The triple optimal combination of selling format, service provision, and blockchain implementation in a platform-based supply chain

Abstract

In a platform-based supply chain, an online platform can act as a reseller (R) or a marketplace (A) for the manufacturer. Under each selling format, sales services can be provided by the manufacturer (M) or the platform (I). Besides, facing the problem of counterfeits and consumer mistrust, the platform can implement blockchain as a solution (B) or not (N). The combination of selling format selection strategy, service provision strategy, and blockchain implementation strategy produces 8 models: NMR, NMA, NIR, NIA, BMR, BMA, BIR, and BIA. On this basis, we explore the interaction of the three strategies and obtain a triple optimal combination (TOC). We find that blockchain implementation is always beneficial to the manufacturer and consumers, but blockchain will only be implemented by the platform and be beneficial to society when certain conditions are met. Under the reselling format, the manufacturer always prefers to authorize services to the platform; under the agency selling format, the manufacturer decides on the service provider according to commission rates. Based on the double optimal equilibrium, we further analyze the platform’s selling format selection with the consideration of the manufacturer’s preference and draw some interesting conclusions: When the commission rate is moderate in the lower commission rate range, the TOC is the BMA model; when both the commission rate and service efficiency are higher in the lower commission rate range or when the commission rate is lower in the higher commission rate range and service efficiency is high, the TOC is the BIR model.