Abstract
In many countries, the governments support the development of local agriculture through subsidization. Subsidizing the sales of agricultural products through E-commerce channels is a way to support the development of agriculture in China. This study aims to develop a profit model and apply Stackelberg game theory to determine which type of subsidies and decision-making can provide the maximum benefits for agricultural products E-commerce supply chains. The results indicate that for both centralized decisions and decentralized decisions, the subsidizing to the agricultural cooperative is better than the subsidizing to consumers and no subsidization. The sales volume, preservation level, sales efforts, and overall profit of the agricultural products E-commerce supply chain are significantly higher. It suggests that the government should play a leading role to support the development of agricultural products E-commerce. This study contributes to agricultural research by developing a profit model to examine the effects of different government subsidy strategies on each member of the agricultural online shopping supply chain. Recommendations are provided for agricultural cooperatives, E-commerce platforms, and the government to improve the quality and sales of agricultural products through online shopping channels.
Highlights
When the E-commerce platform and the farmer cooperative realize centralized decision-making, the price of agricultural products will only increase by 2.01%, but the freshness level of agricultural products will increase by 155.69%, the sales volume will increase by 156.84%, the sales efforts of the E-commerce platform will increase by 156.87%, and the overall profit of the supply chain will increase by 59.45%
Research Conclusions products E-commerce supply chain are significantly higher for centralized decisions than for decentralized decisions
Without consideringInthe subsidization, the results of the comparative analysis indiconsidering the subsidization, the results indicate that, for both centralized decisions cate that the sales volume, preservation level, and overall profit of the agriand decentralized decisions, the sales benefitsefforts, from subsidizing to the agricultural cooperative is similar from the subsidizing to the online shopping platform
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. As for other business development such as policy support for online sales of agricultural products [8], the government could provide subsidizations for the sustainable development of agricultural products E-commerce. Considering the above options, the research question of this study is ‘What is the subsidization strategy that provides the maximum benefits for agricultural products E-commerce supply chains?’ Providing an answer to this answer will help the sustainable development of agricultural products E-commerce. This study contributes to agriculture research by promoting the development of agricultural products E-commerce, identifying the role of each party in the agricultural products E-commerce supply chain, and solving the three issues for agricultural products E-commerce mentioned by Huo and Mu [2]. It contributes to the E-commerce supply chain research by offering a profit model that includes the issues of agricultural products E-commerce under different government subsidization strategies. This study provides recommendations for agricultural cooperatives, online shopping platforms, and the government for implementing the subsidization strategies
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