Smart contracts and transaction costs
Massimiliano Vatiero ()
Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy
Because of the enforcement based on the blockchain technology, smart contracts are supposed to allow contracting parties to conduct transactions more efficiently than traditional contracts. This paper challenges that claim. Because of the need for an efficiency-enhancing adaptation of institutions—a chief problem of transaction cost economics-traditional contracts may incur lower transaction costs than smart contracts.
Keywords: Blockchain; Smart contracts; Incomplete contracts; Transaction costs; Adaptation (search for similar items in EconPapers)
JEL-codes: D23 D86 L14 L86 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cta and nep-pay
Note: ISSN 2039-1854
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2018/238
Access Statistics for this paper
More papers in Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy Contact information at EDIRC.
Bibliographic data for series maintained by ().