Building trust in online trade-in programs with a blockchain-enabled system

【Author】 Chu, Xiang; Wang, Rui; Lin, Yan; Li, Yantong

【Source】TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW

【影响因子】10.047

【Abstract】Online trade-in programs provide efficient and convenient buyback services. However, they suffer from a trust deficit because of potential cheating by service providers (platforms). In this study, we design a blockchain-enabled system in which platforms tend to avoid cheating. The system employs an updated operation process to ensure reliable information inputs, a consortium blockchain network to avoid data tampering, and an intelligent algorithm embedded in a smart contract to automatically detect cheats. We then theoretically analyze the behavior of participants in the proposed system. In particular, we model the cheating decisions of a platform as chance-constrained programming and develop a Monte Carlo simulation method based on exploited optimality properties to solve it. Numerical experiments with real-world data demonstrate that the system reduces platforms' motivation to cheat to an acceptable level. We draw managerial and policy implications to improve system performance.

【Keywords】Closed-loop supply chain; Blockchain; Online trade-in; Trust; Cheat detection

【发表时间】2022 AUG

【收录时间】2022-08-15

【文献类型】理论模型

【主题类别】

区块链应用-实体经济-公共管理