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

Abstract

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.

Enhancing AIKU Adoption: Insights from the Role of Habit in Behavior Intention

“…These financial dimensions and pricing structures can have a significant impact on technology adoption among consumers [70]. In contrast, in the field of marketing research, the perceived value of a product or service is usually determined by its price, in addition to the quality of the product or service [16]. The favorable price-value effect becomes apparent when individuals believe that the benefits of using the technology outweigh the associated financial costs [71].…”

“…In the midst of rapid digital transformation, the integration of technology into education is becoming increasingly important. One area that is attracting attention is the use of artificial intelligence (AI)-based air quality systems in educational settings [16]. The use of AI technology in air quality systems promises to make a positive contribution to the health and productivity of students and teaching staff [17], [18].…”