Chair of Production Management

Blockchain-enabled order history sharing and the Bullwhip Effect

Presentation by Kai Wendt, Daniel Hellwig, Volodymyr Babich and Arnd Huchzermeier at MSOM conference 2022 in Munich

Title: Behavioral simulation of blockchain-enabled order history sharing and the Bullwhip Effect

Authors: Kai Wendt, Daniel Hellwig, Professor Volodymyr Babich (Georgetown University, McDonough School of Business) and Prof. Dr. Arnd Huchzermeier

Abstract: Using a behavioral game of supply rationing, we investigate the consequences of sharing information about competing retailers’ historical orders on the Bullwhip Effect. We find that decision-makers act more strategically and closer to Nash equilibrium predictions if information about competitors’ historical orders is shared; however, sharing the entire order history does not accelerate the convergence to theoretical Nash equilibrium as much as sharing orders from the last period only.

Link to conference