Blockchain and Investment: An Austrian Approach

Forthcoming in the Review of Austrian Economics (with Chris Berg, Sinclair Davidson and Jason Potts). Pre-print available on request. Abstract: Investment is a function of expected profit, which involves calculation of the cost of trust. Blockchain technology is a new institutional technology (Davidson et al 2018) that industrialises trust (Berg et al 2018). We therefore … Continue reading Blockchain and Investment: An Austrian Approach

Blockchain and the Evolution of Institutional Technologies: Implications for Innovation Policy

Forthcoming in Research Policy Abstract: For the past century economists have proposed a suite of theories relating to industrial dynamics, technological change and innovation. There has been an implication in these models that the institutional environment is stable. However, a new class of institutional technologies — most notably blockchain technology — lower the cost of institutional … Continue reading Blockchain and the Evolution of Institutional Technologies: Implications for Innovation Policy

Governing the Entrepreneurial Discovery of Blockchain Applications

Forthcoming in the Journal of Entrepreneurship and Public Policy Abstract: This paper examines the institutional context of the entrepreneurial discovery of blockchain applications. It draws on institutional and entrepreneurial theory to introduce the economic problem entrepreneurship in the early stages of new technologies, examines the diversity of self-governed hybrid solutions to coordinating entrepreneurial information, and … Continue reading Governing the Entrepreneurial Discovery of Blockchain Applications

The Governance of Blockchain Dispute Resolution

Forthcoming in the Harvard Negotiation Law Review Abstract: Blockchain technology acts as infrastructure for self-executing smart contracts. Because contracts are incomplete and some parties are opportunistic, these new contracting possibilities have created challenges of dispute resolution. For instance, will smart contracts be recognised, and any disputes resolved, within the existing courts of jurisdictions? In this … Continue reading The Governance of Blockchain Dispute Resolution

International policy coordination for blockchain supply chains

Published in Asia & the Pacific Policy Studies Abstract: From the adoption of the shipping container to coordinated trade liberalization, reductions in trade costs have propelled modern globalization. In this paper, we analyse the application of blockchain to reduce the trade costs of producing and coordinating trusted information along supply chains. Consumers, producers, and governments … Continue reading International policy coordination for blockchain supply chains

Some economic consequences of the GDPR

Published in Economics Bulletin Abstract: The EU General Data Protection Regulation (GDPR) is a wide ranging personal data protection regime of greater magnitude than any similar regulation previously in the EU, or elsewhere. In this paper, we outline how the GDPR impacts the value of data held by data collectors before proposing some potential unintended … Continue reading Some economic consequences of the GDPR

Blockchain and supply chains: V-form organisations, value redistributions, de-commoditisation and quality proxies

Published in The Journal of the British Blockchain Association Abstract: We apply institutional cryptoeconomics to the information problems in global trade, model the incentives under which blockchain-based supply chain infrastructure will be built, and make predictions about the future of supply chains. We argue blockchain will change the patterns and dynamics of how, where and … Continue reading Blockchain and supply chains: V-form organisations, value redistributions, de-commoditisation and quality proxies

Blockchain: An entangled political economy approach

Published in the Journal of Public Finance and Public Choice  Abstract: This paper incorporates blockchain activities into the broader remit of entangled political economy theory, emphasising economic and other social phenomena as the emergent by-product of human interactions. Blockchains are a digital technology combining peer-to-peer network computing and cryptography to create an immutable decentralised public … Continue reading Blockchain: An entangled political economy approach

Cryptodemocracy and its institutional possibilities

Forthcoming in the Review of Austrian Economics Abstract: Democracy is an economic problem of choice constrained by transaction costs and information costs. Society must choose between competing institutional frameworks for the conduct of voting and elections. These decisions over the structure of democracy are constrained by the technologies and institutions available. As a governance technology, … Continue reading Cryptodemocracy and its institutional possibilities

Subjective political economy

Published in New Perspectives on Political Economy Abstract: We extend the Institutional Possibility Frontier (IPF) — a theoretical framework depicting the institutional trade-offs between the dual costs of dictatorship and disorder (Djankov et al. 2003) — by incorporating the notion of subjective costs. The costs of institutional choice are not objectively determined or chosen by society; … Continue reading Subjective political economy