Abstract
In shipping practice, ocean shipping (OS) companies launch their own cargo-canvassing channel to diversify revenue streams and further develop blockchain technology to improve their shipping service level. This study employs a game theory model to investigate the value of the OS company (i.e., upstream) encroaching and the application of blockchain technology by engaging in strategic interactions. Through our investigation, we find that it is disadvantageous for the OS company to encroach on the shipping market (apply blockchain technology) when the cost of encroachment (blockchain) is relatively high. Interestingly, by analyzing strategic interactions, we find that the application of blockchain technology influences the encroachment pattern, and the encroachment incentivizes the OS company to apply blockchain technology when the market demand for the encroaching channel is moderate. More interestingly, we innovatively propose the synergy, dysergy and mutual exclusivity effect to demonstrate our analysis. Furthermore, we discuss the impacts of the value of OS company’s encroachment and application of blockchain technology on the freight forwarder, and propose a “Blockchain Technology Compensation” (BTC) coordination mechanism to cope with the “win-lose” situation caused by the application of blockchain technology by the OS company.
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