2018 American Economic Association Meeting in Philadelphia
Model Mechanism Review (simplified):
no blockchain = benchmark
Model with Blockchain and smart contract
Idea
Role of blockchain: escrow account that releases payment upon delivery confirmation
Model Mechanism Review (simplified):
with blockchain
Welfare Results (simplified):
with blockchain
Comment: What is the right benchmark?
But: there are other established market solutions!
Currently:
Why not:
Why important?
Comment: is entry vs collusion the key trade-off when thinking about blockchain-registered smart contracts?
Comment 1: Key question reg. smart contracts in this setting is/should be the trade-off that non-intermediated decentralized interactions bring.
Model Ingredient Review (simplified): product market
what are the buyers' decision rules?
what's the role of qualities? why needed?
how do I interpret this in finance?
for most of the paper: truthful verification
Model Ingredient Review (simplified): verifiers
Comment 2 (part 1): the main results in the paper don't use the verifier and instead assume perfect revelation.
Review of model extensions
Comment 2 (part 2): These results have an appendix-like/robustness-check feel. Why not simplify the model and shift all the complex material to an online appendix?
Comment 3: Does the paper address a question on blockchain design question? If so, organize the paper as such.
Summary Main Comments