The Optimal Decisions of the “Company + Farmer” Contract-Farming Supply Chain With Nash Bargain Fair Reference

Jipu WANG

Abstract


The contract-farming supply chain model consisting of one risk-neutral agribusiness and one risk-averse farmer with fairness concerns is proposed under stochastic yield. The fair reference framework is established according to Nash bargaining game. The impact on the optimal decision of contract-farming supply chain by the risk-averse farmer’s fairness concerns. The numerical study illustrates the application of the model, and analyze some parameter influencing the optimal decision between one risk-neutral agribusiness and one risk-averse farmer with fairness concerns.

Keywords


Nash bargaining game; Fairness concerns; Contract-farming supply chain; CVaR

Full Text:

PDF

References


Bogetoft, P., & Olesen, H. B. (2002). Ten rules of thumb in contract design: Lessons from Danish agriculture. European Review of Agricultural Economics, 29(2), 185-204.

Burer, S., Jones, P. C., & Lowe, T. J. (2008). Coordinating the supply chain in the agricultural seed industry. European Journal of Operational Research, 185(1), 354-377.

Cui, T. H., Raju, J. S., & Zhang, Z. J. (2007). Fairness and channel coordination. Management Science, 53(8), 1303-1314.

Du, S. F., Zhu, J. A., Gao, D., & Du, C. (2013). Optimal decision-making for Nash bargaining fairness concerned newsvendor in two-level supply chain. Journal of Management Sciences in China, 16(3), 68-81.

Fehr, E., & Schmidt, K. M. (1999). A theory of fairness, competition, and cooperation. Quarterly Journal of Economics, 114 (3), 817-868．

Guo, H. D. (2006). Leading enterprises and farmers arrangements with compliance orders: Theoretical and empirical research from Zhejiang enterprises. Issues in Agricultural Economy, (2), 37-42.

Kazaz, B., & Webster, S. (2011). The impact of yield-dependent trading costs on pricing and production planning under supply uncertainty. Manufacturing & Service Operations Management, 13(3), 404-417.

Kumar, N. (1996). The power of trust in manufacturer-retailer relationships. Harvard Business Review, 74(6), 92-106．

Liu, F. Q. (2003). Incomplete contracts and compliance barriers - in order agriculture case. Economic Research, (4), 22-30.

Loch, C. H., & Wu, Y. Z. (2008). Social preferences and supply chain performance: An experimental study. Management Science, 54(11), 1835-1849．

Rabin, M. (1993). Incorporating fairness into game theory and economics. American Economic Review, 83(5), 1281-1302.

Ye, F. (2011). CVaR based on “company + farmers” model of contract farming contract mechanism of supply chain coordination. Systems Engineering Theory and Practice, 31(3), 450-460.

Zhao, X., & Wu, F. W. (2009). Revenue sharing under random demand for agricultural output and supply chain coordination research contracts. China Management Science, 17(5), 88-95.

Zylbersztajn, D., Gualberto, A. P. L., & Nadalini, L. B. (2003). Tomatoes and courts: Strategy of the agro-industry facing weak contract enforcement. School of Economic and Business, University of Sao Paulo, Brazil, Worker Paper.




DOI: http://dx.doi.org/10.3968/n

Refbacks

  • There are currently no refbacks.


Copyright (c) 2016 Management Science and Engineering



Share us to:   

Reminder

  • We are currently accepting submissions via email only.

    The registration and online submission functions have been disabled.

    Please send your manuscripts to mse@cscanada.net，or mse@cscanada.org  for consideration.

    We look forward to receiving your work.

 


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
caooc@hotmail.com; mse@cscanada.net; mse@cscanada.org

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures