Complementarity Among Vertical Integration Decisions: Evidence from Automobile Product Development

This paper examines complementarity among vertical integration decisions in automobile product development. Though most research assumes that contracting choices are independent of each other, contracting complementarity arises when the returns to a single vertical integration decision are increasing in the level of vertical integration associated with other contracting choices. First, effective coordination may depend on the level of (non-contractible) effort on the part of each agent; contracting complementarity results if coordination efforts are interdependent and vertical integration facilitates a higher level of non-contractible effort. Second, effective coordination may require the disclosure of proprietary trade secrets, and the potential for expropriation by external suppliers may induce complementarity among vertical integration choices. We provide evidence for complementarity in product development contracting by taking advantage of a detailed dataset that includes the level of vertical integration and the contracting environment for individual automobile systems in the luxury automobile segment. Using an instrumental variables framework that distinguishes complementarity from unobserved firm-level factors, the evidence is consistent with the hypothesis that contracting complementarity is an important driver of vertical integration choices. The findings suggest that contracting complementarity may be particularly important when coordination is important to achieve but difficult to monitor.

Secret charing vs. encryption-based techniques for privacy preserving data mining

Privacy preserving querying and data publishing has been studied in the context of statistical databases and statistical disclosure control. Recently, large-scale data collection and integration efforts increased privacy concerns which motivated data mining researchers to investigate privacy implications of data mining and how data mining can be performed without violating privacy. In this paper, we first provide an overview of privacy preserving data mining focusing on distributed data sources, then we compare two technologies used in privacy preserving data mining. The first technology is encryption based, and it is used in earlier approaches. The second technology is secret-sharing which is recently being considered as a more efficient approach

ETHTID: Deployable Threshold Information Disclosure on Ethereum

We address the Threshold Information Disclosure (TID) problem on Ethereum: An arbitrary number of users commit to the scheduled disclosure of their individual messages recorded on the Ethereum blockchain if and only if all such messages are disclosed. Before a disclosure, only the original sender of each message should know its contents. To accomplish this, we task a small council with executing a distributed generation and threshold sharing of an asymmetric key pair. The public key can be used to encrypt messages which only become readable once the threshold-shared decryption key is reconstructed at a predefined point in time and recorded on-chain. With blockchains like Ethereum, it is possible to coordinate such procedures and attach economic stakes to the actions of participating individuals. In this paper, we present ETHTID, an Ethereum smart contract application to coordinate Threshold Information Disclosure. We base our implementation on ETHDKG [1], a smart contract application for distributed key generation and threshold sharing, and adapt it to fit our differing use case as well as add functionality to oversee a scheduled reconstruction of the decryption key. For our main cost saving optimisation, we show that the security of the underlying cryptographic scheme is maintained. We evaluate how the execution costs depend on the size of the council and the threshold and show that the presented protocol is deployable on Ethereum with a council of more than 200 members with gas savings of 20--40\% compared to ETHDKG

ETHTID: Deployable Threshold Information Disclosure on Ethereum

We address the Threshold Information Disclosure (TID) problem on Ethereum: An arbitrary number of users commit to the scheduled disclosure of their individual messages recorded on the Ethereum blockchain if and only if all such messages are disclosed. Before a disclosure, only the original sender of each message should know its contents. To accomplish this, we task a small council with executing a distributed generation and threshold sharing of an asymmetric key pair. The public key can be used to encrypt messages which only become readable once the threshold-shared decryption key is reconstructed at a predefined point in time and recorded on-chain. With blockchains like Ethereum, it is possible to coordinate such procedures and attach economic stakes to the actions of participating individuals. In this paper, we present ETHTID, an Ethereum smart contract application to coordinate Threshold Information Disclosure. We base our implementation on ETHDKG [1], a smart contract application for distributed key generation and threshold sharing, and adapt it to fit our differing use case as well as add functionality to oversee a scheduled reconstruction of the decryption key. For our main cost saving optimisation, we show that the security of the underlying cryptographic scheme is maintained. We evaluate how the execution costs depend on the size of the council and the threshold and show that the presented protocol is deployable on Ethereum with a council of more than 200 members with gas savings of 20-40% compared to ETHDKG