IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v264y2023ics0925527323002062.html
   My bibliography  Save this article

Does blockchain-based traceability system guarantee information authenticity? An evolutionary game approach

Author

Listed:
  • Tan, Yiheng
  • Huang, Xiying
  • Li, Wei

Abstract

While blockchain-based traceability systems in agricultural product supply chains (APSCs) have the potential to improve operational efficiency and food safety, little literature examined the risk of traceability information being falsified before it is recorded on the blockchain. Therefore, using an evolutionary game model, this paper studies the potential falsification risk in the blockchain-based traceability system for agricultural products. The model focuses on the evolutionary path of two key stakeholders: farmers who may falsify information and blockchain platforms that may verify the authenticity of the information. Factors including government supervision and market demand are also considered. The results demonstrate that: (1) the evolutionary stable strategy of the game model depends on whether both stakeholders can benefit from information falsification after taking into account related costs and penalties; (2) when the purchasers' preference for product freshness and well-known places of origin is sufficiently high, farmers will consistently engage in the information falsification, with the platform allowing such behavior to persist; (3) if the downstream stakeholders attach importance to the authenticity of traceability information recorded on the blockchain, this will reduce farmers' willingness to falsify information and increase blockchain platforms’ willingness to verify authenticity; these two effects can lead to situations where the optimal evolutionary stable strategy exists. Based on the results, we discuss the details of blockchain-enabled audits to curb information falsification. The findings of this paper call attention to preventing falsification and developing guidelines for blockchain technology adoptions in APSCs.

Suggested Citation

  • Tan, Yiheng & Huang, Xiying & Li, Wei, 2023. "Does blockchain-based traceability system guarantee information authenticity? An evolutionary game approach," International Journal of Production Economics, Elsevier, vol. 264(C).
  • Handle: RePEc:eee:proeco:v:264:y:2023:i:c:s0925527323002062
    DOI: 10.1016/j.ijpe.2023.108974
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323002062
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2023.108974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lee, Sunghee & Yoo, Shijin & Kim, Daeki, 2016. "When is servitization a profitable competitive strategy?," International Journal of Production Economics, Elsevier, vol. 173(C), pages 43-53.
    2. Yunke Mai & Bin Hu & Saša Pekeč, 2023. "Courteous or Crude? Managing User Conduct to Improve On-Demand Service Platform Performance," Management Science, INFORMS, vol. 69(2), pages 996-1016, February.
    3. Saak, Alexander E., 2016. "Traceability and reputation in supply chains," International Journal of Production Economics, Elsevier, vol. 177(C), pages 149-162.
    4. Daniel Friedman, 1998. "On economic applications of evolutionary game theory," Journal of Evolutionary Economics, Springer, vol. 8(1), pages 15-43.
    5. Ritzberger, Klaus & Weibull, Jorgen W, 1995. "Evolutionary Selection in Normal-Form Games," Econometrica, Econometric Society, vol. 63(6), pages 1371-1399, November.
    6. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    7. Fang, Debin & Zhao, Chaoyang & Yu, Qian, 2018. "Government regulation of renewable energy generation and transmission in China’s electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 775-793.
    8. Gabriella M. Hastig & ManMohan S. Sodhi, 2020. "Blockchain for Supply Chain Traceability: Business Requirements and Critical Success Factors," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 935-954, April.
    9. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    10. Glynn T. Tonsor, 2011. "Consumer inferences of food safety and quality," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(2), pages 213-235, June.
    11. Yu, Yanan & He, Yong & Zhao, Xuan, 2021. "Impact of demand information sharing on organic farming adoption: An evolutionary game approach," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    12. Giuseppe Varavallo & Giuseppe Caragnano & Fabrizio Bertone & Luca Vernetti-Prot & Olivier Terzo, 2022. "Traceability Platform Based on Green Blockchain: An Application Case Study in Dairy Supply Chain," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    13. Yi, Yuyin & Yang, Haishen, 2017. "Wholesale pricing and evolutionary stable strategies of retailers under network externality," European Journal of Operational Research, Elsevier, vol. 259(1), pages 37-47.
    14. Garrard, Robert & Fielke, Simon, 2020. "Blockchain for trustworthy provenances: A case study in the Australian aquaculture industry," Technology in Society, Elsevier, vol. 62(C).
    15. Tsolakis, Naoum & Niedenzu, Denis & Simonetto, Melissa & Dora, Manoj & Kumar, Mukesh, 2021. "Supply network design to address United Nations Sustainable Development Goals: A case study of blockchain implementation in Thai fish industry," Journal of Business Research, Elsevier, vol. 131(C), pages 495-519.
    16. Bumblauskas, Daniel & Mann, Arti & Dugan, Brett & Rittmer, Jacy, 2020. "A blockchain use case in food distribution: Do you know where your food has been?," International Journal of Information Management, Elsevier, vol. 52(C).
    17. Lixia Liu & Yuchao Zhu & Shubing Guo, 2020. "The Evolutionary Game Analysis of Multiple Stakeholders in the Low-Carbon Agricultural Innovation Diffusion," Complexity, Hindawi, vol. 2020, pages 1-12, February.
    18. Monica Salvioli & Johan Dubbeldam & Kateřina Staňková & Joel S Brown, 2021. "Fisheries management as a Stackelberg Evolutionary Game: Finding an evolutionarily enlightened strategy," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-20, January.
    19. Tönnissen, Stefan & Teuteberg, Frank, 2020. "Analysing the impact of blockchain-technology for operations and supply chain management: An explanatory model drawn from multiple case studies," International Journal of Information Management, Elsevier, vol. 52(C).
    20. Guangshu Xu & Hao Wu & Yongsheng Liu & Chia-Huei Wu & Sang-Bing Tsai, 2020. "A Research on Fresh-Keeping Strategies for Fresh Agricultural Products from the Perspective of Green Transportation," Discrete Dynamics in Nature and Society, Hindawi, vol. 2020, pages 1-12, February.
    21. Xin Su & Shengsen Duan & Shubing Guo & Haolong Liu, 2018. "Evolutionary Games in the Agricultural Product Quality and Safety Information System: A Multiagent Simulation Approach," Complexity, Hindawi, vol. 2018, pages 1-13, March.
    22. Liu, Hengyu, 2022. "Combating unethical producer behavior: The value of traceability in produce supply chains," International Journal of Production Economics, Elsevier, vol. 244(C).
    23. Luona Song & Yiqing Luo & Zixi Chang & Chunhua Jin & Merveille Nicolas, 2022. "Blockchain Adoption in Agricultural Supply Chain for Better Sustainability: A Game Theory Perspective," Sustainability, MDPI, vol. 14(3), pages 1-21, January.
    24. Hongli Chen & Xiuli Liu, 2020. "The Formation Mechanism of Green Dairy Industry Chain from the Perspective of Green Sustainable Development," Complexity, Hindawi, vol. 2020, pages 1-12, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Davies, Jennifer & Sharifi, Hossein & Lyons, Andrew & Forster, Rick & Elsayed, Omar Khaled Shokry Mohamed, 2024. "Non-fungible tokens: The missing ingredient for sustainable supply chains in the metaverse age?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Büşra Ayan & Elif Güner & Semen Son-Turan, 2022. "Blockchain Technology and Sustainability in Supply Chains and a Closer Look at Different Industries: A Mixed Method Approach," Logistics, MDPI, vol. 6(4), pages 1-39, December.
    2. Huang, Xingjun & Lin, Yun & Lim, Ming K. & Zhou, Fuli & Ding, Rui & Zhang, Zusheng, 2022. "Evolutionary dynamics of promoting electric vehicle-charging infrastructure based on public–private partnership cooperation," Energy, Elsevier, vol. 239(PD).
    3. Caihua Zhou & Hualin Xie & Xinmin Zhang, 2019. "Does Fiscal Policy Promote Third-Party Environmental Pollution Control in China? An Evolutionary Game Theoretical Approach," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    4. Caichun Chai & Eilin Francis & Tiaojun Xiao, 2021. "Supply chain dynamics with assortative matching," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 179-206, January.
    5. Liu, Yang & Cui, Mengying & Gao, Xubin, 2023. "Building up scrap steel bases for perfecting scrap steel industry chain in China: An evolutionary game perspective," Energy, Elsevier, vol. 278(C).
    6. Liu, Shuai & Hua, Guowei & Kang, Yuxuan & Edwin Cheng, T.C. & Xu, Yadong, 2022. "What value does blockchain bring to the imported fresh food supply chain?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 165(C).
    7. Yuling Sun & Xiaomei Song & Yihao Jiang & Jian Guo, 2023. "Strategy Analysis of Fresh Agricultural Enterprises in a Competitive Circumstance: The Impact of Blockchain and Consumer Traceability Preferences," Mathematics, MDPI, vol. 11(5), pages 1-18, February.
    8. Qianwen Wu & Qiangqiang Wang & Yongwu Dai, 2023. "Analysis of Strategy Selection in Third-Party Governance of Rural Environmental Pollution," Sustainability, MDPI, vol. 15(11), pages 1-19, May.
    9. Wang, Xinru & Long, Ruyin & Chen, Hong & Wang, Yujie & Shi, Yanmin & Yang, Shuhan & Wu, Meifen, 2024. "How to promote the trading in China's green electricity market? Based on environmental perceptions, renewable portfolio standard and subsidies," Renewable Energy, Elsevier, vol. 222(C).
    10. Jiali Wang & Xue Peng & Yunan Du & Fulin Wang, 2022. "A tripartite evolutionary game research on information sharing of the subjects of agricultural product supply chain with a farmer cooperative as the core enterprise," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(1), pages 159-177, January.
    11. Sandholm,W.H., 2003. "Excess payoff dynamics, potential dynamics, and stable games," Working papers 5, Wisconsin Madison - Social Systems.
    12. Jin, Tao & Jiang, Yulian & Liu, Xingwen, 2023. "Evolutionary game analysis of the impact of dynamic dual credit policy on new energy vehicles after subsidy cancellation," Applied Mathematics and Computation, Elsevier, vol. 440(C).
    13. Hui Yu & Wei Wang & Baohua Yang & Cunfang Li, 2019. "Evolutionary Game Analysis of the Stress Effect of Cross-Regional Transfer of Resource-Exhausted Enterprises," Complexity, Hindawi, vol. 2019, pages 1-16, November.
    14. Ning, Jiajun & Xiong, Lixin, 2024. "Analysis of the dynamic evolution process of the digital transformation of renewable energy enterprises based on the cooperative and evolutionary game model," Energy, Elsevier, vol. 288(C).
    15. Demichelis, Stefano & Ritzberger, Klaus, 2003. "From evolutionary to strategic stability," Journal of Economic Theory, Elsevier, vol. 113(1), pages 51-75, November.
    16. Faggini, Marisa & Parziale, Anna, 2011. "Fitness landscape and tax planning: NK model for fiscal federalism," MPRA Paper 33770, University Library of Munich, Germany.
    17. Deqing Ma & Pengcheng Ma & Jinsong Hu, 2024. "The Impact of Blockchain Technology Adoption on an E-Commerce Closed-Loop Supply Chain Considering Consumer Trust," Sustainability, MDPI, vol. 16(4), pages 1-41, February.
    18. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2023. "Turn a blind eye? E-tailer's blockchain participation considering upstream competition between copycats and brands," International Journal of Production Economics, Elsevier, vol. 265(C).
    19. Yong He & Peng He & Feifei Xu & Chunming (Victor) Shi, 2019. "Sustainable tourism modeling: Pricing decisions and evolutionarily stable strategies for competitive tour operators," Tourism Economics, , vol. 25(5), pages 779-799, August.
    20. Binbin He & Haiya Cai & Yingchen Ji & Siyu Zhu, 2023. "Supply Chain Green Manufacturing and Green Marketing Strategies under Network Externality," Sustainability, MDPI, vol. 15(18), pages 1-18, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:264:y:2023:i:c:s0925527323002062. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.