Re: Some notes on price stabilization indexing

This is a much more fleshed out and realistic (in that more potential for
acceptance by businesses) proposal
than an idea of an "open wallet" I had some time ago, which was essentially
about
publishing the currencies one would be willing to accept and let the
parties negotiate transactions.


2013/12/19 Joseph Potvin <jpotvin@opman.ca>

> This is just a quick update on a topic that I think is interesting to just
> a few on this list.
>
> In preparation for the March meeting in Paris I'll be writing some
> use-case examples, scenarios in which algorithmic pricing with a vendor's
> chosen index would be preferred.  Please contact me if you would like to
> collaborate this topic.
>
> The function use of price indices in web-payments can be summed up as
> follows:
>
> "Using any standards-compliant e-commerce software, a vendor would select
> a reference currency they prefer to use for base price management, and
> identify any other currencies they would be equally willing to accepted in
> payment. They can also select one of the available price indexing services,
> which could be a currency exchange rate, or another type of index more
> relevant to the scope and dynamics of their particular business that would
> enable greater price stability, variability with key input prices, or some
> other criterion.
>
> When a vendor selects a given index service, their e-commerce software
> would automatically query its data feed in order to interpret their base
> price for each good or service from its publication date, to express the
> same real value in each of the other currencies that the vendor has
> identified as acceptable for payment. Price re-calibrations occur on an
> established schedule through time, and each update is digitally signed by
> the vendor's e-commerce software.
>
> A customer browsing the vendor's e-commerce site chooses a payment
> currency that s/he has available to pay, from amongst those identified as
> acceptable to the vendor. (This would be like choosing a mutually
> acceptable language on a multilingual website). The vendor's site then
> displays all prices in that currency to the purchaser.
>
> When the customer activates a purchase, the vendor's shopping cart
> function sends the digitally-signed interpreted price expressed in the
> buyer's chosen currency to the purchaser's own payments processor, local or
> external. Once the purchaser's available funds are confirmed, the
> transaction is processed at both ends.
>
> ***
>
> Some indices being worked on as time permits:
>
> A useful ready-to-go index for any global retail vendor to consider would
> be the "World Price Index":
> http://www.worldeconomics.com/WorldPriceIndex/WPI.efp
> Recently I made arrangements with EF Publishing for direct server queries
> to their WPI for the W3C WebPayments work.
>
> With the founder of http://www.centralbanking.com/ I've been discussing
> the utility and design of an index based on total market capitalization,
> which can be constructed from data at this source:
> http://www.world-exchanges.org/statistics/monthly-query-tool
> Precise methodology for the index is not yet worked out.
>
> The Earth Reserve Index that I and some colleagues are working on (the
> details of which are admittedly tangential to this list) received some
> useful off-list feedback during the past week. I've posted an edited update
> to the Earth Reserve Index concept-of-operations 2-pager here:
>
> http://www.projectmanagementhotel.com/attachments/6030/ERindex_2page_19dec2013aPDF.pdf
> http://www.projectmanagementhotel.com/documents/449
>
>
> Joseph Potvin
> Operations Manager | Gestionnaire des opérations
> The Opman Company | La compagnie Opman
> http://www.projectmanagementhotel.com/projects/opman-portfolio
> jpotvin@opman.ca
> Mobile: 819-593-5983
> LinkedIn (Google short URL): http://goo.gl/Ssp56
>
>
>
> <http://goo.gl/Ssp56>
>