Game-theoretic analysis of blockchain-enabled subcontracting model in construction projects

Blockchain-enabled subcontracting model has been developed to address the issue of bid shopping in construction projects. However, the impact of this blockchain application on the decision-making of project stakeholders and its economic outcomes has not been thoroughly examined. This study establish...

Full description

Saved in:
Bibliographic Details
Main Authors: Jong Han Yoon, Pardis Pishdad
Format: Article
Language:English
Published: ELS Publishing (ELSP) 2024-12-01
Series:Blockchain
Subjects:
Online Access:https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2024/Blockchain20240009.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849338797690454016
author Jong Han Yoon
Pardis Pishdad
author_facet Jong Han Yoon
Pardis Pishdad
author_sort Jong Han Yoon
collection DOAJ
description Blockchain-enabled subcontracting model has been developed to address the issue of bid shopping in construction projects. However, the impact of this blockchain application on the decision-making of project stakeholders and its economic outcomes has not been thoroughly examined. This study establishes a game-theoretic framework to evaluate the economic implications of stakeholders' behaviors in the construction project subcontracting process. Utilizing this framework, the study investigates how the blockchain-enabled subcontracting model influences stakeholders’ decision-making and economic outcomes when compared to the traditional subcontracting model. The findings of this examination indicate that the blockchain application can effectively reduce opportunistic behaviors, leading to mutually beneficial outcomes for the stakeholders. This outcome contributes to the existing knowledge by 1) elucidating the practical implications of blockchain-based subcontracting models in the construction industry, bridging the gap between new technological applications and industry practices, and 2) illustrating that blockchain technology promotes ethical decision-making among General Contractors (GC) and Subcontractors (Subs) during the subcontracting process, ultimately improving quality and profitability by reducing the risks of claims and disputes.
format Article
id doaj-art-a6f52e9870e746b8ba7cef7bc62e4521
institution Kabale University
issn 2959-1260
2958-8138
language English
publishDate 2024-12-01
publisher ELS Publishing (ELSP)
record_format Article
series Blockchain
spelling doaj-art-a6f52e9870e746b8ba7cef7bc62e45212025-08-20T03:44:18ZengELS Publishing (ELSP)Blockchain2959-12602958-81382024-12-012210.55092/blockchain202400091833519549603041280Game-theoretic analysis of blockchain-enabled subcontracting model in construction projectsJong Han Yoon0Pardis Pishdad1Nieri Department of Construction, Development and Planning, College of Art, Architecture and Construction, Clemson University, Clemson, SC, USASchool of Building Construction, College of Design, Georgia Institute of Technology, Atlanta, GA, USABlockchain-enabled subcontracting model has been developed to address the issue of bid shopping in construction projects. However, the impact of this blockchain application on the decision-making of project stakeholders and its economic outcomes has not been thoroughly examined. This study establishes a game-theoretic framework to evaluate the economic implications of stakeholders' behaviors in the construction project subcontracting process. Utilizing this framework, the study investigates how the blockchain-enabled subcontracting model influences stakeholders’ decision-making and economic outcomes when compared to the traditional subcontracting model. The findings of this examination indicate that the blockchain application can effectively reduce opportunistic behaviors, leading to mutually beneficial outcomes for the stakeholders. This outcome contributes to the existing knowledge by 1) elucidating the practical implications of blockchain-based subcontracting models in the construction industry, bridging the gap between new technological applications and industry practices, and 2) illustrating that blockchain technology promotes ethical decision-making among General Contractors (GC) and Subcontractors (Subs) during the subcontracting process, ultimately improving quality and profitability by reducing the risks of claims and disputes.https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2024/Blockchain20240009.pdfblockchainbid shoppingconstructiongame theorysmart contractsubcontracting
spellingShingle Jong Han Yoon
Pardis Pishdad
Game-theoretic analysis of blockchain-enabled subcontracting model in construction projects
Blockchain
blockchain
bid shopping
construction
game theory
smart contract
subcontracting
title Game-theoretic analysis of blockchain-enabled subcontracting model in construction projects
title_full Game-theoretic analysis of blockchain-enabled subcontracting model in construction projects
title_fullStr Game-theoretic analysis of blockchain-enabled subcontracting model in construction projects
title_full_unstemmed Game-theoretic analysis of blockchain-enabled subcontracting model in construction projects
title_short Game-theoretic analysis of blockchain-enabled subcontracting model in construction projects
title_sort game theoretic analysis of blockchain enabled subcontracting model in construction projects
topic blockchain
bid shopping
construction
game theory
smart contract
subcontracting
url https://elsp-homepage.oss-cn-hongkong.aliyuncs.compaper/journal/open/BC/2024/Blockchain20240009.pdf
work_keys_str_mv AT jonghanyoon gametheoreticanalysisofblockchainenabledsubcontractingmodelinconstructionprojects
AT pardispishdad gametheoreticanalysisofblockchainenabledsubcontractingmodelinconstructionprojects