Blockchain, Information Production, and Ownership Structure: The Case of a Decentralized Academic Journal

Abstract

We propose a decentralized journal platform based on blockchain, in which referees are individually incentivized. We construct a model in which the journal publishes qualified papers under two types of information asymmetry: paper quality and type of referees. We investigate under what conditions equilibrium in decentralization exists or fails and it leads to a better outcome. The results from the model can be widely applied to information-production processes in intermediary funding decisions, loan inspection, and credit ratings. Our research helps to understand how to design the incentive structure for information providers (specialists) in terms of social welfare.

Keywords: Blockchain, Decentralization, Coordination Failure, Moral Hazard, Negative Externality

JEL Classification: C71, D23, D40, D61, D80, E40