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Quality decision and demand information sharing: The role of blockchain adoption
•The impact of blockchain adoption on product quality decision.•The optimal combination of information sharing and blockchain adoption strategy.•Blockchain adoption can alleviate the double marginalization effect.•Blockchain adoption can encourage the online platform to share demand information. In...
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Published in: | Computers & industrial engineering 2024-03, Vol.189, p.109991, Article 109991 |
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Main Authors: | , , |
Format: | Article |
Language: | English |
Subjects: | |
Citations: | Items that this one cites Items that cite this one |
Online Access: | Get full text |
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Summary: | •The impact of blockchain adoption on product quality decision.•The optimal combination of information sharing and blockchain adoption strategy.•Blockchain adoption can alleviate the double marginalization effect.•Blockchain adoption can encourage the online platform to share demand information.
In reality, numerous manufacturers adopt blockchain technology to eliminate consumers distrust in product quality which can expand the market demand. Advanced information technology and vast amounts of consumer data have empowered online retail platforms to share demand information with manufacturers, which can motivate manufacturers to improve product quality. However, the double marginalization effect is potentially exacerbated. Considering quality distrust, this paper develops a multi-stage game-theoretical model to study the interplay between blockchain adoption and information sharing strategy. The analysis not only investigates the dependence of the interplay on the quality cost coefficient and the unit cost of blockchain adoption, but also endeavors to determine the equilibrium strategy combination of blockchain adoption and information sharing. The findings indicate that blockchain adoption can alleviate the double marginalization effect and improve product quality conditionally. Additionally, irrespective of the level of consumers trust, the manufacturer exhibits a propensity to embrace blockchain technology. This adoption of blockchain has the potential to incentivize the online platform to share demand information under certain conditions. Several extended modelling analyses are conducted to check the robustness of the main model and additional insights are obtained. |
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ISSN: | 0360-8352 1879-0550 |
DOI: | 10.1016/j.cie.2024.109991 |