Combating Copycat using blockchain technology: A game-theoretic model

A copycat poses a serious challenge to brand-name companies by affecting the quality of products and damaging brand-name companies’ reputation. This study examines the impact of blockchain technology on the performance of one brand-name company in a market with one copycat. Using a game theoretic model, we analyze how key factors, including customer perception, product quality, and competition, affect profits and decisions (i.e., pricing and information-sharing level) of supply chain members. The results demonstrate that implementing blockchain technology can provide competitive advantages 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 level of information sharing should be adjusted based on market conditions. Specifically, when the market is highly 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 the level of information sharing.