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Review of Network Economics

Editor-in-Chief: Grzybowski, Lukasz

Ed. by Briglauer, Wolfgang / Goetz, Georg / Pereira, Pedro


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1446-9022
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Volume 15, Issue 3

Issues

Payment Instruments, Financial Privacy and Online Purchases

Yann Balgobin
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
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/ David Bounie
  • Corresponding author
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
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/ Martin Quinn
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
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/ Patrick Waelbroeck
  • Telecom ParisTech, Economics and Social Sciences, 46 rue Barrault, 75634 Paris Cedex 13, France
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Published Online: 2017-09-11 | DOI: https://doi.org/10.1515/rne-2016-0046

Abstract

The protection of financial personal data has become a major concern for Internet users in the digital economy. This paper investigates whether the consumers’ use of non-bank payment instruments that preserve financial privacy from banks and relatives may increase their online purchases. We analyze the purchasing decisions and the use of bank and non-bank payment instruments of a representative sample of French Internet consumers in 2015. Using two econometric methods, namely a two-step regression and a Bayesian Markov Chain Monte Carlo model to account for a potential endogeneity problem, we find evidence that the use of a non-bank payment instrument positively influences consumers’ online purchases.

Keywords: electronic commerce; endogenous binary; financial privacy; payments; variable model

JEL Classification: G21; G23; L81; L86

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About the article

Published Online: 2017-09-11

Published in Print: 2016-09-26


Citation Information: Review of Network Economics, Volume 15, Issue 3, Pages 147–168, ISSN (Online) 1446-9022, ISSN (Print) 2194-5993, DOI: https://doi.org/10.1515/rne-2016-0046.

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