Revolutionizing Crowdworking Campaigns: Conquering Adverse Selection and Moral Hazard with the Help of Smart Contracts
Journal
International Conference on Information Systems (ICIS)
Type
conference paper
Date Issued
2023-12-13
Author(s)
Anna Hupe
;
Ulrich Bretschneider
Research Team
IWI6
Abstract
Crowdworking is increasingly being applied by companies to outsource tasks beyond their core competencies flexibly and cost-effectively to an unknown group. However, the anonymous and financially incentivized nature of crowdworkers creates information asymmetries and conflicts of interest, leading to inefficiencies and intensifying the principal-agent problem. Our paper offers a solution to the widespread problem of inefficient Crowdworking campaigns. We first derive the currently applied Crowdworking campaign process based on a qualitative study. Subsequently, we identify the broadest adverse selection and moral hazard problems in the process. We then analyze how the blockchain application of smart contracts can counteract those challenges and develop a process model that maps a Crowdworking campaign using smart contracts. We explain how our developed process significantly reduces adverse selection and moral hazard at each stage. Thus, our research provides approaches to make online labor more attractive and transparent for companies and online workers.
Language
English
Keywords
Crowdwork
Principal Agent Theorem
Adverse Selection
Moral Hazard
Smart Contract
HSG Classification
contribution to scientific community
Refereed
Yes
Pages
17
Event Title
International Conference on Information Systems (ICIS)
Event Location
Hyderabad, India
Event Date
10-13 Dec 2023
Subject(s)
Division(s)
File(s)![Thumbnail Image]()
open.access
Name
JML_955.pdf
Size
511.95 KB
Format
Adobe PDF
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