Forthcoming in: Economic Information to Facilitate Decision Making, Edited Book, Editor- Kashi R. Balachandran, World Scientific Publishers (2019).
As a foundational technology, blockchain technology creates the infrastructure for decentralized networked governance that, over time, creates the environment that enables the removal of internal and external monitoring mechanisms previously necessitated by agency problems in corporate governance. Blockchain technology facilitates a substantial increase in efficiency in the agency relationship and lowers agency costs in orders of magnitude.
Keywords: Agency, Principal-Agent, Blockchain, Technology, Agency Cost, Monitoring, Corporate Governance
JEL Classification: K20, K23, K32, L43, L5, O31, O32