On V-form Firms: Governance, Cryptocurrency, and Internalization on the Blockchain

AIER Sound Money Project, Working Paper No. 2021-03

19 Pages Posted: 29 Dec 2020

See all articles by James Caton

James Caton

North Dakota State University - Department of Agribusiness and Applied Economics; American Institute for Economic Research; North Dakota State University - NDSU Center for the Study of Public Choice and Private Enterprise

Date Written: November 3, 2020

Abstract

Although the V-form organization has received attention in light of the integration of blockchain with processes in supply chains, analysis of a V-form organization as a firm in terms of its identity as legal entity has not been considered. Building on the concept of internalization, I reflect upon the efficiency increases the V-form firm can offer to supply chain members. V-form firms can support robust, decentralized markets that use cryptocurrency native to the blockchain with which the supply chain is integrated. Likewise, the V-form firm can provide property within the firm and which the firm is incentivized to protect from predatory intervention. I follow by considering the impact of the V-form firm on institutions adjacent the supply chain. The V-form firm stands to increase the level of competition in the realms of governance and monetary systems, either directly providing alternatives or indirectly influencing existing systems for which it may serve as substitute.

Keywords: Blockchain, Firms, Cryptocurrency, Organization, Institutions, Internalization

JEL Classification: L22, L23, L25, L26, P4

Suggested Citation

Caton, James, On V-form Firms: Governance, Cryptocurrency, and Internalization on the Blockchain (November 3, 2020). AIER Sound Money Project, Working Paper No. 2021-03, Available at SSRN: https://ssrn.com/abstract=3715053 or http://dx.doi.org/10.2139/ssrn.3715053

James Caton (Contact Author)

North Dakota State University - Department of Agribusiness and Applied Economics ( email )

Fargo, ND 58105
United States

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

North Dakota State University - NDSU Center for the Study of Public Choice and Private Enterprise

811 2nd Ave N.
Fargo, ND 58102
United States

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