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Blockchain technology for supply chain traceability: A game-theoretic analysis between e-platforms.

Qian Chen¹, Xuejian Yang², Dan Yang³

¹School of Management, Hefei University of Technology, Hefei, China.

|April 25, 2024

Summary

This summary is machine-generated.

Blockchain adoption in supply chains impacts e-tailer profits. High cost sensitivity leads to reduced effort, while low sensitivity encourages more effort for greater gains.

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Area of Science:

Operations Research
Supply Chain Management
Information Systems

Background:

The rapid advancement and integration of blockchain technology present new dynamics in supply chain systems.
E-commerce platforms (e-tailers) face strategic decisions regarding blockchain implementation versus traditional operations.

Purpose of the Study:

To analyze the impact of blockchain technology on e-tailer competition and profitability in a dual-channel supply chain.
To investigate consumer sensitivity to blockchain features and its effect on demand.
To determine the optimal effort levels for e-tailers based on cost sensitivity and blockchain adoption.

Main Methods:

Development of demand functions incorporating consumer sensitivity to blockchain attributes.
Application of the Stackelberg game model to compare e-tailer profits under different blockchain implementation scenarios.
Analysis of a critical threshold in cost sensitivity to effort guiding e-tailer strategic decisions.

Main Results:

A critical threshold exists for cost sensitivity to effort, influencing e-tailers' decision to implement effort.
High cost sensitivity prompts e-tailers to reduce effort for increased profits; low sensitivity encourages greater effort.
Blockchain's traceability characteristic enhances product brand effects, influencing inter-e-tailer competition.

Conclusions:

Blockchain technology adoption significantly alters competitive strategies and profit outcomes for e-tailers.
The study's findings remain robust across different supply chain configurations, including agency agreements.
Strategic effort management is crucial for e-tailers, contingent on their cost sensitivity and blockchain adoption.