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Pricing decision and channel selection of fresh agricultural products dual-channel supply chain based on blockchain

Author

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  • Di Wang
  • Xiaoyue Tian
  • Mengchao Guo

Abstract

The application of blockchain can effectively improve the efficiency of fresh agricultural product circulation and consumer trust, but it can also increase investment costs. In this context, this paper introduces parameters such as blockchain unit variable cost, the level of blockchain technology investment, and consumer channel preference in two dual-channel supply chain systems dominated by fresh agricultural product manufacturers: online direct sales and distribution. It compares and analyzes pricing and channel selection strategies in both cases of not using and using blockchain. The research shows that when blockchain is used, manufacturer profits are higher in the direct sales model than in the distribution model. Traditional retailers’ profits are lower in the direct sales model than in the distribution model. Total supply chain profits are higher in the direct sales model than in the distribution model, and they exhibit an inverted "U" shape as the level of blockchain investment increases. In the online direct sales model, if the blockchain technology unit variable cost is within a certain threshold range, manufacturer profits, traditional retailer profits, and total supply chain profits are all higher than when blockchain technology is not used. In the online distribution model, when the blockchain variable cost and blockchain usage level meet certain conditions, manufacturers, traditional retailers, and online distributors all have higher profits when using blockchain technology than when not using it. This study provides theoretical guidance for the practical application of blockchain technology in dual-channel fresh agricultural product supply chains.

Suggested Citation

  • Di Wang & Xiaoyue Tian & Mengchao Guo, 2024. "Pricing decision and channel selection of fresh agricultural products dual-channel supply chain based on blockchain," PLOS ONE, Public Library of Science, vol. 19(3), pages 1-27, March.
  • Handle: RePEc:plo:pone00:0297484
    DOI: 10.1371/journal.pone.0297484
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    References listed on IDEAS

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    4. Zhou, Yong-Wu & Guo, Jinsen & Zhou, Wenhui, 2018. "Pricing/service strategies for a dual-channel supply chain with free riding and service-cost sharing," International Journal of Production Economics, Elsevier, vol. 196(C), pages 198-210.
    5. Jasur Salikhov & Saidjahon Hayrutdinov & Timur K. Muminov, 2023. "Blockchain-Enabled Sustainable Supply Chain under Information Sharing and Recovery Quality Efforts," Sustainability, MDPI, vol. 15(5), pages 1-14, February.
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