5 papers
Efficient liability assignment under shock propagation
Jens Gudmundsson, Jens Leth Hougaard, Kohmei Makihara +1
We study a model in which shocks propagate along a path chosen by agents embedded in a network. When a shock hits an agent, the affected agent cancels one of her outgoing edges. Th…
Smart contracts and reaction-function games
Jens Gudmundsson, Jens Leth Hougaard
Blockchain-based smart contracts offer a new take on credible commitment, where players can commit to actions in reaction to actions of others. Such reaction-function games extend…
Managing cascading disruptions through optimal liability assignment
Jens Gudmundsson, Jens Leth Hougaard, Jay Sethuraman
Interconnected agents such as firms in a supply chain make simultaneous preparatory investments to increase chances of honouring their respective bilateral agreements. Failures cas…
Successive Incentives
Jens Gudmundsson, Jens Leth Hougaard, Juan D. Moreno-Ternero +1
We study the design of optimal incentives in sequential processes. To do so, we consider a basic and fundamental model in which an agent initiates a value-creating sequential proce…
On Reward Sharing in Blockchain Mining Pools
Burak Can, Jens Leth Hougaard, Mohsen Pourpouneh
This paper proposes a conceptual framework for the analysis of reward sharing schemes in mining pools, such as those associated with Bitcoin. The framework is centered around the r…