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The Effectiveness of the Multilateral Coalition to Develop a Green Agricultural Products Market in China Based on a TU Cooperative Game Analysis

Mingjun Deng (), Guocheng Xiang and Shuntian Yao ()
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Mingjun Deng: Business School, Hunan University of Science and Technology, Xiangtan 411201, China
Shuntian Yao: Business School, Hunan University of Science and Technology, Xiangtan 411201, China

Sustainability, 2018, vol. 10, issue 5, 1-17

Abstract: Green agriculture can improve biodiversity, increase farmers’ income, reduce agricultural non-point source pollution, solve food safety issues, and will be an important way to promote sustainable development in China. At present, the green transformation of China’s agriculture has encountered a bottleneck in the development of a green agricultural product market. How to develop a green agricultural product market has become an issue worthy of in-depth study in the academia. Previous studies have already given persuasive explanations for the inability to form a green agricultural product market, but few have explored its development path from the angle of cooperation. By employing the method of a Transferable Utilities (TU) cooperative game, and based on theoretical analyses and hypothetical data, this thesis aims to prove the effectiveness of the multilateral coalition to develop the green agricultural product market in China. The results show the effectiveness of the developed model of the green agricultural product market in which producers, consumers, food safety inspection departments, and e-commerce platforms cooperate with each other. This model meets the objective needs of the times and that of the market economy. According to the marginal contribution value of participants in different coalition orders, this thesis finds 6 kinds of coalition orders. When producers and consumers of green agricultural products enter the coalition in the last place, the marginal contribution value is maximized, which reflects the importance of the supply side and demand side of green agricultural products. In other words, the development of the green agricultural product market is a dynamic process—determined by consumers and promoted by producers—in which both sides promote and restrict each other. Finally, this article presents two policy recommendations: at the national level, to clearly proposes a strategy to build a green agricultural product e-commerce platform in China and to launch a pilot application for the specialized e-commerce platform for green agricultural products in the Guizhou province.

Keywords: green agricultural products market; multilateral coalition; TU cooperative game; Shapley value; e-commerce platform (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2018
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