Thinking under P2P - Supervision needs to strengthen the constraints on arbitrage behavior of public service institutions such as online media against innovative industries such as PTP

Due to zero marginal cost, the cost of creating, disseminating and storing information on the Internet is close to zero, which leads to information overload, using explosive information to attract the public's attention, creating eye-catching and sensational effects. This is the so-called "eyeball effect".

It is precisely because of human nature to seek benefits and avoid harm that the audience selectively accepts and disseminates information, causing information transmission based on the Internet to present a skewed distribution. This is the reason why bad news and false news spread quickly, widely and continuously on the Internet.

As individuals and platforms with strong nodes with public influence, they can build and implement arbitrage behaviors based on the bilateral market because they can link other nodes on a larger scale and have a stronger influence on other nodes. In other words, Internet media, based on marketing purposes, has nothing to do with the authenticity and quality of the information itself. Its purpose is only to form information arrival and connection with weak nodes on the network, and to efficiently carry and transmit information, thereby guiding the information acquisition of information receptor nodes and ultimately affecting the transaction decisions of information receptor nodes.

Based on the above, the Internet + media has experienced agency risk and moral risk in the absence of supervision, and is unable to form a self-converging self-discipline incentive mechanism, which reinforces each other. Due to the existence of externalities, the overall deterioration trend of the Internet + media has led to the overall loss of media functionality.

In the absence of information processing and information collection capabilities of the information receiver, even if the original information provider is neutral, the information will tend to be negative during the process of copying, transmission and storage, and the speed, breadth and continuity depend on the information processing and information collection capabilities of the receiver. The lower the information processing and information collection capabilities, the faster and more extensive the information tends to be negative.

Therefore, it is necessary for public supervision to increase the cost of individuals and platforms that are information sources and have strong public influence to create, disseminate, and store bad false news, and to constrain the agency risk and moral risk of information sources.

At the same time, public supervision has the obligation to remind information recipients to improve their information processing and collection capabilities.

Of course, as a content-related entity, the possibility of becoming an arbitrage tool can also be avoided by increasing transparency to the public.

Public services such as the media require public power supervision to constrain arbitrage mechanisms targeting innovative industries such as P2P.

On August 11, the central bank announced that from now on, market makers will provide the China Foreign Exchange Trading Center with a mid-price quotation before the opening of the daily interbank foreign exchange market, referring to the closing exchange rate of the previous day's interbank foreign exchange market, taking into account the foreign exchange supply and demand and the changes in the exchange rates of major international currencies. On that day, the RMB spot price against the US dollar opened 433 basis points lower at 6.2530, and the exchange rate continued to fall during the session. As of the close, the RMB spot price against the US dollar was 6.3231, depreciating by 1134 basis points, a drop of 1.83%. According to the announcement of the China Foreign Exchange Trading Center, today's RMB central parity against the US dollar was lowered by 1136 basis points to 6.2298, the largest drop in history.

In the evening, all kinds of interpretations were flying around on WeChat public accounts and Weibo.

The Internet has made the world flatter. The six-degree theory allows individuals to be interconnected as nodes on the Internet, and the transmission of information seems to be more efficient.

Since the two sessions, the "Internet +" proposed by Premier Li at the two sessions has been constantly hyped by various people. Looking back, the Internet has warmed up many homes along the way. From Internet securities in the middle of the last century, to CDN-based online videos as a killer application, to online education and medical care, the Internet has penetrated more and more scenarios until it is everywhere.

My son knew how to play games on the computer when he was very young. From WII to the current IPad, humans have become more and more dependent on the Internet.

The Internetization of media did not start with the paperless newspapers, but rather with communications. After the rapid development of the communications industry, the marginal benefits of investment decreased, and it had to turn to innovation in value-added services to gain profits, one of which was the mediaization of the communications system.

Mobility enables people to obtain information at any time and anywhere.

Before this, information was physically dispersed on various carriers, in various regions, and in various time periods. The cost of collecting, organizing, processing, and disseminating information was enormous. For data to become information, and for information to become valuable knowledge, the cost cannot be ignored.

One of the characteristics of the information age is that data, information, and knowledge have developed from an era of shortage to an era of oversupply. This is the so-called information explosion. The time and space costs of collecting, organizing, processing, storing, and disseminating data, information, and knowledge have become excessive compared to the demand for individual differences among humans due to the existence of zero marginal costs caused by Moore's Law.

However, human nature has not changed. One of the natures of human beings is to seek benefits and avoid harm. Benefits are taken for oneself; harms are spread out. This asymmetry leads to the fact that people's intuitive pain from their losses is far greater than the pleasure brought by gains. Humans hate pain, whether physical or psychological. Compared with possible gains, humans are more sensitive to losses that may bring pain. Therefore, humans share more information that may bring pain with others, and often ignore information that expresses happiness. In this way, the information disseminated on the Internet is no longer normally distributed but skewed, and is more inclined to bad news, false news, or news that has been processed into these characteristics.

At the same time, due to the inability to spread messages through the Internet, the verification of information requires costs in both time and space. Compared with the zero cost caused by the time and space independence on the Internet, the return on investment in verifying the authenticity of information is close to zero. Therefore, compared to dissemination, no one is verifying the authenticity of the information itself. The deviation of information restoration cannot be corrected.

This is the source of information asymmetry on the Internet. First, it is information overload, and second, it is the skewed distribution of information.

Document No. 221 issued on July 18th confirmed for the first time the status of social financial service institutions of Internet finance. The subsequent judicial interpretation on private lending issued by the High Court on August 6th further defined the legal red line of Internet finance.

This creates the prerequisite for the PTP industry as a whole to obtain official media support. This creates the necessary conditions for media regulatory authorities to intervene in the supervision of relevant market propaganda, thereby increasing the cost of arbitrage behavior by personal media and online media, and providing the possibility of suppressing arbitrage behavior by public services such as media targeting the PTP industry.

We hope that official public opinion tools can make full use of the media characteristics of Internet tools to create a good atmosphere for industry innovation. More importantly, we hope to continue to effectively educate and protect financial consumers (investors) and find a balance between innovation risks and investor protection.

Public services such as the media require public power supervision to constrain arbitrage mechanisms targeting innovative industries such as PTP.

The normal state of the world should be beautiful. It is hard to imagine that evil humans can stay forever in the vast galaxy. Imagine how shocking the scene will be when we board Kepler 452B one day. Where can we place our souls? Where is the other side of the soul?