Modeling Blockchain Investment in Data-Intensive Supply Chains: A Game-Theoretic Analysis of Power Structures

Abstract

This study advances the hypothesis that supply chain power structure is a critical contingency factor for realizing investment value from integrating blockchain and big data. We develop a game-theoretic model of a two-tier supply chain to analyze investment decisions. The model examines cost–benefit dynamics under supplier-led, manufacturer-led, and balanced power structures and proposes a coordination mechanism to align incentives. Results demonstrate that power structure determines pricing and profit distribution, allowing the dominant party to capture a larger benefit share. Furthermore, power structure systematically interacts with technological performance: profitability increases with customer heterogeneity satisfaction and demand enhancement but can be eroded by a high technology cost coefficient that triggers disproportionate investment. We identify a critical investment cost threshold for achieving Pareto improvement. Finally, the demand premium from enhanced transparency ensures economic viability even when adoption increases prices. These insights offer strategic frameworks for blockchain investment tailored to specific power distributions.