Sales channel competition for supply chain with the blockchain technology

Yuxuan Kang · Xianliang Shi · Shuai Liu

15 citations0/0 files storedInternational Transactions in Operational Research

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Supply Chain and Inventory Management Consumer Market Behavior and Pricing Sustainable Supply Chain Management

Abstract

Abstract The emerging blockchain‐supported platforms (BSPs) become prevalent with higher product quality and guaranteed authenticity, making the competition between BSP and traditional sales channels (TSC) gain attention. To explore the optimal operation strategies for retailers in TSC and BSP, we develop the vertically differentiated model to describe the channel competition and derive optimal decisions for two retailers. Then, the BSP's comparative advantage and the value of blockchain technology are analyzed. Next, we examine how blockchain quality disclosure and network externalities affect channel competition, as well as the impact of government policies. We find that (i) a higher quality improvement in BSP will simultaneously increase both retail prices and retailers’ profit under some circumstances. Meanwhile, the counterfeit sold in the TSC and channel switching hassle in the BSP make retailers’ products less competitive and reduce profits, respectively. (ii) Being a BSP retailer is not necessarily better, as blockchain's effect on product quality and consumer experience determines market share and profitability. Whether consumers can benefit from blockchain depends on the basic value of the BSP product and the aggregate level of consumer utility from the BSP. (iii) Blockchain‐based quality disclosures and network externalities might not always benefit BSPs, they could increase BSP retailers’ costs or increase competition in the market. (iv) The strict supervision policy reduces the TSC retailer's profit and product quality. Meanwhile, the technology subsidy policy contributes to the development of the BSP, but the BSP retailer needs to be wary of uncontrolled price increases due to policy spillover effects.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 15 citations exist upstream.

References

1978Monopoly and product quality 2020A supply chain transparency and sustainability technology appraisal model for blockchain technology 2019Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains 2021Blockchain Adoption for Combating Deceptive Counterfeits 2021Combating Copycats in the Supply Chain with Permissioned Blockchain Technology 2012Optimal Pricing in Networks with Externalities 2019Data quality challenges for sustainable fashion supply chain operations in emerging markets: Roles of blockchain, government sponsors and environment taxes 2012A dynamic product quality evaluation based pricing model for perishable food supply chains

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.