Economic Analysis of Blockchain Technology on Digital Platform Market
| Autor: | Seungjai Min, Ki-Woon Sung, Kyusang Lee, Hyojung Lee, Jae-Seok Lee |
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| Rok vydání: | 2018 |
| Předmět: |
Service quality
Blockchain Sequential game Computer science Quality of service 05 social sciences 050801 communication & media studies Service provider Trusted third party Computer security computer.software_genre Competition (economics) 0508 media and communications Incentive 0502 economics and business 050207 economics computer |
| Zdroj: | PRDC |
| Popis: | Blockchain technology on the platform business becomes a new paradigm which gets security, irreversibility, and trustfulness closer to both of clients and service providers (SPs) for providing a better quality of service. To provide an economic analysis of such blockchain-based platform business, a game theoretic approach is used to model a competitive market against the incumbent platform operated by a centralizer as a trusted third party. In this market, the platforms behave as a mediator to deliver the services provided by SPs to clients. The crucial factors for the success of blockchain-based platform business are (i) how SPs' participation is reflected on its quality of service (QoS) and (ii) how to incentivize SPs to contribute their resources such as computing/storage infrastructure. In our game formulation, a non-cooperative two-stage dynamic game is used, where the first stage models how to incentivize SPs in a blockchain-based platform and the second stage models the competition between platforms to attract clients. As a result, we provide an equilibrium analysis, which gives a useful insight into how much the service quality of blockchain-based platform affects the competition between platforms and the equilibrium incentive strategy for SPs. Moreover, our numerical analysis shows that the equilibrium incentive increases with proportional to the QoS of a blockchain-based platform whereas the incentive becomes negative if it provides a non-increasing QoS with the number of participated SPs. |
| Databáze: | OpenAIRE |
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