Abstract:
The farmers' interests are hurt when the powerful retailers offer a depressed price. To solve this problem, considering weak farmers' self-interest fairness concerns and Nash bargaining fairness concerns, the effect of the farmer's fairness concerns on operation efficiency of agri-food supply chain is studied using Stackelberg game theory. The conclusions indicate that the purchase price under self-interest fairness concerns is highest, and the preservation effort level under Nash bargaining fairness concerns is highest. Whatever fairness concerns the farmer has, the freshness-preservation effort cost sharing contract cannot coordinate supply chain. If the farmer alone bears the freshness-preservation effort cost, Pareto improvement for supply chain system's profit can be implemented just under farmers' Nash bargaining fairness concerns.