Platform-specific digital tokens are becoming increasingly common with the proliferation of initial coin offerings (ICOs). In addition to a novel financing mechanism, such tokens can help address the coordination problem that is common in network adoption. We develop a model to investigate the...

Platform-specific digital tokens are becoming increasingly common with the proliferation of initial coin offerings (ICOs). In addition to a novel financing mechanism, such tokens can help address the coordination problem that is common in network adoption. We develop a model to investigate the...

We study funding mechanisms for new ventures based on cryptographic tokens enabled by blockchain technology, such as initial coin offerings (ICOs). The infrastructure built around blockchain allows for efficient trading of these tokens. Thus the due diligence process can be crowdsourced beyond...

It is generally agreed that permissioned blockchains can improve on the operational cost and performance of permissionless blockchains, but it is usually assumed that this improvement comes at the cost of transaction security, especially in low-trust environments. We develop a model of...

Permissionless blockchain systems inspired by Bitcoin and related crypto-ecosystems are frequently promoted as the enablers of an open, distributed, and decentralized ideal. They are hailed as a solution that can “democratize” the world by creating a technological imperative favoring open,...

Electronic brokerages on the Internet represent one of the most successful examples ofelectronic commerce, having captured over 20% of retail stock trades. According toeconomic theory, prices of commodities like securities should converge to one price in amarket with the transparency of the...

Many Internet intermediaries operate two-sided networks, that is, they provide platforms to bring together two types of participants, or quot;sides,quot; such as buyers and sellers. This paper develops a model that characterizes the intermediary's pricing in two-sided networks, the value created...

Platform-specific digital tokens are becoming increasingly common with the proliferation of initial coin offerings (ICOs). In addition to a novel financing mechanism, such tokens can help address the coordination problem that is common in network adoption. We develop a model to investigate the...