Combating copycat using blockchain technology: A game-theoretic model

A copycat poses a serious challenge to brand-name companies by affecting the quality of productsand damaging brand-name companies’ reputation. This study examines the impact of blockchaintechnology on the performance of one brand-name company in a market with one copycat. Using a gametheoretic model, we analyze how key factors, including customer perception, product quality, andcompetition, affect profits and decisions (i.e., pricing and information-sharing level) of supply chainmembers. The results demonstrate that implementing blockchain technology can provide competitiveadvantages to the brand-name company by ensuring the authenticity and traceability of its product.Moreover, it can increase the profitability of the brand-name company. We further indicate that the levelof information sharing should be adjusted based on market conditions. Specifically, when the market ishighly competitive regarding pricing, increasing the level of information sharing is not suggested.Conversely, under intense competition on quality, the brand-name company can benefit from raising thelevel of information sharing.

Keywords:

Copycat , Blockchain technology , game theory , pricing.