A study on cooperative members' investment behaviors based on the multi-stage dynamic game model

Abstract

Farmer Cooperative Organization Plays an important role in developing agricultural production and rural economy, but it is instable and fluctuates for lack of funds. By analyzing their decision making behavior based on the multi-stage dynamic game model, the author found out that individuals of farmer cooperatives tend to have herd behavior in investment decision making. The results of the study show that one effective solution to the funds shortage is to first attract those capable core individuals who possess more social capital to invest into the cooperatives, since other individuals will be affected by them to invest.