Daisuke Adachi - Academia.edu (original) (raw)

Daisuke Adachi

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Papers by Daisuke Adachi

Research paper thumbnail of Economic Implications of Blockchain Platforms

Cornell University - arXiv, Oct 1, 2018

In an economy with asymmetric information, the smart contract in the blockchain protocol mitigate... more In an economy with asymmetric information, the smart contract in the blockchain protocol mitigates uncertainty. Since, as a new trading platform, the blockchain triggers segmentation of market and differentiation of agents in both the sell and buy sides of the market, it reconfigures the asymmetric information and generates spreads in asset price and quality between itself and traditional platform. We show that marginal innovation and sophistication of the smart contract have non-monotonic effects on the trading value in the blockchain platform, its fundamental value, the price of cryptocurrency, and consumers' welfare. Moreover, a blockchain manager who controls the level of the innovation of the smart contract has an incentive to keep it lower than the first best when the underlying information asymmetry is not severe, leading to welfare loss for consumers.

Research paper thumbnail of Economic Implications of Blockchain Platforms

arXiv: Pricing of Securities, 2018

In an economy with asymmetric information, the smart contract in the blockchain protocol mitigate... more In an economy with asymmetric information, the smart contract in the blockchain protocol mitigates uncertainty. Since, as a new trading platform, the blockchain triggers segmentation of market and differentiation of agents in both the sell and buy sides of the market, it recomposes the asymmetric information and generates spreads in asset price and quality between itself and a traditional platform. We show that marginal innovation and sophistication of the smart contract have non-monotonic effects on the trading value in the blockchain platform, its fundamental value, the price of cryptocurrency, and consumers' welfare. Moreover, a blockchain manager who controls the level of the innovation of the smart contract has an incentive to keep it lower than the first best when the underlying information asymmetry is not severe, leading to welfare loss for consumers.

Research paper thumbnail of Economic Implications of Blockchain Platforms

Cornell University - arXiv, Oct 1, 2018

In an economy with asymmetric information, the smart contract in the blockchain protocol mitigate... more In an economy with asymmetric information, the smart contract in the blockchain protocol mitigates uncertainty. Since, as a new trading platform, the blockchain triggers segmentation of market and differentiation of agents in both the sell and buy sides of the market, it reconfigures the asymmetric information and generates spreads in asset price and quality between itself and traditional platform. We show that marginal innovation and sophistication of the smart contract have non-monotonic effects on the trading value in the blockchain platform, its fundamental value, the price of cryptocurrency, and consumers' welfare. Moreover, a blockchain manager who controls the level of the innovation of the smart contract has an incentive to keep it lower than the first best when the underlying information asymmetry is not severe, leading to welfare loss for consumers.

Research paper thumbnail of Economic Implications of Blockchain Platforms

arXiv: Pricing of Securities, 2018

In an economy with asymmetric information, the smart contract in the blockchain protocol mitigate... more In an economy with asymmetric information, the smart contract in the blockchain protocol mitigates uncertainty. Since, as a new trading platform, the blockchain triggers segmentation of market and differentiation of agents in both the sell and buy sides of the market, it recomposes the asymmetric information and generates spreads in asset price and quality between itself and a traditional platform. We show that marginal innovation and sophistication of the smart contract have non-monotonic effects on the trading value in the blockchain platform, its fundamental value, the price of cryptocurrency, and consumers' welfare. Moreover, a blockchain manager who controls the level of the innovation of the smart contract has an incentive to keep it lower than the first best when the underlying information asymmetry is not severe, leading to welfare loss for consumers.

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