How to empower commercial satellite supply chain: Insurance, government subsidy or blockchain adoption?

Jichang Dong, Yihan Jing, Zhou He and Ciwei Dong

Omega, 2024, vol. 127, issue C

Abstract: The rapid growth of the commercial satellite industry is hindered by its vulnerability to launch failures, demanding the adoption of effective risk mitigation strategies. This research investigates such strategies, including the adoption of launch insurance, government subsidies, and blockchain technology integration within satellite launch supply chains. Utilizing Stackelberg games, we model scenarios with launch insurance (Model I), insurance plus government subsidies (Model IG), blockchain-embedded insurance (Model B), and blockchain-embedded insurance with government subsidies (Model BG), to investigate optimal launch and retail pricing strategies and to enhance launch success probabilities. Our findings demonstrate that government-subsidized launch insurance can create a win-win scenario, while the incorporation of blockchain technology fosters an all-win situation, benefiting all stakeholders, including consumers. Notably, the study reveals a synergistic relationship between government subsidies and blockchain technology, significantly enhancing supply chain efficiency and leading to positive spillover effects on profits and social welfare. This research contributes significantly to the understanding of managerial implications of these strategies within the commercial space launch market.

Keywords: Satellite launch; Insurance; Government subsidy; Blockchain; Commercial space supply chain (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305048324000501
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:127:y:2024:i:c:s0305048324000501

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.omega.2024.103083

Access Statistics for this article

Omega is currently edited by B. Lev

More articles in Omega from Elsevier
Bibliographic data for series maintained by Catherine Liu ().