Dynamic Pricing in a Blockchain-Enabled Dual-Channel Supply Chain

Abstract

With the rapid development of Internet technology and digital economy, many manufacturers sell their products through various channels. This paper develops Stackelberg game models by backward induction to analyze dynamic pricing decisions in a dual-channel supply chain enabled with blockchain technology. These models account for strategic consumer purchasing behaviors across sales periods. Analytical and numerical results provide insights into the pricing impacts of blockchain adoption under centralized and decentralized channel structures. Key findings indicate that blockchain adoption incentivizes channels to raise prices in early sales periods but lower prices later on. The results also reveal how consumer strategic behavior influences optimal pricing. This research contributes new knowledge on incorporating emerging blockchain technologies into retail channel design and operations.