The paper studies the impacts of an optimal monetary policy on the distribution and production efficiencies by using a framework of multiple types of household and assets. It extends the work of Xiang (2013) by adding a new type of risky asset, known as Lucas tree, into an existing moneybond model. Some new results can be generated by requiring that all asset markets must satisfy the non-arbitrage profit condition. For example, regardless of insufficient liquidity, a zero nominal interest rate as suggested by the Friedman rule becomes an optimal monetary policy that can lead the economy to its full distribution efficiency and also lower its production inefficiency at the same time.

This research analyzes the impact of deterrence incentive on sabotage behavior in rank-order tournament using experimental method. Laboratory findings confirm Becker’s deterrence hypothesis in a tournament setting. Implementing punishment suppresses sabotage behavior. In addition, increasing probability of inspection is more effective than increasing the magnitude of penalty despite equivalence of expected punishment. Furthermore, analysis of the data reveals existence of cognitive biases influencing sabotage behavior. Findings also suggest that perceived legitimacy of the enforced rule and regulations is important. This study supports existing theoretical frameworks pertaining to tournament and economics of crime, and also provides policy implications for contest designers.

Established in 1999, Alibaba’s market value reached 231 billion USD in 2004. Taobao.com, including Tmall.com, is Alibaba’s consumer-to-consumer portal. In March 2013, the combined gross merchandise volume (GMV) of Taobao and Tmall exceeded 1 trillion CNY. Alibaba Group has developed its own third party payment – Alipay, based on big data analysis – to ensure a safe and clear payment environment for the privacy concerning customers. The logistics industry bonds with online sales tightly. A number of logistics companies seize the opportunity and gain benefits from the booming sales volume. This paper aims to explore the integration of e-commerce, third party payment, and the logistics industry. However, besides the prodigious development of those industries, they have their own limitations. This paper analyzes the limitation of Taobao.com, Alipay, and the logistics industry as well as the dilemma they are facing. Important public policy concerns are discussed accordingly.