Research on the Reward and Punishment Feedback Contract Based on Asymmetric Information under the "Company + Farmer" Model

Abstract

With the rapid development of biomass energy industry in China, the research on supply chain coordination, in terms of structure and operational features, has significant theoretical and practical meaning. Current domestic research has not conducted any in-depth studies of contract theory in company + farmer model that demonstrate the characteristics of biomass supply chain operations. This paper, applies information economy, game theory and other related methods, and uses the modified reward and punishment feedback contract based on asymmetric information under the company + farmer model in the supply chain of biomass fuel. Considering the asymmetric information of this model, the key parameters were determined to build an improved model, which reflected the characteristics of biomass fuel supply chain operation. Moreover, the study established an optimal coordination strategy to promote the comprehensive benefits and the overall competitiveness in the sector of Chinese biomass energy industry.