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Supply chain equilibrium on a game theory-incentivized blockchain network
Journal of Industrial Information Integration ( IF 15.7 ) Pub Date : 2021-12-05 , DOI: 10.1016/j.jii.2021.100288
Jianbin Gao 1 , Bonsu Adjei-Arthur 1 , Emmanuel Boateng Sifah 1 , Hu Xia 1 , Qi Xia 1
Affiliation  

In the supply chain ecosystem, trust among transacting parties is a critical component to ensure profitability. However, participating parties act selfishly in their interest resulting in a sub-optimal output for transactions. This makes it difficult for trust to be established and an effective equilibrium to be reached among parties. Therefore, it is essential to ensure coordination among all parties and for all parties to collaborate effectively to avoid this problem. This helps to create a favourable environment and ensures profitability on the supply chain. Previous works have attempted to achieve this by making use of contracting mechanisms to regulate IoT devices and nodes on the network. In these systems, parties are enticed to act in a way so that profit achieved in the supply chain is maximized. However, these contracting mechanisms utilized are centralized and can easily be compromised. Also, these contracts are not enforced by a framework that ensures the effective establishment of trust among parties on the supply chain. Also, equilibrium remains in-established due to the complexity and lack of an effective system to regulate behaviour effectively. In this work, we design a blockchain-adaptive framework that incentivizes participants to work together on the supply chain to establish an equilibrium. We show through a proof of Concept, that the blockchain possesses the necessary attributes needed in establishing a Nash Equilibrium and can be used to coordinate the supply chain in complex scenarios to ensure security, trust, and profit. Using game theory models, we develop novel approaches and prove mathematically that the blockchain is more efficient in establishing a supply chain equilibrium among parties, ensuring fairness among various parties. Additionally, we utilize smart contracts to calculate each participating party’s expected payoff and profit. We also attempt to reduce the level of uncertainties across the supply chain by presenting profit-maximizing parties. Here the transparency provided by the blockchain provides a means to collate information relevant for making effective decisions on the blockchain which proves relevant in multi-complex supply chain networks such as aircraft, and vehicle manufacturing and assembling networks. Here, parties are thus incentivized to make the right decisions. We observe through our test that the blockchain provides all parties with the best payoff that satisfies all parties by incorporating each individual’s decisions on the supply chain, ensuring trust and equilibrium are established. The implementation of our work was achieved using standard blockchain networks. Our results show the cost-efficiency and feasibility of our proposed idea.



中文翻译:

博弈论激励的区块链网络上的供应链均衡

在供应链生态系统中,交易方之间的信任是确保盈利的关键组成部分。然而,参与方为了自己的利益而自私地行事,导致交易的输出不是最优的。这使得在各方之间建立信任和达成有效平衡变得困难。因此,必须确保各方之间的协调以及各方有效协作以避免此问题。这有助于创造有利的环境并确保供应链的盈利能力。以前的工作试图通过利用合同机制来规范网络上的物联网设备和节点来实现这一点。在这些系统中,各方被诱使以某种方式行事,从而使供应链中实现的利润最大化。然而,这些使用的合同机制是集中的,很容易被破坏。此外,这些合同并没有通过确保供应链各方之间有效建立信任的框架来执行。此外,由于复杂性和缺乏有效调节行为的有效系统,平衡仍然存在。在这项工作中,我们设计了一个区块链自适应框架,激励参与者在供应链上共同努力以建立平衡。我们通过概念证明表明,由于复杂性和缺乏有效规范行为的有效系统,平衡仍未建立。在这项工作中,我们设计了一个区块链自适应框架,激励参与者在供应链上共同努力以建立平衡。我们通过概念证明表明,由于复杂性和缺乏有效规范行为的有效系统,平衡仍未建立。在这项工作中,我们设计了一个区块链自适应框架,激励参与者在供应链上共同努力以建立平衡。我们通过概念证明表明,区块链拥有建立区块链所需的必要属性纳什均衡,可用于协调复杂场景下的供应链,以确保安全、信任和利润。使用博弈论模型,我们开发了新颖的方法并在数学上证明了区块链在建立各方之间的供应链平衡方面更有效,确保各方之间的公平。此外,我们利用智能合约来计算每个参与方的预期收益和利润。我们还试图通过展示利润最大化的各方来降低整个供应链的不确定性水平。在这里,区块链提供的透明度提供了一种方法来整理相关信息,以便在区块链上做出有效决策,这在飞机、车辆制造和组装网络等多复杂供应链网络中证明是相关的。这里,从而激励各方做出正确的决定。我们通过测试观察到,区块链通过将每个人的决策纳入供应链,确保建立信任和平衡,为各方提供了满足各方的最佳回报。我们工作的实施是使用标准区块链网络实现的。我们的结果显示了我们提出的想法的成本效益和可行性。

更新日期:2021-12-20
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