Blockchain-driven win-win strategy of economy and environment in the asymmetric competitive supply chain

In reality, it is difficult for some consumers to distinguish the attributes of green products according to the shopping experience or social trust. The blockchain has a transparent technical feature, which helps to enhance the shopping experience of consumers and identify the accurate attributes of product. In order to explore the condition of technical application, this study constructs the game-theoretical model to analyze the technical condition from the aspects of firms' profit, environmental benefit, and market effect, including two competitive manufacturers and a retailer. Moreover, this paper also investigates the equilibrium condition of government subsidy, consumer trust, and competition intensity, respectively. The main results are as follows. On the one hand, this paper finds the equilibrium condition based on specific conditions among firms. On the other hand, the study shows the equilibrium strategy with market effect, which has a feature of four-high, including the high price, high quantity, high profit, and high environmental benefit. Based on these results, the paper discusses some managerial implications to guide blockchain technology and green technology of firms. The contribution of this study is the combinative analysis of blockchain technology transparency and the equilibrium strategy for the competitive manufacturers, which reveals the value of transparency and the value of blockchain service.

Automated summary

This study constructs a game-theoretical model to analyze the technical conditions of blockchain application in terms of firms' profit, environmental benefit, and market effect. It also investigates the equilibrium conditions of government subsidy, consumer trust, and competition intensity. The study finds specific equilibrium conditions among firms and identifies an equilibrium strategy with market effect, characterized by high price, high quantity, high profit, and high environmental benefit. The paper provides managerial implications for guiding the use of blockchain technology and green technology in firms.