A Game Theoretic Model for Strategic Coopetition in Business Networks

TL;DR

This paper introduces a formal game theoretic model to analyze the complex interplay of cooperation and competition within business networks enabled by private blockchain technology.

Contribution

It provides the first integrated model to jointly analyze strategic coopetition behaviors and their incentives in business networks.

Findings

Demonstrates incentives for cooperative behavior in business networks.

Analyzes competitive strategies alongside cooperation.

Provides insights into value creation in blockchain-enabled networks.

Abstract

Private blockchain is driving the creation of business networks, resulting in the creation of new value or new business models to the enterprises participating in the network. Such business networks form when enterprises come together to derive value through a network which is greater than the value that can be derived solely by any single company. This results in a setting that combines both competitive and cooperative behavior, and which we call strategic coopetition. Traditionally, cooperative and competitive behavior have been analyzed separately in game theory. In this article, we provide a formal model enabling to jointly analyze these different types of behaviors and the interdependencies between them. Using this model, we formally demonstrate and analyze the incentives for both cooperative and competitive behavior.