The Financial Economics of the Decentralized Capital Market

Dear Colleagues,

The theory of modern financial markets was derived from the concept of the complete market, as developed by Arrow and Debreu using complete and free information and market equilibrium. The application of the theory to finance procedures like net present value, the cost of capital, and the pricing of shares, options and other financial assets was carried out assuming an Arrow–Debreu complete market, despite actual financial markets being, in most cases, incomplete. The emergence of the Defi market provides a unique opportunity to build and operate a real complete market based on the Arrow–Debreu concepts. Such a market will increase the welfare of all the participants in the trade.

This Special Issue, titled “The Financial Economics of the Decentralized Capital Market”, provides an opportunity to put together a number of studies considering the way the financial market will change in response to new technology. A discussion of the potential changes in the market may lead to actual changes in the market, with the Defi market potentially becoming a part of the global financial market. Buyers and sellers may decide in which market to operate given their needs and the available assets in the different markets. 

We invite researchers and practitioners to submit original articles on the developments of financial assets and procedures that take advantage of the existing new DFI, as well as potential new financial assets that consider the experience of assets traded in the governments' control of the markets of today.

Topics may include the following:

1. The impact of DFI on market efficiency and price delivery;
2. The role of blockchain transparency in reducing information asymmetry and transaction costs;
3. The influence of smart contracts and decentralized exchanges on liquidity and market automation;
4. Is there a place for regulators in DFI?
5. Is DFI a global market?

Prof. Dr. Tamir Agmon
Dr. Ido Kallir
Guest Editors

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. International Journal of Financial Studies is an international peer-reviewed open access quarterly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

• modern financial markets 
• market equilibrium 
• financial assets 
• financial economics 
• market efficiency