Intelligent Contracts in Engineering Enterprise Supply Management

Intellectual contracts based on blockchain technology improve the efficiency of supply management of an automobile enterprise by optimizing the transactional costs of supply logistics. The present research featured KAMAZ PTC. The goal was to develop an interaction mechanism for all participants of an intellectual contract in supply activities. The article includes a review of Russian and foreign publications about intellectual contracts in various business spheres, supply management efficiency, optimization of transactional costs, and blockchain technology. The study made it possible to build an interaction mechanism of the parties involved in a blockchain intellectual contract. It also revealed a pattern of changes introduced to the intellectual contract at different stages of interaction between the initiator and suppliers. The authors also highlighted the difference between smart contract and intellectual contract. An intellectual contract appears as a logical development of a smart contract and allows the sides to change the terms. The party interaction mechanism can improve the supply efficiency as it optimizes the magnitude of transactional costs.

Mechanisms of Effective Governance and Cooperation: Comparative Analysis of the European States

The research performs an attempt to adapt accumulated approaches of the Institutional Economics to the application of the Coase theorem in public administration. Governance is mainly analyzed in the field of political science, while transactional costs definitely serve to the economic surveys. Solving the problem of social costs, Coase theorem revealed a conception of property rights as the outcome of mere contracting in independent exchanges. This conception is applicable for analyzing a wide range of issues, including externalities related to the use of assets and public goods. The article contains a brief characteristic of the self-governance in European states. The results of comparative analysis of the local governance in European region became a basis for proposing a series of transformation tools for Ukraine and neighboring states in this field. Obtained results of statistical modeling and payoff matrix of Nash equilibrium clearly confirm the validity of the Coase theorem for interpretation of the interaction between local self-governance and government institutions.

The Role of Innovative Bank Products on Customer Perception Influencing Accounting Procedures in Kurdistan

This study sought to find the role of innovative banking products on customer perception influencing accounting procedures in Kurdistan. The Innovative banking product was embraced as an independent variable through (transactional costs, innovation, and accessibility) and customer perception as a dependent variable. Lack of understanding of customer perception and accounting procedures is proving to be the main problem of the acceptance of products as it is the source of economic benefit in the Kurdistan financial sector. Pearson correlation tests were carried out to assess the relationship between the independent variables (Transaction costs, accessibility and innovation) and the dependent variable of Customer perceptions. Statistical package for the social sciences program (SPSS 20) was used for data analysis and presentation. Results indicated that all variables had a positive relationship with customer perceptions. The study recommended that the banks need to understand the risks associated with innovation in line with the accounting procedures to understand customer’s perception before developing and rolling out new products. Customers view products and services differently, therefore there is need to improve on customer relations, customer education and awareness and customer loyalty.

Achieving Sustainable Financial Transactions under Regimes without a Central Bank—An Intertemporal Comparison

In this paper, by performing an intertemporal comparison, we investigate two monetary policy regimes where a central bank is absent, and we further refer on the mechanisms they developed so as to ensure the reliability of transactions between the parties involved. In particular, we mainly focus on the economic–monetary institutions of Athens during the Classical period (508–322 BCE) and we argue that (in principle) there are inter-temporal similarities between the Athenian and the current digital currencies regimes regarding the auditing principles with which the reliability of financial transactions is ensured. We found that in both cases, what is crucial for the success of the system is to achieve trust on the currency. By focusing on Classical Athens, we analyze the nature of the mechanisms and the auditing techniques used to ensure reliable commercial transactions. We also briefly analyze the modern cryptocurrency techniques. We found that the success of both financial regimes was based on achieving: low transactional costs, speed in commercial transactions, and what we characterize as security regarding the commercial transactions.

Transaction costs and participation in avocado export marketing in Murang’a County, Kenya

PurposeThe purpose of this paper is to investigate the role of transactional costs on smallholder avocado farmers’ participation in the export market and the extent of participation in Murang’a County, Kenya.Design/methodology/approachData was collected from 384 avocado farmers in Murang’a County, following stratified sampling. The Heckman two-stage model was used for analysis.FindingsResults showed that the cost of information search was an important variable that impedes smallholders’ participation in export marketing while harvesting costs inhibits the extent of participation in export marketing.Research limitations/implicationsThis study used data at the farm level. Therefore, insights on transaction costs among other marketing agents in the export market value chain would be an issue for future studies.Originality/valueFollowing the debate on transaction costs and market participation among farmers in Sub-Sahara Africa, this paper models transactional costs and export market participation among avocado smallholders and measures the extent of participation with the inclusion of harvesting costs, negotiation costs, monitoring costs and information search costs that are not common in previous studies, thus contributing to the development of literature.

Blockchain-mediated Licensing: Legal Engineering for Artist Empowerment

Licensing is one of the essential means of exploiting the monetary value of a musical work, and yet it is an area fraught with many issues and transactional costs which make it a difficult process for individuals and organizations. Many issues in music licensing arise from the legal complexity (e.g., national and international copyright law), business complexity (authentication, tracking, accounting, etc.), value web complexity (transparency of relationships among stakeholders), and technical complexity (e.g., establishing a global repertoire database for music, sufficient metadata standards) of working with music. Then, in addition to these issues, there are specific transactional costs (identification, negotiation, monitoring, and enforcement) associated with the licensing process. To mitigate the complexity and transactional costs associated with music and the licensing process, researchers and technologists have been investigating how new technologies and design models from the Web3 space, such as blockchain, linked data and Ricardian Contracts, can automate processes to reduce complexity, speed up payments, improve tracking, and provide other benefits in the music industry. In our report, we make our own attempt to reduce the complexity and transactional costs in the licensing process by developing an automated music license. In doing so, we first conducted a literature review scoping the intersection of music complexity and Web3 technologies to provide background and context to automating music licensing. Then we developed the Practical Tokenized Drafting (PTD) method, a set of core principles and practices for drafting Ricardian Contracts that interact with Web3 technologies (RC-Web3 Templates), and the Tokenized Music License (TML), an RC-Web3 Template standard form for music licensing on the OpenLaw platform. Both the PTD and TML can be adapted to meet the needs of music industry stakeholders and provide guidance to legal practitioners in drafting RC-Web3 Templates.

Public-Private Partnership and Financing the Development of National Infrastructure

The chapter contains a methodology for formalized evaluation of the model of replacement of budget funds by private investment in the public infrastructure PPP projects for the purpose to ensure public finance sustainability. It can manifest itself only if the state could create appropriate conditions for private investors, including institutional players as its partners. The latter means primarily the stable formal institutional conditions for private investors, low transactional costs, attractive financial parameters, that could bring the ratio of budget and private financing of public infrastructure PPP projects to more than 1 to 1. It has become evident that accelerated development of many public infrastructure PPP projects is hampered by two factors: (1) inadequate institutional support for the design process itself and (2) absence of state-prepared acceptable financial models of public infrastructure PPP projects regarding the division of risks of infrastructure projects and delegating the proprietary rights of the state to private investors.

Organization of freelancers training to process economic information

Hiring freelancers significantly reduces the general costs: economic costs – payment for just specific work done, hours of work – the contractor is interested in the fastest execution of the order, consumer costs – the freelancer is self-sustainable, energy costs – the contractor is interested in energy saving. The stream of processed economic information is changing its quality. The exchange of structured data itself, being externally organized by the freelancers’ efforts, significantly reduces operational (including transactional) costs.

The Empirical Evaluation of Both the Internal and the International Fisher Effects for the Economy of Ukraine

The article works out the essence of theoretical concepts of both the internal and the international effects named after I. Fisher. A review of professional publications gave reason to conclude that in the countries with higher levels of marketing of the economy, the strength of these effects is higher, which indicates a higher level of integration of their national financial markets into the global financial market. Based on the results of an econometric analysis, the authors have concluded about the relative weakness of the internal Fisher Effect and, consequently, on the need to use multifactor analysis in the study of the dynamics of the real interest rate in Ukraine. The empirical evaluation of the dependencies of monetary variables in the model describing the international Fisher Effect gave reason to conclude about the relative weakness of this effect, in particular for the currency pair of «dollar – hryvnia», and therefore, the differential of national interest rates is not sufficient basis for forecasting the dynamics of the foreign exchange rate. The article uses a number of statistical criteria and tests to examine the used econometric model, which gave grounds to conclude about its adequacy and statistical significance of variables. The authors elaborated the factors that have a restrictive impact on the international movement of capital and therefore can cause differences in the real interest rates, especially in emerging markets, namely: asymmetry of market information, psychological barriers, national legislative restrictions that quota the international capital flows, high transactional costs, peculiarities of the tax system, currency risks, political risks, etc. The thesis that the presence of weak Fisher Effects for the Ukrainian economy is one of the reasons for the low effectiveness of the interest channel of the transfer mechanism of monetary policy in Ukraine is substantiated.

The Utilization of Mobile Money Services in Small Scale Enterprises:A Case Study

Mobile money is an electronic wallet service that allows users to store, send and receive money using their mobile phone. This research is an effort to find out the adoption and utilization of mobile money services in small sized enterprises located in Gaborone, Botswana. Inevitably, other aspects such as different types of transactions carried out using mobile money services in small business, customer’s perception on quality of mobile money service providers, impeding factors of mobile money adoption are also studied for wider understanding of the subject. The findings of the study show that small enterprises use mobile money services to carryout transactions but the level of adoption is not significant. The study revealed that transactional costs and connectivity issues are major barriers of adoption of mobile money services. In conclusion the study recommended that the service providers must improve the connectivity issues and reduce transaction charges in order to increase the utilization of mobile money services