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1 results

  • RELATIONAL TRADE NETWORKS

  • Ilias Ioannou
  • Journal:
    The Cambridge Law Journal / Volume 82 / Issue 3 / November 2023
    Published online by Cambridge University Press:
    03 November 2023, pp. 450-482
    Print publication:
    November 2023
    • Article
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  • This paper argues that in platform-based digitalisation of international trade processes, the use of blockchain instead of a central database system does not by itself adequately address the platform provider’s potential to engage in opportunistic behaviour. Digital transformation of international trade is, thus, constrained by hold-up problems. This requires embedding governance mechanisms in platform rulebooks designed to establish trust and commonality of interests. The article proposes a governance mechanism to promote widespread digital adoption through contract design choices based on guiding principles that can establish legally enforceable behavioural standards which align with the relational characteristics of digital trade networks.