Optimal government subsidy strategy for fresh agricultural products supply chain under adverse weather: a two-stage dynamic game model

ABSTRACT

To investigate the effects of various government subsidies on the decision of agricultural products supply chain under adverse weather, this paper depicts the random profit function of adverse weather affecting the output of fresh agricultural products. Then, both the centralised and decentralised decision-making models are set with various government subsidies, i.e. no subsidy, output subsidy, procurement subsidy, one-time subsidy to company and one-time subsidy to farmer. Through comparative analysis and numerical analysis, we explore the effects of adverse weather and different government subsidies on the supply chain decisions including planting effort, procurement price and retail price.

KEYWORDS:

• Fresh agricultural products supply chain
• government subsidy
• budget constraint
• adverse weather

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The research is supported by the Chongqing Education Commission Humanities and Social Sciences Planning Major Project [No. 23SKGH245].