Differential Game Analysis of Cross-Border E-Commerce Supply Chains Under Dual Trade Barriers

This study examines a two-echelon cross-border e-commerce (CBEC) supply chain under the joint constraints of technical barriers to trade (TBTs) and tariffs. To capture the cumulative nature of foreign-market access, the degree of trade barrier breakthrough is modeled as a continuous-time state that converts technological innovation and compliance updating into sustained market access. A differential game is developed to compare centralized, decentralized, and modified two-part tariff contract decisions. The main conclusions are as follows: (1) Decentralized decision-making causes insufficient technological innovation and compliance updating, reducing the steady-state breakthrough level and total supply chain profit. (2) The modified two-part tariff contract internalizes the benefit–cost mismatch between the manufacturer and the retailer, reproducing the centralized investment path and total profit. (3) Government support strengthens barrier-breaking incentives, while the effect of tariffs on decentralized investment depends on the balance between subsidy support and upstream tariff pass-through; tariffs nevertheless reduce the integrated channel margin and may invalidate the contract beyond a critical threshold. (4) Product-life-cycle analysis shows that technological innovation dominates during technology dividend periods, while compliance updating becomes more valuable during bottleneck periods. (5) Multi-scenario simulations and ±20% one-factor perturbations preserve the ranking C = MT > D. These findings extend dynamic supply chain coordination research by linking investment, realized market access, and contract incentives under dual trade barriers, and provide implications for the long-term economic sustainability of CBEC supply chains.

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Publication Details

Journal
Sustainability
Published
2026-08-27
DOI
https://doi.org/10.3390/su18178794
Primary Topic
E-commerce and Technology Innovations
Type
article
Field-Weighted Citation Impact
0.00

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article

Differential Game Analysis of Cross-Border E-Commerce Supply Chains Under Dual Trade Barriers

Xiaoqing Huang, Haiping Ren, Xuan Li, Lijun Wu
Sustainability
E-commerce and Technology Innovations
article

Differential Game Analysis of Cross-Border E-Commerce Supply Chains Under Dual Trade Barriers

Xiaoqing Huang, Haiping Ren, Xuan Li, Lijun Wu
article en

Abstract

This study examines a two-echelon cross-border e-commerce (CBEC) supply chain under the joint constraints of technical barriers to trade (TBTs) and tariffs. To capture the cumulative nature of foreign-market access, the degree of trade barrier breakthrough is modeled as a continuous-time state that converts technological innovation and compliance updating into sustained market access. A differential game is developed to compare centralized, decentralized, and modified two-part tariff contract decisions. The main conclusions are as follows: (1) Decentralized decision-making causes insufficient technological innovation and compliance updating, reducing the steady-state breakthrough level and total supply chain profit. (2) The modified two-part tariff contract internalizes the benefit–cost mismatch between the manufacturer and the retailer, reproducing the centralized investment path and total profit. (3) Government support strengthens barrier-breaking incentives, while the effect of tariffs on decentralized investment depends on the balance between subsidy support and upstream tariff pass-through; tariffs nevertheless reduce the integrated channel margin and may invalidate the contract beyond a critical threshold. (4) Product-life-cycle analysis shows that technological innovation dominates during technology dividend periods, while compliance updating becomes more valuable during bottleneck periods. (5) Multi-scenario simulations and ±20% one-factor perturbations preserve the ranking C = MT > D. These findings extend dynamic supply chain coordination research by linking investment, realized market access, and contract incentives under dual trade barriers, and provide implications for the long-term economic sustainability of CBEC supply chains.

SustainabilityVol. 18(17)
Jiangxi University of Technology (CN), Jiangxi University of Science and Technology (CN)
Jiangxi University of Science and Technology, China Association of Higher Education
Industry, innovation and infrastructure
Openalex Percentile: Top 6%
E-commerce and Technology Innovations
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