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Traditional information structures within shipping supply chain platforms often grapple with inefficient decision-making processes, hindering overall efficiency. Blockchain is increasingly utilised in shipping platforms, employing decentralised distributed ledgers to transform the information architecture of supply chains, which are typically characterised by centralised management and fragmented data. However, the ceasing of operations such as TradeLens and 300cubits due to high operating costs, user privacy concerns, and multiple bets also makes investing in blockchain an obscure choice. Motivated by this dilemma about the value of blockchain to platforms, we investigate the impact of user behaviour on blockchain investments in shipping platforms through a game-theoretic model of heterogeneous platform competition. First, our results show that the relationship between the intrinsic value and the option value of blockchain is a crucial determinant of its applicability to platforms. Second, we establish that, although the network effects enhance platform profits, higher network effects exacerbate price competition and hinder the value of the blockchain. Moreover, multi-homing can weaken the strategic dependency between platforms and users, thereby reducing the profitability of platforms. Finally, it is observed that blockchain investment in shipping platforms brings more consumer surplus and social welfare, with moderate network effects and multi-homing behaviour.
Lü et al. (Wed,) studied this question.