Efficient and confidential reallocation of contracts: how The Danish sugar industry adapted to the new sugar regime

Peter Bogetoft; Kurt Nielsen

doi:10.1007/s11573-011-0535-y

Efficient and confidential reallocation of contracts: how The Danish sugar industry adapted to the new sugar regime

Abstract

The first Danish exchange for sugar beet contracts was established in January 2008. It was also the world’s first major application of a new technology, secure multiparty computation (SMC), which ensures the security and cost-effectiveness of such exchanges. The technology can potentially be used in a number of other applications, including voting, negotiations, and benchmarking. SMC makes it possible to combine private knowledge from a large number of parties without ever revealing their individual knowledge. This provides unique opportunities for individual agents to collaborate despite conflicting interests and decentralized knowledge, which, in many contexts, constitute the primary obstacle to the creation of economic gains. The establishment of the Danish contract exchange was the culmination of a novel and successful collaboration between economists and cryptologists. It constitutes a successful operational research project using novel scientific methods to solve a real, large-scale problem. This article describes the background for and the implementation of the exchange and discusses some other potential applications.

Originalsprog	Engelsk
Tidsskrift	Z f B
Vol/bind	82
Udgave nummer	2
Sider (fra-til)	165-180
Antal sider	16
ISSN	0044-2372
DOI	https://doi.org/10.1007/s11573-011-0535-y
Status	Udgivet - 2012

Adgang til dokumentet

10.1007/s11573-011-0535-y

Citationsformater

@article{89c833af955f4ba7ac220d82f4bdfee8,

title = "Efficient and confidential reallocation of contracts: how The Danish sugar industry adapted to the new sugar regime",

abstract = "The first Danish exchange for sugar beet contracts was established in January 2008. It was also the world{\textquoteright}s first major application of a new technology, secure multiparty computation (SMC), which ensures the security and cost-effectiveness of such exchanges. The technology can potentially be used in a number of other applications, including voting, negotiations, and benchmarking. SMC makes it possible to combine private knowledge from a large number of parties without ever revealing their individual knowledge. This provides unique opportunities for individual agents to collaborate despite conflicting interests and decentralized knowledge, which, in many contexts, constitute the primary obstacle to the creation of economic gains. The establishment of the Danish contract exchange was the culmination of a novel and successful collaboration between economists and cryptologists. It constitutes a successful operational research project using novel scientific methods to solve a real, large-scale problem. This article describes the background for and the implementation of the exchange and discusses some other potential applications.",

author = "Peter Bogetoft and Kurt Nielsen",

year = "2012",

doi = "10.1007/s11573-011-0535-y",

language = "English",

volume = "82",

pages = "165--180",

journal = "Journal of Business Economics",

issn = "0044-2372",

publisher = "Springer",

number = "2",

}

TY - JOUR

T1 - Efficient and confidential reallocation of contracts

T2 - how The Danish sugar industry adapted to the new sugar regime

AU - Bogetoft, Peter

AU - Nielsen, Kurt

PY - 2012

Y1 - 2012

N2 - The first Danish exchange for sugar beet contracts was established in January 2008. It was also the world’s first major application of a new technology, secure multiparty computation (SMC), which ensures the security and cost-effectiveness of such exchanges. The technology can potentially be used in a number of other applications, including voting, negotiations, and benchmarking. SMC makes it possible to combine private knowledge from a large number of parties without ever revealing their individual knowledge. This provides unique opportunities for individual agents to collaborate despite conflicting interests and decentralized knowledge, which, in many contexts, constitute the primary obstacle to the creation of economic gains. The establishment of the Danish contract exchange was the culmination of a novel and successful collaboration between economists and cryptologists. It constitutes a successful operational research project using novel scientific methods to solve a real, large-scale problem. This article describes the background for and the implementation of the exchange and discusses some other potential applications.

AB - The first Danish exchange for sugar beet contracts was established in January 2008. It was also the world’s first major application of a new technology, secure multiparty computation (SMC), which ensures the security and cost-effectiveness of such exchanges. The technology can potentially be used in a number of other applications, including voting, negotiations, and benchmarking. SMC makes it possible to combine private knowledge from a large number of parties without ever revealing their individual knowledge. This provides unique opportunities for individual agents to collaborate despite conflicting interests and decentralized knowledge, which, in many contexts, constitute the primary obstacle to the creation of economic gains. The establishment of the Danish contract exchange was the culmination of a novel and successful collaboration between economists and cryptologists. It constitutes a successful operational research project using novel scientific methods to solve a real, large-scale problem. This article describes the background for and the implementation of the exchange and discusses some other potential applications.

U2 - 10.1007/s11573-011-0535-y

DO - 10.1007/s11573-011-0535-y

M3 - Journal article

SN - 0044-2372

VL - 82

SP - 165

EP - 180

JO - Journal of Business Economics

JF - Journal of Business Economics

IS - 2

ER -