This paper discusses an analytical model for assessing how customer reviews and price can influence market signalling for experience goods with uncertain quality, especially when there is selection bias. The study reveals that reviews, which often are not neutral but reflect selection bias, may benefit consumers by encouraging lower prices and more effective quality signalling. The model highlights the complex role of review bias and how this bias can enhance market efficiency and welfare through strategic interactions between sellers and consumers.

Mutual funds investing in illiquid corporate bonds actively manage Treasury positions to buffer redemption shocks. This practice can cause flow shocks and cause excess return volatility. Excess return volatility is positively associated with bond fund ownership, and this pattern is more pronounced among funds conducting intensive liquidity management. Evidence suggests the COVID-19 Treasury market turmoil, attributed to intensified liquidity management, was an unintended consequence of the 2017 Liquidity Risk Management Rule.

We have been listening to discussions about Labubu’s innovative marketing and customer engagement, given its global success today. However, how can it shed light on Hong Kong’s RWA economy?

As cryptocurrencies, stablecoins are pegged to another asset, typically the US dollar, another fiat currency, or a financial asset such as gold or the US Treasury bonds. The issuance mechanism of stablecoins is characterized as either centralized or decentralized. The supply of stablecoins relies on reserves held in assets or cryptocurrencies to maintain their value.

Typically issued by private institutions, stablecoins are digital currencies that are pegged one-to-one to a fiat currency or collateralized by a reference asset. Currently, 99% of the world’s stablecoins are backed by the US dollar and US dollar-denominated assets, with USDT and USDC dominating the global market and accounting for a combined circulating supply worth more than US$220 billion.

In 2023, the Belgian newspaper Dernière Heure revealed that the ride-hailing platform Uber charges different prices to users based on their phone’s battery level.[1] Specifically, for the same trip, if your phone has 84% battery remaining, Uber charges 16.6 euros; but if you only have 12% battery left, the price rises to 17.56 euros. The logic behind this pricing is obvious: if your phone is about to run out of battery, you’re probably in no position to wait, and have no choice but to accept Uber’s higher price

With its signature jagged-teeth smile and “ugly cute” look, Labubu has quickly turned into a cultural symbol, offering solace to city dwellers. In 2024, the IP of the Monsters series, including Labubu, registered sales of RMB3.041 billion, skyrocketing by 726.6% year on year to become Pop Mart’s most commercially valuable IP (see Note 1). The explosive growth of this creature in the global trendy toys market not only demonstrates the globalization potential of China’s original IP, but also underscores Hong Kong’s unique empowering role as an international platform.

Abstract Artificial intelligence research focuses on machine reasoning and knowledge-based problem-solving. Yet, Einstein observed that knowledge stagnates without human imagination. “Imagination,” he said, “is more important than knowledge. Knowledge is limited. Imagination encircles the world.” In this study, we examined whether machines can have the potential to improve innovation. We employed the validated Divergent Association […]