VGSF - WU Vienna - LC

Alfred Lehar, University of Calgary

online via Microsoft Teams 18:00 - 19:00

Organizer WU Vienna

The Fin­ance Brown Bag Sem­inar is held by the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance (WU Vi­enna) and the Vi­enna Gradu­ate School of Fin­ance (VGSF). It serves as a present­a­tion plat­form for PhD stu­dents, fac­ulty mem­bers, and vis­it­ors. An over­view of BBS on the web­site of the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance.


June 30th, 2020, 6:00 - 7:00 pm
You can par­ti­cip­ate in the sem­inar on­line via Mi­crosoft Teams
The meet­ing will open at 5:45 pm for you to dial in. To join the stream please fol­low this link.
In case of tech­nical prob­lems please con­tact: patrick.weis­

Al­fred Le­har, Uni­versity of Cal­gary

Title: "Miner Col­lu­sion and the Bit­Coin Pro­to­col"


Bit­coin users can of­fer fees to miners who re­cord their trans­ac­tions in the Block­chain. We doc­u­ment high vari­ation of bit­coin fees, not only over time, but also within blocks. Fur­ther, the block­chain rarely runs at ca­pa­city, even though fees tend to be higher when blocks are fuller, so miners ap­pear to be leav­ing “money on the table”. We present a sim­ple model of price dis­crim­in­a­tion to ex­plain our res­ults. We note that min­ing pools fa­cil­it­ate col­lus­ive equi­lib­ria, and es­tim­ate that they have ex­trac­ted least 200 mil­lion USD a year in ex­cess fees by mak­ing pro­cessing ca­pa­city scarce.

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