Browse > Article
http://dx.doi.org/10.9716/KITS.2018.17.4.151

Estimating the Security Investors' Willingness to Pay for Blockchain  

Nam, Seungoh (순천향대학교 IT금융경영학과)
Publication Information
Journal of Information Technology Services / v.17, no.4, 2018 , pp. 151-162 More about this Journal
Abstract
Blockchain can be highly secured by design and efficient for huge data so that many researchers and practitioners have been interested in blockchain in nature. The principles and applications of blockchain have been investigated by numerous studies and projects, however little is coincident regarding estimating about security investors' additional willingness to pay (WTP) and analyzing relationship with socio-economic characteristics of the investor for blockchain in the securities industry. This study surveyed on 1,000 heads of the household or homemakers that represents population well and estimated additional WTP using one-and-one-half-bounded (OOHB) dichotomous choice (DC) contingent valuation (CV) method. About 63% of respondents had additional WTP for blockchain. The mean WTP was KRW 48,206.92 and the median WTP was KRW 30,967.76. In addition to, the people who are high-income, highly-educated and having more financial asset were more likely to pay extra for their utility from using blockchain. The aggregated additional WTP was about 13% of the 2017 fiscal net income of the security industry. Consequently using blockchain, the strategic developing of securities targeting high-income, highly educated investors having more financial assets can increase commission income, which in turn can increase the company's revenues.
Keywords
Blockchain; Settlement and Clearing; Willingness to Pay; Contingent Valuation;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
1 Arrow, K., R. Solow, P.R. Portney, E.E. Leamer, R. Radner, and H. Schuman, "Report of the NOAA Panel on Contingent Valuation", Federal Register, Vol.58, 1993, 4601-4614.
2 Bang, T.W., "Fundamental Technology of the Fourth Industrial Revolution, Block Chain, Convergence WeeklyTip", Convergence Research Policy Center, Vol.108, 2018.
3 Berrens, R.P., A.K. Bohara, C.L. Silva, D. Brookshire, and M. McKee, "Contingent Values for New Mexico in Stream Flows : With Tests of Scope, Group-size Reminder and Temporal Reliability", Journal of Environmental Management, Vol.58, No.1, 2000, 73-90.   DOI
4 BIS, "Distributed Ledger Eechnology in Payment, Clearing and Settlement", 2017, 1-23.
5 Breidert, C., M. Hahsler, and T. Reutterer, "A Review of Methods for Measuring Willingness to Pay", Innovation Marketing, Vol.2, No.4, 2006, 8-32.
6 Cameron, M.R. and R.T. Carson, Using Survey to Value Public Goods : The Contingent Valuation Method, Resources for the Future, Washington : RFF Press, 1987.
7 Castillo, M., "Singapore Exchange Backs Distributed Ledger Alternative For FX Trading", Forbes, 2018, Available at https://www.forbes.com/sites/michaeldelcastillo/2018/05/04/sgx-backs-cobalt-dlt/#3e7eae52ab78(Accessed October 3, 2018).
8 The Nominees, Financial News, Dow Jones, April 2018, Available at https://www.forbes.com/sites/bernardmarr/2017/01/24/a-complete-beginners-guide-to-blockchain/#1cd612c46e60(Accessed October 3, 2018).
9 Cooper, J.C., W.M. Hanemann, and G. Signorello, "One-and-one-half-bounded Dichotomous Choice Contingent Valuation", The Review of Economics and Statistics, Vol.84, 2002, 742-750.   DOI
10 Cummings, R.G., D.S. Brookshire, R.C. Bishop, and K.J. Arrow, Valuing Environmental Goods : An Assessment of the Contingent Valuation Method, Totowa : Rowman and Allenheld, 1986.
11 Ernst and Young, Blockchain in Insurance; Ernst and Young Report, London : Ernst and Young LLP, 2017.
12 Kemp, L., Blockchain Applications in Insurance; Deloitte Report, UK : Deloitte LLP 2016.
13 Gatteschi, V., F. Lamberti, C. Demartini, C. Pranteda, and V. Santamaria, "Blockchain and Smart Contracts for Insurance : Is the Technology Mature Enough?", Future Internet, Vol.10, No.2, 2018, 20.   DOI
14 Gurluk, S., "The Estimation of Ecosystem Services' Value in the Region of Misi Rural Development Project : Results from A Contingent Valuation Survey", Forest Policy Economy, Vol.9, No.3, 2006, 209-218.   DOI
15 Haber, S. and W.S. Stornetta, "How to Time-stamp a Digital Document", Journal of Cryptology, Vol.3, No.2, 1991, 99-111.   DOI
16 Hanemann, W.M., "Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses", American Journal of Agricultural Economics, Vol.66, No.3, 1984, 332-341.   DOI
17 Hanemann, W.M., J. Loomis, and B. Kanninen, "Statistical Efficiency of Double-bound Dichotomous Choice Contingent Valuation", American Journal of Agricultural Economics, Vol.73, No.4, 1991, 1255-1263.   DOI
18 Kim, J.S. and K.Y. Kim, "A Study on Factors Affecting the Intention to Accept Blockchain Technology", Journal of Information Technology Services, Vol.16, No.2, 2017, 1-20.   DOI
19 Krinsky, I. and A.L. Robb, "On Approximating the Statistical Properties of Elasticities", The Review of Economics and Statistics, Vol.68, No.4, 1986, 715-719.   DOI
20 Krinsky, I. and A.L. Robb, "On Approximating the Statistical Properties of Elasticities : A Correction", The Review of Economics and Statistics, Vol.72, No.1990, 189-190.   DOI
21 Mathew, S. and A. Irrera, "Australia's ASX Selects Blockchain to Cut Costs", Reuters, 2017. Available at https://www.reuters.com/article/us-asx-blockchain/australias-asx-selectsblockchain-to-cut-costs-idUSKBN1E037R (Accessed October 3, 2018).
22 Lamberti, F., V. Gatteschi, C. Demartini, C. Pranteda, and V. Santamaria, "Blockchain or Not Blockchain, That Is the Question of the Insurance and Other Sectors", IT Professional, 2017.
23 Lim, S.Y., H.Y. Kim, and S.H. Yoo, "Public Willingness to Pay for Transforming Jogyesa Buddhist Temple in Seoul, Korea into a Cultural Tourism Resource", Sustainability, Vol.8, No.9, 2016, 1-13.
24 Lorenz, J.T., B. Munstermann, M. Higginson, P.B. Olesen, N. Bohlken, and V. Ricciardi, Blockchain in Insurance Opportunity or Threat? : McKinsey and Company Report, New York : McKinsey and Company 2016.
25 Mainelli, M. and A. Milne, "The Impact and Potential of Blockchain on The Securities Transaction Lifecycle, Swift Institute", SWIFT Institute Working Paper, May, 2016.
26 Marr, B., "A Complete Beginner's Guide to Blockchain", 2017, Available at https://www.forbes.com/sites/bernardmarr/2017/01/24/a-complete-beginners-guide-to-blockchain/#1cd612c46e60(Accessed October 3, 2018).
27 Nath, I., "Data Exchange Platform to Fight Insurance Fraud on Blockchain", In 2016 IEEE 16th International Conference on Data Mining Workshops, Barcelona, Catalonia, Spain, 12-15 December 2016; Domeniconi, C., F. Gullo, F. Bonchi, J. Domingo-F., R. Baeaz-Y., Z.H. Zhou, and X. Wu, IEEE Computer Society; Los Angeles, USA, 2016.
28 Szabo, N., "Formalizing and Securing Relationships on Public Networks, First Monday", 1997, Available at http://ojphi.org/ojs/index.php/fm/article/view/548/469(Accessed October 3, 2018).
29 Park, J.K. and I.J. Kim, "A Study on Adoption and Policy Direction of Blockchain Technology in Financial Industry", Journal of Information Technology Services, Vol.16, No.2, 2017, 33-44.   DOI
30 Satoshi, N., "Bitcoin : A Peer-to-Peer Electronic Cash System", 2008, Available at https://bitcoin.org/bitcoin.pdf(Accessed October 3, 2018).
31 Treleaven, P., R.G. Brown, and D. Yang, "Blockchain Technology in Finance", Computer, Vol.50, 2017, 14-17.
32 Wang, J., J. Ge, and Y. Ma, "Urban Chinese Consumers' Willingness to Pay for Pork with Certified Labels : A Discrete Choice Experiment", Sustainability, Vol.10, No.3, 2018, 603.   DOI