A Game Theoretic Model for Strategic Coopetition in Business Networks
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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.
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