Analysis of Price Dynamic Competition and Stability in Cross-Border E-Commerce Supply Chain Channels Empowered by Blockchain Technology

TL;DR

This paper studies how blockchain affects price competition and stability in cross-border e-commerce supply chains using dynamic models and simulations.

Contribution

The study introduces a discrete dynamic model of price competition in cross-border e-commerce under blockchain deployment modes.

Findings

Blockchain deployment can reduce dynamic stability in cross-border e-commerce pricing.

Dual-channel deployment improves strategic coordination compared to single-channel deployment.

Moderate noise can stabilize systems, while excessive disturbances may cause divergence.

Abstract

Based on the perspective of multi-stage dynamic competition, this study constructs a discrete dynamic model of price competition between the “direct sales” and “resale” channels in cross-border e-commerce (CBEC) under three blockchain deployment modes. Drawing on nonlinear dynamics theory, the Nash equilibrium of the system and its stability conditions are examined. Using numerical simulations, the effects of factors such as the channel price adjustment speed, tariff rate, and commission ratio on the dynamic evolution, entropy, and stability of the system under the empowerment of blockchain technology are investigated. Furthermore, the impact of noise factors on system stability and the corresponding chaos control strategies are further analyzed. This study finds that a single-channel deployment tends to induce asymmetric system responses, whereas dual-channel collaborative deployment helps enhance strategic coordination. An increase in price adjustment speed, tariffs, and commission rates can drive the system’s pricing dynamics from a stable state into chaos, thereby raising its entropy, while the adoption of blockchain technology tends to weaken dynamic stability. Therefore, after deploying blockchain technology, each channel should make its pricing decisions more cautiously. Moderate noise can exert a stabilizing effect, whereas excessive disturbances may cause the system to diverge. Hence, enterprises should carefully assess the magnitude of disturbances and capitalize on the positive effects brought about by moderate fluctuations. In addition, the delayed feedback control method can effectively suppress chaotic fluctuations and enhance system stability, demonstrating strong adaptability across different blockchain deployment modes.

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