Cargando…

Price competition and blockchain technology adoption strategies of agents on the digital platform

The rise of digital platforms intensifies the price competition among agents. Agents often use low price strategies to attract consumers. However, the low-price strategy is often filled with false information and consumers perceive the non-truthfulness of the price information. Then, consumers’ trus...

Descripción completa

Detalles Bibliográficos
Autores principales: Wang, Linfeng, Xie, Guo, Chen, Chen
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Frontiers Media S.A. 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9615551/
https://www.ncbi.nlm.nih.gov/pubmed/36312067
http://dx.doi.org/10.3389/fpsyg.2022.984928
_version_ 1784820445629906944
author Wang, Linfeng
Xie, Guo
Chen, Chen
author_facet Wang, Linfeng
Xie, Guo
Chen, Chen
author_sort Wang, Linfeng
collection PubMed
description The rise of digital platforms intensifies the price competition among agents. Agents often use low price strategies to attract consumers. However, the low-price strategy is often filled with false information and consumers perceive the non-truthfulness of the price information. Then, consumers’ trust in agents gradually decreases, which inhibits the growth of online shopping. Blockchain is seen as a solution to the trust crisis between agents and consumers. Our research is based on two competing agents selling the same type of goods on the same platform. We discuss agents’ blockchain technology application strategies in three scenarios, which are defined by whether agents choose to apply blockchain technology to improve consumer trust. The results show that the application of blockchain technology is beneficial to agents only when consumer trust is low. Furthermore, the YN strategy is regarded as a possible equilibrium strategy, which depends on the blockchain application cost and consumer trust. Some extended cases are discussed for post-blockchain consumer welfare, cost-sharing contracts, dishonesty penalties, and variable blockchain costs, and the results show that the analysis in this manuscript is robust. Our findings have important practical significance for promoting the application of blockchain technology and alleviating the problem of price information asymmetry in platform shopping.
format Online
Article
Text
id pubmed-9615551
institution National Center for Biotechnology Information
language English
publishDate 2022
publisher Frontiers Media S.A.
record_format MEDLINE/PubMed
spelling pubmed-96155512022-10-29 Price competition and blockchain technology adoption strategies of agents on the digital platform Wang, Linfeng Xie, Guo Chen, Chen Front Psychol Psychology The rise of digital platforms intensifies the price competition among agents. Agents often use low price strategies to attract consumers. However, the low-price strategy is often filled with false information and consumers perceive the non-truthfulness of the price information. Then, consumers’ trust in agents gradually decreases, which inhibits the growth of online shopping. Blockchain is seen as a solution to the trust crisis between agents and consumers. Our research is based on two competing agents selling the same type of goods on the same platform. We discuss agents’ blockchain technology application strategies in three scenarios, which are defined by whether agents choose to apply blockchain technology to improve consumer trust. The results show that the application of blockchain technology is beneficial to agents only when consumer trust is low. Furthermore, the YN strategy is regarded as a possible equilibrium strategy, which depends on the blockchain application cost and consumer trust. Some extended cases are discussed for post-blockchain consumer welfare, cost-sharing contracts, dishonesty penalties, and variable blockchain costs, and the results show that the analysis in this manuscript is robust. Our findings have important practical significance for promoting the application of blockchain technology and alleviating the problem of price information asymmetry in platform shopping. Frontiers Media S.A. 2022-10-14 /pmc/articles/PMC9615551/ /pubmed/36312067 http://dx.doi.org/10.3389/fpsyg.2022.984928 Text en Copyright © 2022 Wang, Xie and Chen. https://creativecommons.org/licenses/by/4.0/This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) and the copyright owner(s) are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
spellingShingle Psychology
Wang, Linfeng
Xie, Guo
Chen, Chen
Price competition and blockchain technology adoption strategies of agents on the digital platform
title Price competition and blockchain technology adoption strategies of agents on the digital platform
title_full Price competition and blockchain technology adoption strategies of agents on the digital platform
title_fullStr Price competition and blockchain technology adoption strategies of agents on the digital platform
title_full_unstemmed Price competition and blockchain technology adoption strategies of agents on the digital platform
title_short Price competition and blockchain technology adoption strategies of agents on the digital platform
title_sort price competition and blockchain technology adoption strategies of agents on the digital platform
topic Psychology
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9615551/
https://www.ncbi.nlm.nih.gov/pubmed/36312067
http://dx.doi.org/10.3389/fpsyg.2022.984928
work_keys_str_mv AT wanglinfeng pricecompetitionandblockchaintechnologyadoptionstrategiesofagentsonthedigitalplatform
AT xieguo pricecompetitionandblockchaintechnologyadoptionstrategiesofagentsonthedigitalplatform
AT chenchen pricecompetitionandblockchaintechnologyadoptionstrategiesofagentsonthedigitalplatform