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Theme 2 | Education And Trade

23 AUGUST 2021 (Monday) - Singapore Time
16:00 - 17:30 THEME 2 | EDUCATION AND TRADE
Moderator: Lim Shi Ying The Language of Institutional Design: Text Similarity in Preferential Trade Agreements

Kim Sooyeon | Head, Department of Political Science, NUS

Thiyaghessan S/O Poongundranar | University of Chicago

Faking Orders on E-commerce Platforms

Jin Chen | Department of Information Systems and Analytics, NUS

Exploring the Regional Spillover Effects of University AI Research on the Creation and
Performance of AI Start-ups
Huang Ke-Wei | Department of Information Systems and Analytics, NUS

Abstracts

The Language of Institutional Design: Text Similarity in Preferential Trade Agreements
Associate Professor Kim Sooyeon and Thiyaghessan S/O Poongundranar

This paper analyzes the degree of text similarity across 325 preferential trade agreements (PTAs). It investigates the extent to which countries rely on templates of trade liberalization as they are reflected in the texts of trade agreements. Countries employ templates to advance particular trade liberalization agendas through PTAs, and perhaps as a consequence templates are likely to exhibit high degrees of path dependence. This paper advances the argument that the variation in PTA texts differs across main documents and annexes. Main documents are expected to exhibit higher degrees of similarity as they are likely to contain the broad templates in trade rules, while annexes are more tailor-made for trade partners because they specify exemptions and particular sectors of liberalization. The results of the analysis show that the extent of text similarity is higher in main documents than in annexes, and overall levels of text similarity are lower than expected. The paper also finds that main documents contain the language of templates, while annexes appear to contain provisions for specific goods and sectors.

Faking Orders on E-commerce Platforms
Assistant Professor Jin Chen

"Brushing"---online merchants placing fake orders of their own products---has been a widespread phenomenon on major e-commerce platforms. One key reason why merchants brush is that it boosts their rankings in search results. On the one hand, products with higher sales volume are more likely to rank higher. On the other hand, rankings matter because consumers face search frictions and narrow their attention to only the few products that show up at the top. Thus, fake orders can affect real consumer choice. We focus on this search-ranking aspect of brushing and build a stylized model to understand merchants’ strategic brushing behavior as well as how it affects consumers. We consider a high-type merchant (who sells a more popular product) and a low-type merchant (who sells a less popular product) competing on an e-commerce platform where product rankings evolve over time. We find that if brushing gets more costly for merchants (e.g., due to tougher regulations), it may sometimes surprisingly harm consumers as it may only blunt brushing by the high-type merchant but intensify brushing by the low-type merchant. If search is less costly for consumers (e.g., due to improved search technologies), it may not always benefit consumers, either. Moreover, the design of the ranking algorithm is critical: placing more weight on sales volume-related factors may trigger a non-monotone change in consumer welfare; tracking recent sales only as opposed to cumulative sales does not always dial down brushing and, in fact, may sometimes cause the low-type merchant to brush more.

Exploring the Regional Spillover Effects of University AI Research on the Creation and Performance of AI Start-ups
Associate Professor Huang Ke-Wei

This paper investigates whether AI academic research in universities can create regional knowledge spillover effects that improve the quantity and quality of AI start-ups. Using data of AI start-ups from Crunchbase.com and AI conference publications from CSRankings.com, we find that knowledge spillovers from university AI research indeed contribute to the creation and VC financing performance of local AI start-ups at the MSA level in the United States. Moreover, we find significant heterogeneous effects of knowledge spillovers in different AI subfields. In this study, we count 13 premium conferences publications in all AI subfields including computer vision, natural language processing, and data mining. The knowledge spillovers from research published in machine learning conferences, including only ICML and NIPS, have the strongest effects on the creation and performance of AI start-ups. In general, we find evidence that impactful conferences exhibit stronger spillover effect. At the same time, surprisingly, our results suggest that knowledge spillovers from theoretical- oriented conferences have stronger effects whereas broad-based applied conferences, such as KDD, AAAI, and IJCAI, produce only marginally significant effect.

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