Coordination problems in cryptomarkets: Changes in cooperation, competition, and valuation

Silje Anderdal Bakken; Kim Møller; Sveinung Sandberg

doi:10.1177/1477370817749177

Coordination problems in cryptomarkets: Changes in cooperation, competition, and valuation

Silje Anderdal Bakken, Kim Møller, Sveinung Sandberg

17 Citationer (Scopus)

Abstract

The new drug markets emerging on the dark net have reduced earlier drug market risk factors such as visibility and violence. This study uses economic sociology and transaction cost economics to broaden the present understanding of cryptomarkets. Results focus on three coordination problems characterizing illegal markets and how they are alleviated in cryptomarkets. More information and better visibility increase competition, the feedback system enforces cooperation and border control introduces a new cost influencing valuation. Cryptomarkets are formally structured and regulated by rules of conduct and centralized decisions. We argue that the online context circumvents earlier coordination problems in illegal markets, making dark net markets more structurally efficient compared with conventional drug markets.

Originalsprog	Engelsk
Tidsskrift	European Journal of Criminology
Vol/bind	15
Udgave nummer	4
Sider (fra-til)	442-460
ISSN	1477-3708
DOI	https://doi.org/10.1177/1477370817749177
Status	Udgivet - 1 jul. 2018

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Det Sundhedsvidenskabelige Fakultet
cryptomarkets
Economical sociology

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10.1177/1477370817749177

Citationsformater

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author = "Bakken, {Silje Anderdal} and Kim M{\o}ller and Sveinung Sandberg",

year = "2018",

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AU - Bakken, Silje Anderdal

AU - Møller, Kim

AU - Sandberg, Sveinung

PY - 2018/7/1

Y1 - 2018/7/1

N2 - The new drug markets emerging on the dark net have reduced earlier drug market risk factors such as visibility and violence. This study uses economic sociology and transaction cost economics to broaden the present understanding of cryptomarkets. Results focus on three coordination problems characterizing illegal markets and how they are alleviated in cryptomarkets. More information and better visibility increase competition, the feedback system enforces cooperation and border control introduces a new cost influencing valuation. Cryptomarkets are formally structured and regulated by rules of conduct and centralized decisions. We argue that the online context circumvents earlier coordination problems in illegal markets, making dark net markets more structurally efficient compared with conventional drug markets.

AB - The new drug markets emerging on the dark net have reduced earlier drug market risk factors such as visibility and violence. This study uses economic sociology and transaction cost economics to broaden the present understanding of cryptomarkets. Results focus on three coordination problems characterizing illegal markets and how they are alleviated in cryptomarkets. More information and better visibility increase competition, the feedback system enforces cooperation and border control introduces a new cost influencing valuation. Cryptomarkets are formally structured and regulated by rules of conduct and centralized decisions. We argue that the online context circumvents earlier coordination problems in illegal markets, making dark net markets more structurally efficient compared with conventional drug markets.

KW - Faculty of Health and Medical Sciences

KW - cryptomarkets

KW - Economical sociology

KW - Cryptomarket

KW - dark net

KW - drug market

KW - economic sociology

KW - illegal drugs

KW - transaction cost

KW - economics

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DO - 10.1177/1477370817749177

M3 - Journal article

SN - 1477-3708

VL - 15

SP - 442

EP - 460

JO - European Journal of Criminology

JF - European Journal of Criminology

IS - 4

ER -

Coordination problems in cryptomarkets: Changes in cooperation, competition, and valuation

Abstract

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