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

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.