Research on World Agricultural Economy

Blockchain in the Agri-Food Supply Chain: A Game-Theoretical Approach for a Strategic Solution to Information Asymmetry

Federico Modica

Department of Agricultural, Food and Forestry Sciences, University of Palermo, 90133 Palermo, Italy

Filippo Sgroi

Department of Economics, Business and Statistics, University of Palermo, 90133 Palermo, Italy

Caterina Sciortino

Department of Economics, Business and Statistics, University of Palermo, 90133 Palermo, Italy

DOI: https://doi.org/10.36956/rwae.v7i1.2212

Received: 26 May 2025 | Revised: 7 August 2025 | Accepted: 25 August 2025 | Published Online: 22 December 2025

---

Abstract

The increasing complexity of global agri-food supply chains has exacerbated the issue of information asymmetry, undermining trust among stakeholders and compromising transparency in production processes. In such a fragmented and opaque ecosystem, the ability to access reliable, verifiable information becomes not just a competitive advantage but a necessity for the sustainability, accountability, and resilience of the entire agri-food supply chain. This study explores the potential of blockchain technology as a strategic tool to mitigate such asymmetries by developing a formal model grounded in evolutionary game theory. The model simulates the strategic interactions between supply chain actors, specifically, the choice to cooperate by sharing truthful information or to defect by concealing or falsifying it, within a blockchain-enabled environment. By employing a two-strategy replicator dynamic, the research identifies the conditions under which cooperation becomes an evolutionarily stable strategy. The findings suggest that the introduction of blockchain, combined with targeted incentives and credible penalties, significantly increases the likelihood of cooperative behavior. Simulations reveal that the implementation of blockchain, when combined with appropriate incentive and penalty mechanisms, significantly reduces tendencies toward data concealment or falsification. The findings also highlight the pivotal role of blockchain in fostering inter-organizational trust, enhancing traceability, and promoting sustainable practices throughout the value chain. The paper concludes with practical implications and policy recommendations aimed at supporting the digital transition and strengthening the resilience of the agri-food sector.

Keywords: Blockchain; Agri‑Food Supply Chain; Information Asymmetry; Game Theory; Traceability; Transparency

---

References

[1] Barrett, C., Reardon, T., Swinnen, J., et al., 2019. Structural Transformation and Economic Development: Insights From the Agri-Food Value Chain Revolution. Available from: https://barrett.dyson.cornell.edu/files/papers/BRSZ%2013%20Aug%202019.pdf (cited 15 March 2025).

[2] Krstić, M., Agnusdei, G.P., Tadić, S., et al., 2023. Prioritization of E-Traceability Drivers in the Agri-Food Supply Chains. Agricultural and Food Economics. 11, 42. DOI: https://doi.org/10.1186/s40100-023-00284-5

[3] Oluwafemi, R.A., 2024. Dimensions and Characteristics of Food and Agribusiness Markets. In: Raimi, L., Olatidoye, O.P., Said, T.F. (eds.). Agripreneurship and the Dynamic Agribusiness Value Chain. Springer Nature: Singapore. pp. 181–202. DOI: https://doi.org/10.1007/978-981-97-7429-6_11

[4] Barrett, C.B., Reardon, T., Swinnen, J., et al., 2022. Agri-Food Value Chain Revolutions in Low- and Middle-Income Countries. Journal of Economic Literature. 60(4), 1316–1377. DOI: https://doi.org/10.1257/jel.20201539

[5] Haessner, P., Haessner, J., McMurtrey, M., 2024. Trends and Challenges in the Food Supply Chain. Journal of Strategic Innovation and Sustainability. 19(1), 115–124.

[6] Silkoset, R., Nygaard, A., 2025. Leveraging Blockchain and Smart Contracts to Combat Greenwashing in Sustainable Development. Sustainable Development. 33(4), 5874–5889. DOI: https://doi.org/10.1002/sd.3431

[7] Bahn, R.A., Yehya, A.A.K., Zurayk, R., 2021. Digitalization for Sustainable Agri-Food Systems: Potential, Status, and Risks for the MENA Region. Sustainability. 13(6), 3223. DOI: https://doi.org/10.3390/su13063223

[8] Bosona, T., Gebresenbet, G., 2023. The Role of Blockchain Technology in Promoting Traceability Systems in Agri-Food Production and Supply Chains. Sensors. 23(11), 5342. DOI: https://doi.org/10.3390/s23115342

[9] Yogarajan, L., Masukujjaman, M., Ali, M.H., et al., 2023. Exploring the Hype of Blockchain Adoption in Agri-Food Supply Chain: A Systematic Literature Review. Agriculture. 13(6), 1173. DOI: https://doi.org/10.3390/agriculture13061173

[10] Vern, P., Panghal, A., Mor, R.S., et al., 2025. Unlocking the Potential: Leveraging Blockchain Technology for Agri-Food Supply Chain Performance and Sustainability. The International Journal of Logistics Management. 36(2), 474–500. DOI: https://doi.org/10.1108/IJLM-09-2023-0364

[11] Brandín, R., Abrishami, S., 2021. Information Traceability Platforms for Asset Data Lifecycle: Blockchain-Based Technologies. Smart and Sustainable Built Environment. 10(3), 364–386. DOI: https://doi.org/10.1108/SASBE-03-2021-0042

[12] Aggarwal, M., Rani, P., Rani, P., et al., 2024. Revolutionizing Agri-Food Supply Chain Management With Blockchain-Based Traceability and Navigation Integration. Cluster Computing. 27, 12919–12942. DOI: https://doi.org/10.1007/s10586-024-04609-x

[13] Marchese, A., Tomarchio, O., 2022. A Blockchain-Based System for Agri-Food Supply Chain Traceability Management. SN Computer Science. 3, 279. DOI: https://doi.org/10.1007/s42979-022-01148-3

[14] Yang, W., Xie, C., Ma, L., 2023. Does Blockchain-Based Agri-Food Supply Chain Guarantee the Initial Information Authenticity? An Evolutionary Game Perspective. PLoS One. 18(6), e0286886. DOI: https://doi.org/10.1371/journal.pone.0286886

[15] Zhu, P., Hu, J., Li, X., et al., 2021. Using Blockchain Technology to Enhance the Traceability of Original Achievements. IEEE Transactions on Engineering Management. 70(5), 1693–1707. DOI: https://doi.org/10.1109/TEM.2021.3066090

[16] Allen, T., Prosperi, P., 2016. Modeling Sustainable Food Systems. Environmental Management. 57(5), 956–975. DOI: https://doi.org/10.1007/s00267-016-0664-8

[17] Zheng, Y., Xu, Y., Qiu, Z., 2023. Blockchain Traceability Adoption in Agricultural Supply Chain Coordination: An Evolutionary Game Analysis. Agriculture. 13(1), 184. DOI: https://doi.org/10.3390/agriculture13010184

[18] Saurabh, S., Dey, K., 2021. Blockchain Technology Adoption, Architecture, and Sustainable Agri-Food Supply Chains. Journal of Cleaner Production. 284, 124731. DOI: https://doi.org/10.1016/j.jclepro.2020.124731

[19] Rana, R.L., Tricase, C., De Cesare, L., 2021. Blockchain Technology for a Sustainable Agri-Food Supply Chain. British Food Journal. 123(11), 3471–3485. DOI: https://doi.org/10.1108/BFJ-09-2020-0832

[20] Niknejad, N., Ismail, W., Bahari, M., et al., 2021. Mapping the Research Trends on Blockchain Technology in Food and Agriculture Industry: A Bibliometric Analysis. Environmental Technology & Innovation. 21, 101272. DOI: https://doi.org/10.1016/j.eti.2020.101272

[21] Ajayi, O.O., Toromade, A.S., Olagoke, A., 2024. Agro-Blockchain Markets (ABM): A Secure and Transparent Model for Smallholder Farmers. Agricultural Innovations Review. 21(2), 15–24. DOI: https://doi.org/10.30574/gscarr.2024.21.2.0405

[22] Pakseresht, A., Kaliji, S.A., Hakelius, K., 2024. Blockchain Technology Characteristics Essential for the Agri-Food Sector: A Systematic Review. Food Control. 165, 110661. DOI: https://doi.org/10.1016/j.foodcont.2024.110661

[23] Gaudio, M.T., Chakraborty, S., Curcio, S., 2024. Performance Analysis of a Blockchain for a Traceability System Based on the IoT Sensor Units Along the Agri-Food Supply Chain. In: Savaglio, C., Fortino, G., Zhou, M., et al. (eds.). Device-Edge-Cloud Continuum: Paradigms, Architectures and Applications. Springer Nature: Cham, Switzerland. pp. 35–47. DOI: https://doi.org/10.1007/978-3-031-42194-5_3

[24] Bai, Y., Wu, H., Huang, M., et al., 2023. How to Build a Cold Chain Supply Chain System for Fresh Agricultural Products Through Blockchain Technology—A Study of Tripartite Evolutionary Game Theory Based on Prospect Theory. PLoS One. 18(11), e0294520. DOI: https://doi.org/10.1371/journal.pone.0294520

[25] Zhao, H., Yang, J., 2024. Evolutionary Game Analysis of Stakeholders’ Decision-Making Behavior in Agricultural Data Supply Chain. Frontiers in Physics. 11, 1321973. DOI: https://doi.org/10.3389/fphy.2023.1321973

[26] Rzeczycki, A., 2022. Supply Chain Decision Making With Use of Game Theory. Procedia Computer Science. 207, 3988–3997. DOI: https://doi.org/10.1016/j.procs.2022.09.461

[27] Vasnani, N.N., Chua, F.L.S., Ocampo, L.A., et al., 2019. Game Theory in Supply Chain Management: Current Trends and Applications. International Journal of Applied Decision Sciences. 12(1), 56–97. DOI: https://doi.org/10.1504/IJADS.2019.096552

[28] Chavoshlou, A.S., Khamseh, A.A., Naderi, B., 2018. An Optimization Model of Three-Player Payoff Based on Fuzzy Game Theory in Green Supply Chain. Computers & Industrial Engineering. 128, 782–794. DOI: https://doi.org/10.1016/j.cie.2018.12.057

[29] Asrol, M., Marimin, M., Machfud, M., et al., 2020. Supply Chain Fair Profit Allocation Based on Risk and Value Added for Sugarcane Agro-Industry. Operations and Supply Chain Management. 13(2), 150–165. DOI: http://doi.org/10.31387/oscm0410259

[30] Fink, M., Maresch, D., Lang, R., et al., 2024. How Production Cooperatives Operating a Sharing Economy Business Model Innovate in Rural Places. R&D Management. 54(5), 1213–1233. DOI: https://doi.org/10.1111/radm.12679

[31] Song, C., Zhuang, J., 2017. Modeling a Government–Manufacturer–Farmer Game for Food Supply Chain Risk Management. Food Control. 78, 443–455. DOI: https://doi.org/10.1016/j.foodcont.2017.02.047

[32] Li, Y., Mao, M., Wang, K., 2010. The Decision-Making of Constructing Traceability System for Fresh Agricultural Products. In Proceedings of the 2010 International Conference of Logistics Engineering and Management, Chengdu, China, 8–10 October 2010; pp. 726–733.

[33] Oltra-Mestre, M.J., Hargaden, V., Coughlan, P., et al., 2021. Innovation in the Agri-Food Sector: Exploiting Opportunities for Industry 4.0. Creativity and Innovation Management. 30(1), 198–210. DOI: https://doi.org/10.1111/caim.12418

[34] Yu, B., Zhan, P., Lei, M., et al., 2020. Food Quality Monitoring System Based on Smart Contracts and Evaluation Models. IEEE Access. 8, 12479–12490. DOI: https://doi.org/10.1109/ACCESS.2020.2966020

[35] Essien, A., Chukwukelu, G.O., Kazantsev, N., et al., 2024. Unveiling the Factors Influencing Transparency and Traceability in Agri-Food Supply Chains: An Interconnected Framework. Supply Chain Management: An International Journal. 29(3), 602–619. DOI: https://doi.org/10.1108/SCM-02-2023-0083

[36] Thompson, B.S., Rust, S., 2023. Blocking Blockchain: Examining the Social, Cultural, and Institutional Factors Causing Innovation Resistance to Digital Technology in Seafood Supply Chains. Technology in Society. 73, 102235. DOI: https://doi.org/10.1016/j.techsoc.2023.102235

[37] Salzano, F., Marchesi, L., Pareschi, R., et al., 2024. Integrating Blockchain Technology Within an Information Ecosystem. Blockchain: Research and Applications. 5(4), 100225. DOI: https://doi.org/10.1016/j.bcra.2024.100225

[38] Bruschi, F., Perego, A., Portale, V., n.d. Blockchain & Distributed Ledger. Available from: https://www.som.polimi.it/en/research/research-lines/blockchain-distributed-ledger/ (cited 15 March 2025). (in Italian)

[39] European Commission, 2022. State of the Union 2025. Available from: https://ec.europa.eu (cited 15 March 2025).

[40] European Union, 2025. Blockchain and Traceability in Relation to Food Supply Chain Integrity (TRUST-FOOD). Available from: https://digital-skills-jobs.europa.eu/en/opportunities/training/blockchain-and-traceability-relation-food-supply-chain-integrity-trust-food (cited 15 March 2025). (in Italian)

[41] Foodchain, n.d. The Transparent Food Supply Chain: Blockchain for the Traceability of Your Products from Origin to Final Consumer. Available from: https://food-chain.it/ (cited 15 March 2025).

[42] Tripoli, M., Schmidhuber, J., 2018. Emerging Opportunities for the Application of Blockchain in the Agri-Food Industry. Food and Agriculture Organization of the United Nations and International Centre for Trade and Sustainable Development (ICTSD): Geneva, Switzerland.

[43] Zhong, J., Cheng, H., Jia, F., 2024. Supply Chain Resilience Capability Factors in Agri-Food Supply Chains. Operations Management Research. 17, 850–861. DOI: https://doi.org/10.1007/s12063-024-00470-8

[44] Coase, R.H., 1993. The Nature of the Firm (1937). In: Williamson, O.E., Winter, S.G. (eds.). The Nature of the Firm: Origins, Evolution, and Development. Oxford University Press: New York, NY, USA. pp. 18–33.

[45] Williamson, O.E., 1985. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. In: Boersch, C., Elschen, R. (eds.). The Summa Summarum of Management: The 25 Most Important Works for Strategy, Leadership and Change. Gabler Publishing House: Wiesbaden, Germany. pp. 61–75. DOI: https://doi.org/10.1007/978-3-8349-9320-5_6 (in German)

[46] Ciliberti, S., Frascarelli, A., Martino, G., 2020. Drivers of Participation in Collective Arrangements in the Agri-Food Supply Chain: Evidence From Italy Using a Transaction Costs Economics Perspective. Annals of Public and Cooperative Economics. 91(3), 387–409. DOI: https://doi.org/10.1111/apce.12263

[47] Shaffer, J.D., 1987. Thinking About Farmers’ Cooperatives, Contracts, and Economic Coordination. Cooperative Theory: New Approaches, ACS Service Report. 18, 61–86.

[48] Goldberg, L.R., 2013. Thinking, Fast and Slow, by D. Kahneman. Quantitative Finance. 13(2), 177–179. DOI: https://doi.org/10.1080/14697688.2012.710501

[49] Fehr, E., Falk, A., 2002. Psychological Foundations of Incentives. European Economic Review. 46(4–5), 687–724. DOI: https://doi.org/10.1016/S0014-2921(01)00208-2

[50] Peloza, J., Falkenberg, L., 2009. The Role of Collaboration in Achieving Corporate Social Responsibility Objectives. California Management Review. 51(3), 95–113. DOI: https://doi.org/10.2307/41166495

[51] Venturini, L., King, R.P., 2002. Vertical Coordination and the Design Process for Supply Chains to Ensure Food Quality. In: Canavari, M., Caggiati, P., Easter, K.W. (eds.). Economic Studies on Food, Agriculture, and the Environment. Springer: New York, NY, USA. pp. 57–87. DOI: https://doi.org/10.1007/978-1-4615-0609-6_5

[52] Berti, G., Mulligan, C., 2016. Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems. Sustainability. 8(7), 616. DOI: https://doi.org/10.3390/su8070616

[53] Meissner, D., 2019. Public–Private Partnership Models for Science, Technology, and Innovation Cooperation. Journal of the Knowledge Economy. 10, 1341–1361. DOI: https://doi.org/10.1007/s13132-015-0310-3

[54] North, D.C., 1990. Institutions, Institutional Change and Economic Performance. Cambridge University Press: Cambridge, UK.

[55] Meng, R., Fan, D., Xu, X., 2025. Incentive Mechanisms for Information Collaboration in Agri-Food Supply Chains: An Evolutionary Game and System Dynamics Approach. Systems. 13(5), 318. DOI: https://doi.org/10.3390/systems13050318

[56] Leogrande, A., 2024. Integrating ESG Principles into Smart Logistics: Toward Sustainable Supply Chains. SSRN preprint. ssrn.5022211. DOI: http://dx.doi.org/10.2139/ssrn.5022211

[57] Casati, M., Soregaroli, C., Frizzi, G.L., et al., 2024. Impacts of Blockchain Technology in Agrifood: Exploring the Interplay Between Transactions and Firms’ Strategic Resources. Supply Chain Management: An International Journal. 29(7), 51–70. DOI: https://doi.org/10.1108/SCM-09-2023-0443