The Distribution of Benefits for Players in Agricultural Industrial Chain

Wanming Li and Huibo Sun

Asian Agricultural Research, 2015, vol. 07, issue 01, 4

Abstract: Players of the agricultural industrial chain pursue their own profit maximization, which can lead to conflicts of interest and affect the stability of the industrial chain. Therefore, fair and reasonable profit allocation mechanism is the key to guaranteeing the development and strengthening the strategic alliance relationship between participate members. Shapley model is an effective method to solve the profit distribution in cooperative relations. But it does not consider the three factors: risks faced by players during the operation of the agricultural industrial chain, technology innovation ability, and the degree of participating in the cooperation. So, correction factors are introduced to modify the Shapley value model, in order to make the distribution of benefits more equitable and reasonable, and effectively guide practice.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asagre:200379

DOI: 10.22004/ag.econ.200379

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