Reduced Form Mortgage Pricing as an Alternative to Option-Pricing Models

This paper extends the traditional hazard technique of estimating prepayment and default by allowing their baselines to be stochastic processes, rather than known paths of time, as is typically assumed. By working in the reduced form, this method offers an alternative to the empirical valuation of mortgages more easily implemented than the standard structural form approach of options pricing.     

Always on across time zones: Invisible schedules in the online gig economy

This study investigates work schedules in online labour markets, operating in 24/7 mode across spatial borders and time zones. Focusing on largely hidden and invisible work of freelancers such as searching for jobs and communicating with clients, the study documents how platforms put pressures and constraints on freelancers’ time through the mechanism of task allocation. We use data on 241,582 timestamped messages posted by 29,759 unique users in 4082 contests on a leading Russian‐language freelance platform to reveal how freelancers’ efforts to get a job make them work nonstandard hours, including evenings, nights and weekends. Freelancers have to be responsive and adapt their schedules to clients’ needs. Freelancers who live in time zones which differ from their clients are particularly disadvantaged, working a greater proportion of nonstandard hours. The findings emerging from the study contribute to current debates on the gig economy and a new time‐work discipline.     

Identifying Fraud in Online Auctions: A Case Study

According to the FBI (IC3, 2011), losses as a result of auto‐auction fraud exceeded $8.2 million dollars in 2011. How can one detect deception in online auction transactions? The authors use a comprehensive case to teach students about deception detection processes, detection cues, and the e‐commerce environment. Students are challenged to make a professional judgment about whether the transaction under consideration is an attempt to deceive. The case is based on a real‐life situation and provides a valuable exercise for business students, educating them in the reality of online auction markets and developing their critical thinking skills. The case may be used with undergraduate accounting majors in Accounting Information Systems classes and with graduate students in an e‐commerce course either as an in‐class assignment or as a term project. Students provided favorable responses as to the value of the case.