Exploring the Social Construction of Value in Blockchain Systems

Ari Dyckovsky (Psychology), Spring 2023

We combine advanced computational social science techniques with psychological experiments to study the underlying processes that lead to the emergence of value in networked communities (e.g., cryptocurrencies in blockchain systems). Specifically, we examine (1) how identifying with one's community mediates subjective valuations of collectively owned tokens (i.e., a collective endowment effect) and (2) how these communities respond to market disturbances over time. Findings from our work may be used to develop intervention strategies that can insulate networked communities from the aftereffects of extreme financial shocks, particularly in the context of decision-making in risky markets.