Pricing in the video game supply chain under information asymmetry considering the impact of blockchain

The rapid growth and diversification of smart devices and gaming consoles have driven a significant global expansion of the video game industry, resulting in a dramatic rise in the number of players and the complexity of its supply chains. Within these digital supply chains, information asymmetry remains one of the most critical challenges for both game developers and platforms, affecting decisions on pricing, quality, and investment. Traditional wholesale contracts have often been employed, yet the increasing prevalence of agency pricing models has highlighted the need for more nuanced approaches. Emerging technologies, particularly blockchain, alongside platform-based business models, play a transformative role in enhancing transparency, reducing opportunistic behavior, and reshaping the economics of the industry.

This study investigates a digital game supply chain consisting of a developer and a platform, where decisions on price, game quality, and promotional effort are analyzed under asymmetric information. To capture the hierarchical nature of this interaction, we employ a Stackelberg game framework, designating the platform as the leader and the developer as the follower. The model is examined under two scenarios: the absence of blockchain and the presence of blockchain. By comparing these scenarios, the research evaluates how blockchain adoption influences decision-making, bargaining power, and overall supply chain performance.

Numerical analysis reveals that blockchain implementation reduces information asymmetry by enabling developers to access more accurate demand information. This transparency allows developers to set higher-quality standards and more informed prices, while platforms increase their promotional efforts. Consequently, blockchain adoption enhances the overall efficiency of the supply chain, improves end-user satisfaction, and strengthens the developer’s bargaining position, which in turn lowers the revenue-sharing rate demanded by the platform. The findings contribute to both theory and practice by integrating agency pricing, Stackelberg competition, and blockchain into a unified framework for video game supply chains. Beyond offering managerial insights for developers and platforms, the study emphasizes blockchain’s potential as a strategic tool for mitigating risks associated with information asymmetry and fostering sustainable growth in the digital gaming industry.