Abstract Blockchains are a new digital technology that combines peer-to-peer network computing and cryptography to create an immutable decentralised public ledger. Where the ledger records money, blockchain is cryptocurrency, such as Bitcoin; but entries can record any data structure, including property titles, identity certification, contracts, so on. We argue economics of blockchains extend beyond analysis general purpose its disruptive Schumpeterian consequences broader idea institutional...

Claims blockchain is more than just ICT innovation, but facilitates new types of economic organization and governance. Suggests two approaches to economics blockchain: innovation-centred governance-centred. Argues that the governance approach — based in institutional public choice most promising, because it models as a technology for creating spontaneous organizations, i.e. economies. Illustrates this with case study Ethereum-based infrastructure protocol platform Backfeed.

Distributed ledger technology, invented for cryptocurrencies, is increasingly understood as a new general-purpose technology broad range of economic activities that rely on consensus database transactions or records. However, blockchains are more than just disruptive ICT. Rather, they institutional governance competes with other institutions capitalism, namely firms, markets, networks, and even governments. We present this view through case study Backfeed, an Ethereum-based platform creating...

Abstract From the adoption of shipping container to coordinated trade liberalization, reductions in costs have propelled modern globalization. In this paper, we analyse application blockchain reduce producing and coordinating trusted information along supply chains. Consumers, producers, governments increasingly demand about quality, characteristics, provenance traded goods. Partially due risks error fraud, is costly produce maintain between dispersed parties. Recent efforts sought overcome...

In the late 1980s and early 1990s electronic markets hypothesis offered a prediction about effect of information technology on industrial organisation, many business writers forecast significant changes to shape nature firm. However, these did not come pass. This paper provides an economic analysis why, using transaction cost framework Ronald Coase Oliver Williamson. Non-hierarchical corporate organisation struggled against contracting problems in presence possible opportunistic behaviour....

Abstract This paper explores the role of artificial intelligence (AI) within economic institutions, focusing on bounded rationality as understood by Herbert Simon. Artificial Intelligence can do many things in economy, such increasing productivity, enhancing innovation, creating new sectors and jobs, improving living standards. One ways that AI disrupt economy is reducing problem rationality. help overcome this processing large amounts data, finding patterns insights, making predictions...

ABSTRACT This paper explores the nature of governance both within and by blockchains economies they support. There is a widespread assumption that proper model for these political. In this paper, I make an alternative claim, namely more accurate blockchain as species corporate governance. Political are similar, but solve different problems with incentives. governance, at its base, seeks to create legitimacy coercive acts. Corporate about solving agency voluntary agreement. explain why crypto...

Abstract On 23 September 1993 the International Olympic Committee announced that Sydney would host 2000 Games. Given keen competition between rival cities bidding for Olympics it could be argued winning city anticipates economic benefits to accrue from hosting games. To extent this is valid, some stock market reaction may found announcement. Testing hypothesis Australia following results are found. First no overall impact on Second, only a limited number of industries portfolios show...

Abstract This paper examines the concept of decentralised autonomous organisations (DAOs), blockchain-based entities intended to operate without central authority or management hierarchy, through lens organisational economics. It compares DAOs with conventional forms and explores whether represent a novel form. The investigates in context electronic markets hypothesis applies theories from Demsetz, Jensen Meckling, Williamson understand their potential long-term viability. A key finding is...

Trust is a fundamental precondition underpinning exchange and economic coordination, but costly to maintain. Given the potential for agents enjoy zero-sum gains by opportunistically betraying trust of exchanging counterparties, an edifice occupational roles, organisational forms institutional practices have emerged in effort uphold trust. In simple terms, there exists “cost trust.” This paper provides numerical estimates cost United States economy, based on attribution labour force data with...

Blockchain technology is the distributed, decentralised ledger underlying Bitcoin and other cryptocurrencies. We apply Oliver Williamson's transactions cost analysis to blockchain consensus mechanism. Blockchains reduce costs of opportunism but are not 'trustless'. show that blockchains trust machines. platforms for three-sided bargaining convert energy-intensive computation into economically-valuable trust.

Identification forms a key part of all but the least sophisticated economic and political transactions. More complex or significant transactions demand more formal identification parties involved. In this paper we develop an institutional as well public choice theory identity. We distinguish between Demsetzian evolutionary view identity 'legal-centric' former view, is contextual, fluid subjective. latter, uniform permanent. Governments have interest in insofar used process tax collection...

Innovation policy is normally evaluated from the welfare perspective of market failure, and therefore focuses on social benefits. This paper adapts Djankov et al. (2003) model comparative costs associated with any institution to analyse specific institutions innovation policy. Six different interventions are arrayed along an Institutional Possibility Frontier. We consider trade-offs as we move around that frontier, suggest further applications this model. conclude by examining rents...

Ludwig von Mises produced an impossibility theorem indicating that economic calculation in the absence of market prices was impossible. This gave rise to 'socialist debate' first half twentieth century. paper makes use insights debate shed light on other situations where decision makers are required allocate resources areas there no prices. A pertinent example would be most corporate social responsibility programs. In local information cannot communicated makers. The further argues...

Blockchains are the distributed, decentralised ledger technology underlying Bitcoin and other cryptocurrencies. We apply Oliver Williamson's transactions cost analysis to blockchain consensus mechanism. reduce costs of opportunism but not "trustless". show that blockchains trust machines. platforms for three-sided bargaining convert energy-intensive computation into economically-valuable trust.