Asian Perspective Seminar: Leo Bao

Title: Blockchain-Mediated Information Sharing: Theory and Experiment

Abstract: Information sharing can create surplus, yet incentive constraints often impede mutually beneficial exchanges. We model this dilemma as two agents exchanging private information to solve a puzzle with a prize awarded to the sole solver or shared between joint solvers, and address it using blockchain-mediated information sharing. In theory, when agents have limited stakes against misreporting, artificial randomness in information transmission can increase truth-telling, trusting, and, most importantly, the probability that the puzzle is solved. Experimental results support these predictions. Our mechanism enables resource-constrained agents to benefit from information sharing, which potentially broadens blockchain participation and generates positive network externalities.