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Can Blockchain Solve the Hold-up Problem in Contracts?

Paperback EN 2021 9781009001397
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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.

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          Can Blockchain Solve the Hold-up Problem in Contracts?