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Alfred Lehar
Christine Parlour
University of Calgary, UC Berkeley
2020
Miner Collusion and the Bitcoin Protocol

Bitcoin users can offer fees to miners who record their transactions in the Blockchain. The authors document high variation of Bitcoin fees, not only over time, but also within blocks. Further, the blockchain rarely runs at capacity, even though fees tend to be higher when blocks are fuller, so miners appear to be leaving “money on the table.” Authors present a simple model of price discrimination to explain our results.