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The Optimal Pricing in Blockchain-Enabled Enterprises Operation Considering Privacy Attitude and Privacy Protection

Author

Listed:
  • Shuiting Yu

    (Institute of Operations Research and Systems Engineering, College of Science, Tianjin University of Technology, Tianjin 300384, P. R. China)

  • Chenchen Wu

    (Institute of Operations Research and Systems Engineering, College of Science, Tianjin University of Technology, Tianjin 300384, P. R. China)

  • Chunming Xu

    (Institute of Operations Research and Systems Engineering, College of Science, Tianjin University of Technology, Tianjin 300384, P. R. China)

Abstract

The traceability of Blockchain Technology (BT) has been implemented widely in many industries, but coupled with this fact is that more and more consumers focus on personal privacy information security. This paper mainly studies a BT-enabled operation system with customers’ privacy preferences and enterprises’ privacy protection. From the short-term perspective, we first investigate the impacts of different privacy attitudes from consumers on the optimal pricing and privacy protection decisions of enterprises in two scenarios with and without BT. Then, we give the conditions of enterprises adopting BT. Furthermore, from the long-term perspective, when privacy protection insurance is provided for risk-averse consumers, we also investigate the evolutionary stability strategies between enterprises and consumers using the evolutionary game theory. Finally, numerical analysis is adopted to verify the theoretical results and show that privacy protection and BT are important to the operation of enterprises and the purchasing behavior of consumers.

Suggested Citation

  • Shuiting Yu & Chenchen Wu & Chunming Xu, 2023. "The Optimal Pricing in Blockchain-Enabled Enterprises Operation Considering Privacy Attitude and Privacy Protection," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 40(04), pages 1-26, August.
    • Handle: RePEc:wsi:apjorx:v:40:y:2023:i:04:n:s021759592340002x
    DOI: 10.1142/S021759592340002X
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