Overcoming the Coordination Problem in New Marketplaces via Cryptographic Tokens

References

• Aloosh A, Li J (2019), Direct evidence of bitcoin wash trading. Preprint, submitted June 3, https://dx.doi.org/10.2139/ssrn.3362153.Google Scholar
• Amihud Y, Mendelson H (1986) Asset pricing and the bid-ask spread. J. Financial Econom. 17:223–249.Crossref, Google Scholar
• Amiram D, Lyandres E, Rabetti D (2021), Competition and product quality: Fake trading on crypto exchanges. Preprint, submitted January 12, https://dx.doi.org/10.2139/ssrn.3745617.Google Scholar
• Bakos Y, Dellarocas C (2011) Cooperation without enforcement: A comparative analysis of litigation and online reputation as quality assurance mechanisms. Management Sci. 57(11):1944–1962.Link, Google Scholar
• Bakos Y, Halaburda H (2019) Funding new ventures with digital tokens: Due diligence and token tradability. Preprint, submitted March 7, https://dx.doi.org/10.2139/ssrn.3335650.Google Scholar
• Bulow JI (1982) Durable-goods monopolists. J. Political Econom. 90(2):314–332.Crossref, Google Scholar
• Catalini C, Gans J (2018) Initial coin offerings and the value of crypto tokens. Preprint, submitted March 13, https://dx.doi.org/10.2139/ssrn.3137213.Google Scholar
• Caillaud B, Jullien B (2001) Competing cybermediaries. Eur. Econom. Rev. 45(4–6):797–808.Crossref, Google Scholar
• Caillaud B, Jullien B (2003) Chicken and egg: Competition among intermediation service providers. RAND J. Econom. 34(2):309–328.Crossref, Google Scholar
• Chod J, Lyandres E (2021) A theory of ICOs: Diversification, agency, and information asymmetry. Management Sci. 67(10):5969–5989.Link, Google Scholar
• Chod J, Trichakis N, Yang SA (2022) Platform Tokenization: Financing, Governance, and Moral Hazard. Management Sci., ePub ahead of print March 8, https://doi.org/10.1287/mnsc.2021.4225.Link, Google Scholar
• Coase R (1972) Durability and monopoly. J. Law Econom. 15(1):143–149.Crossref, Google Scholar
• Cong L, Li Y, Wang N (2018) Tokenomics: Dynamic adoption and valuation. Preprint, submitted July 30, https://dx.doi.org/10.2139/ssrn.3222802.Google Scholar
• Cong L, Li X, Tang K, Yang Y (2020) Crypto wash trading. Preprint, submitted March 2, https://doi.org/10.2139/ssrn.3530220.Google Scholar
• Constantinides GM (1986) Capital market equilibrium with transaction costs. J. Political Econom. 94:842–862.Crossref, Google Scholar
• Duffie D, Rleanu NG, Pedersen LH (2005) Over the counter markets. Econometrica 73(6):1815–1847.Crossref, Google Scholar
• Evans DS, Hagiu A, Schmalensee R (2006) Invisible Engines: How Software Platforms Drive Innovation and Transform Industries (MIT Press, Cambridge, MA).Crossref, Google Scholar
• Fudenberg D, Tirole J (2000) Pricing a network good to deter entry. J. Indust. Econom. 48(4):373–390.Crossref, Google Scholar
• Gan R, Tsoukalas G, Netessine S (2021a) Initial coin offerings, speculation, and asset tokenization. Management Sci. 67(2):914–931.Link, Google Scholar
• Gan R, Tsoukalas G, Netessine S (2021b) To infinity and beyond: Financing platforms with uncapped crypto tokens. Preprint, submitted February 1, https://dx.doi.org/10.2139/ssrn.3776411.Google Scholar
• Gandal N, Hamrick JT, Moore T, Oberman T (2018) Price manipulation in the Bitcoin ecosystem. J. Monetary Econom. 95:86–96.Crossref, Google Scholar
• Gans J, Halaburda H (2015) Some economics of private digital currency. Goldfarb A, Greenstein S, Tucker C, eds. Economic Analysis of the Digital Economy (University of Chicago Press, Chicago).Crossref, Google Scholar
• Garman MB (1976) Market microstructure. J. Financial Econom. 3:257–275.Google Scholar
• Ghose A, Telang R, Krishnan R (2005) J. Management Inform. Systems 22(2):91–120.Crossref, Google Scholar
• Hagiu A (2006) Pricing and commitment by two-sided platforms. RAND J. Econom. 37(3):720–737.Crossref, Google Scholar
• Hagiu A, Spulber D (2013) First-party content and coordination in two-sided markets. Management Sci. 59(4):933–949.Link, Google Scholar
• Halaburda H, Yehezkel Y (2016) The role of coordination bias in platform competition. J. Econom. Management Strategy 25(2):274–312.Crossref, Google Scholar
• Halaburda H, Yehezkel Y (2019) Focality advantage in platform competition. J. Econom. Management Strategy 28(1):49–59.Crossref, Google Scholar
• Halaburda H, Jullien B, Yehezkel Y (2020) Dynamic competition with network externalities: Why history matters. RAND J. Econom. 51(1):3–31.Crossref, Google Scholar
• Halaburda H, Sarvary M, Hearinger G (2022a) Beyond Bitcoin: The Economics of Digital Currencies and Blockchain Technologies, 2nd ed. (Palgrave Macmillan, New York).Crossref, Google Scholar
• Halaburda H, Hearinger G, Gans J, Gandal N (2022b) The microeconomics of cryptocurrencies. J. Econom. Lit. Forthcoming.Crossref, Google Scholar
• Holmstrom B, Milgrom P (1994) The firm as an incentive system. Amer. Econom. Rev. 84(4):972–991.Google Scholar
• Howell S, Niessner M, Yermack D (2020) Initial coin offerings: Financing growth with cryptocurrency token sales. Rev. Financial Stud. 33(9):3925–3974.Crossref, Google Scholar
• ICO Bench (2020) ICO Stats and Facts. Accessed at https://icobench.com/stats on January 10, 2020.Google Scholar
• Katz ML, Shapiro C (1986) Technology adoption in the presence of network externalities. J. Political Econom. 94(4):822–841.Google Scholar
• Kreps DM, Milgrom P, Roberts J, Wilson R (1982) Rational cooperation in the finitely repeated prisoners dilemma? J. Econom. Theory 27(2):245–252.Crossref, Google Scholar
• La Porta R, Lopez-de-Silanes F, Shleifer A, Vishny RW (1997) Trust in large organizations. Amer. Econom. Rev. 87(2):333–338.Google Scholar
• Lee J, Parlour C (2022) Consumers as financiers: Consumer surplus, crowdfunding, and initial coin offerings. Rev. Financial Stud. 35(3):1105–1140.Crossref, Google Scholar
• Lehar A, Parlour C (2021) Decentralized exchanges. Preprint, submitted August 16, https://dx.doi.org/10.2139/ssrn.3905316.Google Scholar
• Li J, Mann W (2017) Digital tokens and platform building. Preprint, submitted December 17, https://dx.doi.org/10.2139/ssrn.3088726.Google Scholar
• Lyandres E, Palazzo B, Rabetti D (2018) Do tokens behave like securities? An anatomy of initial coin offerings. Preprint, submitted December 12, https://dx.doi.org/10.2139/ssrn.3287583.Google Scholar
• Malinova K, Park A (2018) Tokenomics: When tokens beat equity. Preprint, submitted December 2, https://dx.doi.org/10.2139/ssrn.3286825.Google Scholar
• Maskin E, Fudenberg D, Levine D (1994) The folk theorem with imperfect public information. Econometrica 62(5):997–1039.Crossref, Google Scholar
• Mayer S (2019) Token-based platforms and speculators. Preprint, submitted October 28, https://dx.doi.org/10.2139/ssrn.3471977.Google Scholar
• McIntyre DA (2009) Failure to launch: HD-DVD. Time (May 14), http://content.time.com/time/specials/packages/article/0,28804,1898610_1898625_1898629,00.html.Google Scholar
• Nelson P (1974) Advertising as information. J. Political Econom. 82(4):729–754.Crossref, Google Scholar
• Schelling T (1960) The Strategy of Conflict (Harvard University Press, Cambridge, MA).Google Scholar
• Shakhnov K, Zaccaria L (2020) (R)evolution in entrepreneurial finance? The relationship between cryptocurrency and venture capital markets. Preprint, submitted June 12, https://dx.doi.org/10.2139/ssrn.3613261.Google Scholar
• Shapiro C, Varian H (1998) Information Rules: A Strategic Guide to the Network Economy (Harvard Business School Press, Boston).Google Scholar
• Sockin M, Xiong W (2020) A model of cryptocurrencies. Preprint, submitted March 9, https://ssrn.com/abstract=3550965.Google Scholar
• Sockin M, Xiong W (2022) Decentralization through tokenization. Preprint, submitted February 7, https://ssrn.com/abstract=4028336.Google Scholar
• Tadelis S (1999) What’s in a name? Reputation as a tradable asset. Amer. Econom. Rev. 89(3):548–563.Crossref, Google Scholar
• Vayanos D (1998) Transaction costs and asset prices: A dynamic equilibrium model. Rev. Financial Stud. 11:1–58.Crossref, Google Scholar
• Westland JC (2021) Trade informativeness and liquidity in Bitcoin markets. PLoS One 16(8):e0255515.Crossref, Google Scholar