Strategic interactions in digital transformation: a game-theoretic approach to decision-making and collaboration

Abstract

Digital transformation (DT) is reshaping industries by integrating advanced technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT). However, the decision-making processes among stakeholders—firms, consumers, and regulators—are often marked by strategic conflicts and cooperation dilemmas. This paper employs game theory to model and analyze these interactions, providing a framework for understanding competitive and collaborative behaviors in DT. We examine key applications, including technology adoption, cybersecurity, and platform competition, where Nash equilibria and cooperative game solutions offer insights into optimal strategies. Our findings suggest that game-theoretic models can enhance efficiency, fairness, and innovation in digital ecosystems. The study contributes to both theoretical and practical discussions on strategic decision-making in rapidly evolving digital landscapes.