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The impacts of blockchain adoption on pricing and efforts decisions in online game supply chains with information asymmetry

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  • Tian, Longmei
  • Hu, Benyong

Abstract

This study investigates the impact of blockchain adoption on online game supply chain pricing and enterprises' investment decisions in situations of information asymmetry. Our analyses reveal that, first, with high market demand, enterprises will consistently adopt blockchain only when the combined effect of input-output on quality is significant and when players' price tolerance after blockchain adoption is moderate. Additionally, when the combined input-output effect on quality is minimal, and players’ price tolerance after blockchain adoption is more significant, enterprises will consistently adopt blockchain with low market demand. Second, when players have a higher price tolerance after blockchain adoption, product pricing and platform efforts can be enhanced regardless of market demand state. However, market demand state and price elasticity will significantly impact product pricing and platform effort decisions when players have less price tolerance after blockchain adoption. Third, developers tend to improve the quality of the game product in blockchain adoption when market demand is high. In contrast, when market demand is low, developers may prefer to increase the quality effort using blockchain if and only if players have higher price tolerance after adopting it.

Suggested Citation

  • Tian, Longmei & Hu, Benyong, 2023. "The impacts of blockchain adoption on pricing and efforts decisions in online game supply chains with information asymmetry," International Journal of Production Economics, Elsevier, vol. 266(C).
    • Handle: RePEc:eee:proeco:v:266:y:2023:i:c:s0925527323002621
    DOI: 10.1016/j.ijpe.2023.109030
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