Id like to share a research paper Ive recently completed titled A Transaction Fee Market Exists Without a Block Size Limit. I formalizes the ideas from Cypherdoc, Adrian-X, thezerg, Rocks, ZB, Justus Ranvier, Solex, Melbustus, Majamalu and many others here. In addition to presenting some useful charts such as the cost to produce large spam blocks, I think the paper convincingly demonstrates that due to the orphaning cost, a block size limit is not necessary to ensure a functioning fee market.
The paper does not argue that a block size limit is unnecessary in general, and in fact brings up questions related to mining cartels and the size of the UTXO set.
It can be downloaded in PDF format here:
https://dl.dropboxusercontent.com/u/43331625/feemarket.pdf
Or viewed with a web-browser here:
https://www.scribd.com/doc/273443462/A-Transaction-Fee-Market-Exists-Without-a-Block-Size-Limit
And here is its Reddit thread:
https://www.reddit.com/r/Bitcoin/comments/3fpuld/a_transaction_fee_market_exists_without_a_block/
The paper does not argue that a block size limit is unnecessary in general, and in fact brings up questions related to mining cartels and the size of the UTXO set.
It can be downloaded in PDF format here:
https://dl.dropboxusercontent.com/u/43331625/feemarket.pdf
Or viewed with a web-browser here:
https://www.scribd.com/doc/273443462/A-Transaction-Fee-Market-Exists-Without-a-Block-Size-Limit
And here is its Reddit thread:
https://www.reddit.com/r/Bitcoin/comments/3fpuld/a_transaction_fee_market_exists_without_a_block/