Can Blockchain Solve the Hold-Up Problem in Contracts? |
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| Author:
| Holden, Richard
Malani, Anup |
| Series title: | Elements in Law, Economics and Politics Ser. |
| ISBN: | 978-1-009-00139-7 |
| Publication Date: | Nov 2021 |
| Publisher: | Cambridge University Press
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| Book Format: | Paperback |
| List Price: | AUD $32.95 |
Book Description:
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Conventional contract technologies to ensure commitment--liquidated damages--are disfavored by courts and themselves subject to renegotiation. Smart contracts written on blockchain ledgers offer a solution. We explain the basic economics and legal relevance of these technologies, and we argue that they can implement liquidated damages without courts.
Conventional contract technologies to ensure commitment--liquidated damages--are disfavored by courts and themselves subject to renegotiation. Smart contracts written on blockchain ledgers offer a solution. We explain the basic economics and legal relevance of these technologies, and we argue that they can implement liquidated damages without courts.