebook Libra and China's central bank digital currency, highlighting the importance and influence of digital currency in the global financial market. Subsequently, the article analyzes the advantages of digital currencies over traditional currencies, including improving economic transaction efficiency, reducing transaction costs and enhancing transaction transparency. Finally, through specific experimental analysis, the effectiveness of using the deep learning model CNN-LSTM to predict the price of Bitcoin is demonstrated, and the directions of future research and optimization strategy are proposed. In summary, this paper comprehensively presents the research status and prospects of cryptocurrency and its price prediction field through systematic introduction and analysis.

Examining the long-run relationship between stock market development and Nigerian economic growth

Purpose This paper aims to examine the long-run relationship between stock market development and Nigerian economic growth from 1980 to 2020. Design/methodology/approach Market capitalization, number of listed companies, total value traded ratio and turnover ratio are used. An autoregressive distributed lag model is used for the analysis. Findings The market capitalization ratio and turnover ratio have positively significant links with economic growth. The number of listed companies has a negative and non-significant impact on economic growth. Total value traded ratio has a negatively significant link with economic growth in the short run. The positive but insignificant relationship between traded value ratio and turnover ratio in the long run growth means that the Nigerian stock market is growth inducing and on the right track as stock market liquidity drives growth. Research limitations/implications The government and Security Exchange Commission should increase the market liquidity level by improving the trading infrastructure. The government and regulatory authorities should improve and effectively implement the existing policies that would ensure stock market growth. This facilitates the investors’ speed to purchase and sell shares. The Securities and Exchange Commission should reduce transaction costs to encourage active trading activities. The market should be diversified with investment instruments such as derivatives, futures and swap options which would limit the adverse effect of listed companies in the market. To increase the stock market liquidity, the Security and Exchange Commission should apply moral suasion to bring private companies that have met certain financial thresholds to convert to public companies. Government should improve on the legislation to encourage more private companies to list on the stock exchange. Originality/value The study findings add value in that stock market development has a positive impact on economic growth in Nigeria.

Why my doctor is a Kantian and my car mechanic is an Aristotelian: bringing marketplace ethics into the classroom

This article makes the case for bringing ethics more explicitly into the economics classroom. It outlines a theory of pluralist ethical institutions, explains how these may solve certain problems in markets and relates them to a model of human behaviour proposed by Adam Smith. Markets operate not only on the foundation of outcome incentives tied to contracts and property rights, but also on the basis of Kantian duty and Aristotelian virtue. These latter concepts explain the development of deeper trust, which reduces transaction costs and risks. Trust can be achieved through reputational effects in repeat trade and from sharing sentiments and principles. Smith’s moral sentiments model describes how individuals come to develop the self-control needed to obey social norms and laws relating to honesty and treating others with respect. The article provides examples of markets that are enhanced by non-consequentialist ethical institutions, as well as some of the constraints imposed by them. It thus provides a strong case for dealing with ethics in standard economics courses and it makes some suggestions for how this can be done simply and effectively.

Analysis of the Impact of Blockchain Technology Adoption on Operational Efficiency and Consumer Trust in Digital Business

This research intends to assess the influence of blockchain technology adoption on operational efficiency and consumer trust in digital enterprises. Blockchain technology, with its decentralized, transparent and safe properties, is predicted to have a favorable impact on several elements of business operations and boost consumer trust. The research method employed is a quantitative approach by collecting data through surveys and interviews with organizations that have incorporated blockchain technology. Data analysis was carried out using descriptive and inferential statistical techniques to test the stated hypotheses. The research results demonstrate that the deployment of blockchain technology greatly boosts operational efficiency, particularly in terms of reduced transaction costs, increased processing speed, and reduced operational errors. Apart from that, customer confidence has also improved dramatically, notably in areas of openness, security and data protection. These findings demonstrate that blockchain technology not only contributes to enhancing the operational performance of enterprises, but also boosting the trust relationship between firms and consumers. The conclusion of this study is that the implementation of blockchain technology has a considerable positive influence on operational efficiency and consumer trust in digital enterprises. Therefore, organizations working in the digital ecosystem are recommended to explore integrating blockchain technology as a strategy to boost competitiveness and consumer trust.

Transnational law as an enabler of digital trade

Abstract History records that trade and trade finance, vital to economic advancement and prosperity, have benefited profoundly from technological evolution and accompanying supportive transnational law. Today, the blossoming of technology, most notably digitalization, has the potential to greatly facilitate both domestic and international trade and, just as importantly, to assist in fulfilling the environmental and social goals critical to meet the UN Sustainable Development Goals and the Paris Agreement. However, obstacles to digital trade arise from the existing legal and regulatory frameworks. Accordingly, legal reforms are overdue. Impetus is now needed to create a fully supportive transnational legal environment. There are several examples of where the technology exists, but the law frustrates its effective deployment. The laws of most jurisdictions require certain trade documents (like bills of lading, payment, and title instruments) to be recorded in a tangible form (paper). The International Chamber of Commerce (ICC) estimates that digitalizing trade documents could reduce transaction costs by 80 per cent and eliminate billions of paper documents in the trade system. A limited number of jurisdictions have reformed their laws to address this gap and innovative private sector actors have taken the initiative to benefit from these reforms. An example includes the development of the Distributed Ledger Payment Commitment by BAFT that relies on narrow but effective changes in Delaware law governing promissory notes; others chose to be governed by Singapore law, which recently amended to align with the Model Law on Electronic Transferable Records (MLETR). Law can be an enabler of digital trade. To this end, work has begun, including by the ICC and the International Institute for the Unification of Private Law. But the reform needs to be accelerated. This article considers the benefits of digital trade, key legal obstacles, and how transnational law can enable innovation and digitalization not only of the vast volumes of paper but of the entire trade and trade finance processes.

Developing China's Hydrogen Economy: National Regulation Through Local Experimentation

AbstractHydrogen is playing an increasingly important role in China's energy and climate policy, with significant implications for the development of a global hydrogen industry. However, China's approach to the regulation of hydrogen, and, in particular, the role of local authorities in promoting hydrogen refuelling stations and fuel cell vehicles, has so far received limited scholarly attention. This article aims to contribute to the literature on hydrogen regulation and to the transnational environmental law scholarship on decentralization by examining how China promotes hydrogen at the national and local levels. The case of China shows how, in jurisdictions with a sufficient degree of decentralization, local initiatives can play a key role in driving the development of hydrogen. By testing different approaches to hydrogen regulation, local experimentation helps to manage the uncertainties associated with this new energy source. At the same time, China's experience confirms the ‘environmental federalism’ theory on the importance of regulatory harmonization to reduce transaction costs and local protectionism. As the Chinese government develops its national regulatory approach on hydrogen, it has the opportunity to take into account both local and international experience and engage with other major economies in an effort to promote an internationally harmonized regulatory landscape.

Advanced AI Solutions for Securities Trading: Building Scalable and Optimized Systems for Global Financial Markets

Integrating Artificial Intelligence (AI) into securities trading software has revolutionized the financial markets by enhancing scalability, efficiency, and optimization. This paper explores the historical evolution and advancements in AI-driven trading systems, emphasizing their impact on global financial markets. The study investigates how machine learning, deep learning, and other AI technologies enable sophisticated trading strategies, improve market liquidity, and reduce transaction costs. It also addresses the challenges AI integration poses, including decision-making opacity, bias, increased market volatility, and data privacy concerns. The paper argues for the need for scalable architectures, optimization algorithms, and transparent governance to mitigate these issues. Additionally, human oversight remains crucial for evaluating AI outputs and maintaining accountability. This research aims to provide a comprehensive analysis of advanced AI systems in securities trading, highlighting their potential to enhance market efficiency and stability.

A taxonomy of business models of digital care platforms in Spain

AbstractIn the last few years, the proliferation of digital labour platforms has led to the transformation of business models and labour relations in an increasing number of economic activities, including highly feminized and informal traditional sectors, such as care and domestic work. Drawing on an analysis of 37 digital care platforms in Spain, this research compares the distinctive features and structural power dynamics they engender, and it constructs a taxonomy of business models of these care platforms. By analysing the main features of their operational models, we are capable of distinguishing three main types of platforms: marketplace, on‐demand, and digital placement agencies. First, the paper argues that the distinctive features of each digital platform business model have differentiated impacts on working conditions in terms of access to tasks, remuneration, flexibility and means of control. This differentiation allows us to understand what is transformative and what is continuous in platforms' precarization or formalisation of care work and working conditions of carers, mainly women and migrants. Each business model has its differentiated outcomes in terms of labour control and reorganization of women's and migrants' reproductive work. Second, more broadly, while digital care platforms may have contributed to facilitating workers' access to jobs, reducing transaction costs and standardising processes, this has often been through the creation of more flexible and insecure forms of work and to increased market pressures. Therefore, this study contributes to existing research addressing the degree of formalization of labour relations in digital platform work through a nuanced analysis of their business models.