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
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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2018/238
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