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Evolutionary Game Analysis of Blockchain Technology Preventing Supply Chain Financial Risks

by 1,2, 1,2,* and 1,2
1
School of Economics and Management, China University of Geosciences, Beijing 100083, China
2
Key Laboratory of Carrying Capacity Assessment for Resource and Environment, Ministry of Natural Resources, Beijing 100083, China
*
Author to whom correspondence should be addressed.
Academic Editor: Jani Merikivi
J. Theor. Appl. Electron. Commer. Res. 2021, 16(7), 2824-2842; https://doi.org/10.3390/jtaer16070155
Received: 20 August 2021 / Revised: 30 September 2021 / Accepted: 15 October 2021 / Published: 21 October 2021
(This article belongs to the Special Issue Blockchain Commerce Ecosystem)
Because of the risks existing in supply chain finance, taking accounts receivable factoring business as the research object, this paper uses the evolutionary game method to analyzes the factors affecting the decision-making of the participants in supply chain finance, constructs an evolutionary game model between small and medium-sized enterprises and financial institutions, and analyzes the mechanism of blockchain to solve the financial risks of the supply chain by comparing the changes of evolutionary stability strategies before and after the introduction of blockchain technology. This paper aims to reduce financing risks by analyzing the mechanism of blockchain technology in supply chain finance. It is found that, firstly, blockchain technology can reduce the credit risk of financial institutions and solve financing problem. Credit risk plays a decisive role in whether financial institutions accept financing business decisions. Blockchain technology can reduce the operational risk of financial institutions and improve the business income of financial institutions. Secondly, the strict regulatory environment formed by blockchain technology makes the default behavior of small and medium-sized enterprises and core enterprises in a high-risk state at all times. No matter the profit distribution proportion that small and medium-sized enterprises can obtain through collusion, they will not choose to default, which effectively solves the paradox that small and medium-sized enterprises cannot obtain loans from financial institutions despite the increased probability of compliance. Then, the evolutionary game between financial institutions and small and medium-sized enterprises is balanced in that financial institutions accept business applications, small and medium-sized enterprises abide by the contract, and the convergence effect is better. Therefore, blockchain technology not only reduces the financing risk of financial institutions but also helps to solve the financing problems of small and medium-sized enterprises. View Full-Text
Keywords: blockchain; supply chain finance; account receivable factoring; evolutionary game blockchain; supply chain finance; account receivable factoring; evolutionary game
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MDPI and ACS Style

Sun, R.; He, D.; Su, H. Evolutionary Game Analysis of Blockchain Technology Preventing Supply Chain Financial Risks. J. Theor. Appl. Electron. Commer. Res. 2021, 16, 2824-2842. https://doi.org/10.3390/jtaer16070155

AMA Style

Sun R, He D, Su H. Evolutionary Game Analysis of Blockchain Technology Preventing Supply Chain Financial Risks. Journal of Theoretical and Applied Electronic Commerce Research. 2021; 16(7):2824-2842. https://doi.org/10.3390/jtaer16070155

Chicago/Turabian Style

Sun, Rui, Dayi He, and Huilin Su. 2021. "Evolutionary Game Analysis of Blockchain Technology Preventing Supply Chain Financial Risks" Journal of Theoretical and Applied Electronic Commerce Research 16, no. 7: 2824-2842. https://doi.org/10.3390/jtaer16070155

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