Why There is the Imbalance Income Distribution in the NFT Markets? An Evolutionary Game Study

Hemiao Gao ()
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Hemiao Gao: Shandong Normal University, Business School

A chapter in Proceedings of the 2025 5th International Conference on Informatization Economic Development and Management (IEDM 2025), 2025, pp 304-310 from Springer

Abstract: Abstract Imbalance income distribution is the important problem disturbing NFT markets, this paper applies an evolutionary game model and network externality theory to discuss why there is the huge differentiation of price and demand between NFTs. By constructing the three-sided model, this paper conducts the simulation analysis, then gives the explanation for the imbalance distribution. Firstly, the network externality increases the utility of the earlier and famous NFTs, and buyers have limited attention on the NFTs’ value, so the buyers prefer the earlier and famous NFTs rather than non-famous or new NFTs. Secondly, network externality increases the buyers’ demand for earlier and famous NFTs, so they can keep a high price. Thirdly, Expansion of market size makes the non-famous and new NFTs keep a low price. this paper makes several contributions: firstly, it explores the unequal distribution in NFTs markets, filling a gap in existing research, which focuses on copyright-related problems. Secondly, it applies the theory of network externality and evolutionary game model, providing a new idea to explore the distribution of profits in NFT markets.

Keywords: Non-fungible tokens; Network externality; Platform economy (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-724-3_30

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DOI: 10.2991/978-94-6463-724-3_30

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