We construct an economic framework for understanding the incentives of the participants of a permissioned blockchain for supply chains and other related industries. Our study aims to determine whether adoption of blockchain is socially beneficial and whether such adoption arises in equilibrium....

We model a supply chain with a single risk-averse manufacturer who purchases from vendors and sells to consumers. We find that blockchain adoption always enhances manufacturer welfare in this setting when adoption costs are zero; as a consequence, the manufacturer always adopts blockchain for...