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How to build a cold chain supply chain system for fresh agricultural products through blockchain technology—A study of tripartite evolutionary game theory based on prospect theory

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  • Yanhu Bai
  • Hansheng Wu
  • Minmin Huang
  • Jianli Luo
  • Zhuodong Yang

Abstract

The global cold chain logistics market is witnessing a significant upswing, driven by the rising demand for perishable food products and increasing shipment volumes worldwide. Technological advancements are leading to a more intelligent and digitally enabled cold chain logistics system. However, the high loss rate of fresh agricultural products in China poses a significant threat to the country’s food security. Therefore, it is imperative to explore innovative solutions, such as blockchain, to address the challenges of traditional cold chain logistics. In this paper, inspired by the prospect theory and evolutionary game theory, we propose an evolutionary game model to analyze the behavioral strategies of the tripartite of n-level cold chain participants, consumers, and government. Using MATLAB software, the numerical simulation of the game path of this tripartite theory is conducted, and the influence of variable parameters on the evolutionary process and outcomes of the system is analyzed. The results the following: (1) The development of an effective cold chain supply chain system can be divided into three stages, and blockchain technology plays a pivotal role in creating a seamless cold chain environment. The cost of blockchain adoption, government rewards, as well as penalties can significantly influence the behavioral choices of the three stakeholders. (2) The behavior of individual cold chain participants has a strong negative externality, which can impact the behavior of others. We also find that the larger the scale of the cold chain, the lower the probability of default by the participants. (3) The government’s adoption of blockchain technology and the implementation of effective incentive policies can foster the successful development of the cold chain blockchain infrastructure. Our research contributes to the theoretical understanding of cold chain logistics decision making and policy creation for the tripartite stakeholders, including cold chain participants, consumers, and government. Our findings can serve as a valuable reference for scientific decision making and policy formulation to encourage the development of a robust cold chain supply chain system.

Suggested Citation

  • Yanhu Bai & Hansheng Wu & Minmin Huang & Jianli Luo & Zhuodong Yang, 2023. "How to build a cold chain supply chain system for fresh agricultural products through blockchain technology—A study of tripartite evolutionary game theory based on prospect theory," PLOS ONE, Public Library of Science, vol. 18(11), pages 1-27, November.
    • Handle: RePEc:plo:pone00:0294520
    DOI: 10.1371/journal.pone.0294520
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    References listed on IDEAS

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