Industrial Engineering Journal ›› 2021, Vol. 24 ›› Issue (1): 59-65.doi: 10.3969/j.issn.1007-7375.2021.01.008

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The Incentive Contract of Community Supported Agriculture Based on Consumer Risk Aversion

SUN Lihui, LYU Jing, ZHANG Lei, GAO Peng   

  1. Business School, Qingdao University, Qingdao 266100, China
  • Received:2019-10-11 Published:2021-02-24

Abstract: To study the impact of risk aversion of investment consumers on the profits and decision-making of fresh agricultural products companies and their cooperation mechanismin in the community supported agriculture system. The demand function impact by freshness and price and the utility function of risk-averse investment consumers and the revenue sharing function of fresh agricultural products companies and investment consumers are constructed. The optimal profits sharing ratio, preservation effort and profit of each participant under the condition of complete and incomplete information were obtained. And its numerical simulation is carried out. It is found that Pareto optimal results exist under complete information. In incomplete information, there is an equilibrium solution.With the increase of risk aversion of investment consumers, the profits of consumers gradually decrease, while the profits of companies and the preservation efforts of investment increase. In the face of risk-averse consumers, the more risk-averse the consumers are, the more efforts company should invest in preservation, to ensure long-term cooperation with consumers and the development of community-supported agriculture.

Key words: community supported agriculture, fresh agriculture product, freshness, risk aversion

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