Price Paradox and Strategic Choice of "Vegetable Basket" in China

Wu Li

Asian Agricultural Research, 2011, vol. 03, issue 05, 4

Abstract: By using the analysis method of game theory, this paper analyzes the phenomenon of price paradox of vegetable basket in China and its reason as follows: me price paradox of vegetable basket in China is that if the vegetable is cheap, it will harm farmers, and if the vegetable is expensive, it will harm people; high-cost logistics, low negotiation status of vegetable growers and cooperation predicament are responsible for price paradox. Based on the theoretical basis of strategic choice-theory of intermediaries, it indicates that the intermediaries can realize effective transaction and save transaction cost. The strategic choice of solving price paradox of vegetable basket is put forward as follows, support vegetable growers' cooperatives, reduce transaction cost and raise the negotiation status of vegetable growers; develop the model of connection of agricultural products and supermarkets, and reduce the cost of transport and distribution; innovate upon intermediaries and develop the third-paw logistics.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ags:asagre:117243

DOI: 10.22004/ag.econ.117243

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