IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v89y2026icp402-420.html

Duopolistic blockchain adoption strategies with risky green R&D

Author

Listed:
  • Lei, Xiaoyang
  • Yang, Donghui

Abstract

Whereas firms have increasingly applied blockchain to facilitate consumers accurately evaluating the green R&D of their products, the related literature is still rare, especially under the consideration of R&D risk. This article examines the blockchain adoption strategies of duopolistic firms that engage in green R&D with R&D risk through a game-theoretic model. It first indicates that due to the differentiation effect, firms may obtain lower expected profits as the R&D success probability increases under all blockchain adoption strategies. Second, it confirms that firms' blockchain adoption strategies are jointly influenced by both R&D risk and unit blockchain adoption cost. Interestingly, one firm elects blockchain while the other firm abandons for the low R&D success probability and the moderate adoption cost. Finally, it finds that more blockchain adoption does not always benefit consumers due to the high charged prices. These findings provide fresh economic implications for competitive firms on their green practices.

Suggested Citation

  • Lei, Xiaoyang & Yang, Donghui, 2026. "Duopolistic blockchain adoption strategies with risky green R&D," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 402-420.
    • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:402-420
    DOI: 10.1016/j.eap.2025.12.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592625004953
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2025.12.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ji, Guojun & Zhou, Shu & Lai, Kee-Hung & Tan, Kim Hua & Kumar, Ajay, 2022. "Timing of blockchain adoption in a supply chain with competing manufacturers," International Journal of Production Economics, Elsevier, vol. 247(C).
    2. Lan, Minghui & Zhang, Guangli & Yan, Wei & Qi, Fen & Qin, Lihua, 2024. "Greening through courts:Environmental law enforcement and corporate green innovation," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 223-242.
    3. Lu, Qihui & Liao, Changhua & Shi, Victor & Xu, Zeping, 2024. "Implementation mode selection for blockchain technology in green product traceability," International Journal of Production Economics, Elsevier, vol. 276(C).
    4. Chao‐Cheng Mai & Shih‐Chuan Lin, 2021. "The effects of uncertainties over R&D policy or market demand on R&D levels," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 1048-1056, June.
    5. Poyago-Theotoky, J.A., 2010. "Corrigendum to "The Organization of R&D and Environmental Policy" [J. Econ. Behav. Org. 62 (2007) 63-75]," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 449-449, November.
    6. Zhu, Zhaohui & Tan, Yafei, 2022. "Can green industrial policy promote green innovation in heavily polluting enterprises? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 59-75.
    7. Guojun Ji & Shu Zhou & Kee-Hung Lai & Kim Hua Tan & Ajay Kumar, 2022. "Timing of blockchain adoption in a supply chain with competing manufacturers," Post-Print hal-03628403, HAL.
    8. Mingqing Xing & Tingting Tan & Xia Wang & Linlin Liu, 2020. "Environmental R&D and privatization in a mixed duopoly market," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(1), pages 93-105, January.
    9. Vincent Boitier, 2025. "Monopolistic competition under frictional entries," Post-Print hal-05137728, HAL.
    10. Zou, Ganna & Zhang, Shengbo & Gan, Xingqiong & Cheng, Hua, 2025. "How government green procurement incentivises corporate green innovation? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1605-1626.
    11. Wang, Haijun & Li, Lingchunzi & Sun, Jiaxuan & Shen, Minghao, 2023. "Carbon emissions abatement with duopoly generators and eco-conscious consumers: Carbon tax vs carbon allowance," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 786-804.
    12. Xing Gao & Ying Wang, 2023. "Competitive analysis of R&D investment with R&D budget constraint and R&D uncertainty," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2438-2456, June.
    13. Gao, Jinqi & Lu, Fan, 2025. "Evaluating green policies: A comparative analysis of subsidies and public procurement in green transition," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1675-1694.
    14. Jianhua Zhu & Taiwen Feng & Ying Lu & Wenbo Jiang, 2024. "Using blockchain or not? A focal firm's blockchain strategy in the context of carbon emission reduction technology innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3505-3531, May.
    15. Hong, Zhaofu & Guo, Xiaolong, 2019. "Green product supply chain contracts considering environmental responsibilities," Omega, Elsevier, vol. 83(C), pages 155-166.
    16. Bosetti, Valentina & Tavoni, Massimo, 2009. "Uncertain R&D, backstop technology and GHGs stabilization," Energy Economics, Elsevier, vol. 31(Supplemen), pages 18-26.
    17. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    18. Xu, Jian & Sheng, Yan, 2023. "Regulations, politics, and firm green innovation," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 13-32.
    19. Mingqing Xing & Sang‐Ho Lee, 2023. "Non‐cooperative and cooperative environmental R&D under environmental corporate social responsibility with green managerial coordination," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(5), pages 2684-2696, July.
    20. Liu, Samuel Shuai & Hua, Guowei & Ma, Benedict Jun & Cheng, T.C.E., 2023. "Competition between green and non-green products in the blockchain era," International Journal of Production Economics, Elsevier, vol. 264(C).
    21. Kun, Qin & Chang, Yao & Runkai, Niu, 2024. "The impact of environmental regulation on enterprise green innovation," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1933-1944.
    22. Zhang, Zhiming & Ren, Da & Lan, Yanfei & Yang, Shanxue, 2022. "Price competition and blockchain adoption in retailing markets," European Journal of Operational Research, Elsevier, vol. 300(2), pages 647-660.
    23. Vincent Boitier, 2025. "Monopolistic competition under frictional entries," Oxford Economic Papers, Oxford University Press, vol. 77(1), pages 91-118.
    24. Xing, Mingqing & Tan, Tingting & Wang, Xia, 2021. "Emission taxes and environmental R&D risk choices in a duopoly market," Economic Modelling, Elsevier, vol. 101(C).
    25. Yongtao Peng & Wei Wang & Shuanglin Li & Eleonora Veglianti, 2022. "Competition and cooperation in the dual-channel green supply chain with customer satisfaction," Post-Print hal-04522083, HAL.
    26. Peng, Yongtao & Wang, Wei & Li, Shuanglin & Veglianti, Eleonora, 2022. "Competition and cooperation in the dual-channel green supply chain with customer satisfaction," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 95-113.
    27. Hauenschild, Nils, 2003. "On the role of input and output spillovers when R&D projects are risky," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1065-1089, October.
    28. Xu, Lili & Chen, Yuyan & Lee, Sang-Ho, 2022. "Emission tax and strategic environmental corporate social responsibility in a Cournot–Bertrand comparison," Energy Economics, Elsevier, vol. 107(C).
    29. Zhi-Ping Fan & Xue-Yan Wu & Bing-Bing Cao, 2022. "Considering the traceability awareness of consumers: should the supply chain adopt the blockchain technology?," Annals of Operations Research, Springer, vol. 309(2), pages 837-860, February.
    30. Tatsuro Iwaisako, 2025. "Welfare-maximizing patent length in a dynamic general equilibrium model," Oxford Economic Papers, Oxford University Press, vol. 77(1), pages 19-41.
    31. Shuai Huang & Wenyu Hou, 2025. "Blockchain‐Driven Green Traceability: Greener or More Profitable?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(5), pages 2810-2837, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Samuel Shuai & Ma, Benedict Jun & Zhang, Weijian & Cheng, Edwin T.C. & Li, Xiaowei & Ng, Chi-To, 2025. "Eliminating information asymmetry in supply chains: Blockchain-driven or not," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 201(C).
    2. Liao, Changhua & Lu, Qihui & Ghamat, Salar & Cai, Helen Huifen, 2025. "Blockchain adoption and coordination strategies for green supply chains considering consumer privacy concern," European Journal of Operational Research, Elsevier, vol. 323(2), pages 525-539.
    3. Yuyan Wang & Qiuchen Wu & T. C. E. Cheng & Yulin Sun, 2025. "Supply chain modelling considering blockchain improvement and publicity with fairness concern," Journal of Intelligent Manufacturing, Springer, vol. 36(1), pages 681-702, January.
    4. Chen Wei & Chen Yuankun & Huang Xin, 2025. "Low-carbon technology investment strategies with blockchain under subsidy policies," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-22, December.
    5. Zou, Zichen & Liu, Mingwu & Gong, Yu & Dong, Xinwei & Duan, Jiang, 2025. "Examining the effects of blockchain technology on sales models: A study from the dual perspectives of economy and environment," International Journal of Production Economics, Elsevier, vol. 281(C).
    6. Cai, Jianhu & Cao, Zhengang & Shang, Jennifer, 2025. "Blockchain adoption in a green supply chain: Considering information asymmetry of consumers’ privacy concern," International Journal of Production Economics, Elsevier, vol. 279(C).
    7. Wu, Jianghua & Yao, Junzhu & Wang, Yuqian, 2025. "Platform's role in green vs. non-green product competition: Blockchain transparency and selling contract selection," International Journal of Production Economics, Elsevier, vol. 288(C).
    8. Lei Wang & Tao Xu & Tingqiang Chen, 2025. "Optimal Strategies in Green Supply Chains When Considering Consumers’ Green Preferences and Government Subsidies," Mathematics, MDPI, vol. 13(13), pages 1-22, July.
    9. Li, Zhiwen & Xu, Xianhao & Bai, Qingguo & Chen, Cheng & Wang, Hongwei & Xia, Peng, 2023. "Implications of information sharing on blockchain adoption in reducing carbon emissions: A mean–variance analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 178(C).
    10. Lu, Qihui & Liao, Changhua & Chen, Xiangfeng, 2024. "The blockchain adoption strategies of online retailer in a dual-channel supply chain," International Journal of Production Economics, Elsevier, vol. 274(C).
    11. Liu, Yue & Xin, Baogui & Xie, Lei, 2025. "Strategic NFT adoption to combat digital piracy," Technovation, Elsevier, vol. 141(C).
    12. Tianli,, 2024. "Endogenous choice of corporate social responsibility and emissions tax: What impact do green consumers have on economic welfare?," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    13. Wang, Chenyu & Atallah, Gamal, 2025. "Carbon tax in a duopoly with asymmetric spillovers and symmetric contributions," Economic Modelling, Elsevier, vol. 148(C).
    14. Hsieh, Chung-Chi & Wu, Ching-Yu & Lathifah, Artya, 2025. "Cross-channel influence of blockchain technology on green supply chains under asymmetric retail platform competition," International Journal of Production Economics, Elsevier, vol. 283(C).
    15. Yang, Yimin & Yi, Chaoqun & Li, Hailing & Dong, Xuesong & Yang, Lulu & Wang, Zilong, 2025. "An analysis on the role of artificial intelligence in green supply chains," Technological Forecasting and Social Change, Elsevier, vol. 217(C).
    16. Rizwan Manzoor & B. S. Sahay & Sujeet Kumar Singh, 2025. "Blockchain technology in supply chain management: an organizational theoretic overview and research agenda," Annals of Operations Research, Springer, vol. 348(3), pages 1307-1354, May.
    17. Zengxian Li & Aijun Liu & Jiaxin Li & Jiamin Xiong & Hui Lu, 2023. "Manufacturer encroachment strategies and decision timing considering the product traceability preferences under e‐commerce," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(7), pages 4041-4067, October.
    18. Wang, Yingtong & Ji, Xiaoyu & Lin, Bei, 2025. "The choice of recycling and remanufacturing strategy for power battery supply chain under carbon border adjustment mechanism and cap-and-trade," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 203(C).
    19. Chen, Shuting & Yang, Lei & Kou, Qi, 2025. "Platform's blockchain introduction strategy with considering competition between new and refurbished products," International Journal of Production Economics, Elsevier, vol. 280(C).
    20. Zhao, Qingli & Fan, Zhi-Ping & Sun, Minghe, 2024. "Manufacturer blockchain technology adoption strategies for different sales channels in an e-commerce platform supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:402-420. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.