JOURNAL ARTICLE

The "dark side" of smart contracts: A contract theory perspective.

  • Published In: European Management Review, 2024, v. 21, n. 3. P. 516 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Vatiero, Massimiliano 3 of 3

Abstract

Smart contracts govern transactions using the blockchain as the enforcing medium. They may be a cheaper form of governance of transactions compared to traditional contracts, the hierarchy of firms, and relational contracts. However, I argue that smart contracts do not eliminate transaction costs; rather, they can increase them, particularly when considering the issue of ex‐post efficiency‐enhancing adaptation. Thus, while smart contracts offer a new theoretical and practical way to govern transactions, they are not without challenges and limitations. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:European Management Review. 2024/09, Vol. 21, Issue 3, p516
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2024
  • ISSN:1740-4754
  • DOI:10.1111/emre.12676
  • Accession Number:180986115
  • Copyright Statement:Copyright of European Management Review is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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