Research On Equilibrium Strategies For Contract Farming Supply Chain Considering Farmers’ Fairness Concern

The contract farming model refers to a new agricultural business model that organizes company and farmers through contract,which can help improve the agricultural productivity and social benefits.However,in the contract fanning channel structure,the farmers are still at the absolute disadvantaged position.This unbalanced power within organization will seriously affect the farmers’ enthusiasm in investment and production,which may promote them to have speculative behavior,and it may also generate safety issues of the quality of agricultural products.In addition,under the current complicated operation environment of contract farming supply chain,the company might establish production-marketing relation with multiple farmers with similar products,and the levels of agricultural supply chain will also increase.Based on that,this paper includes the farmers’ fairness concern behavior into the research perspective to study its influence on the operation of "company+ two farmers"contract farming supply chain and "retailer+ wholesaler+ farmer" three-level contract farming supply chain.First of all,in accordance with the farmers’ fairness concern characteristics in the " company+ two farmers " contract fanning supply chain,the F-S model was used to build the farmers’ fairness concern utility function.We also built the Stackelberg game model between the company and fanner and the Cournot game model between two farmers;we obtained the decision strategies of the company and two fanners when there is only vertical/horizontal fairness concern behavior between farmers and when the vertical and horizontal fairness concern behaviors both exist,and analyzed the influence of farmers’ vertical/horizontal fairness concern behavior on the operation deviation of "company+ two farmers" contract farming supply chain.The research shows that although different vertical/horizontal fairness concern behavior of the famer might generate different change on their investment and efforts level,it will all increase purchasing price of the company.Secondly,in accordance with the farmers’ fairness concern characteristics in"retailer+ wholesaler+ fanner" three-level contract fanning supply chain,the F-S model was also used to build the farmers’ fairness concern utility function.We also built the Stackelberg game model between the retailer and wholesaler and between the wholesaler and farmer;we obtained the decision strategies of retailer,wholesaler and farmer when the farmer uses the wholesaler’ s income,retailer’ s income and the mixed income of retailer and wholesaler as the fairness reference point,and analyzed the influence of farmers’ fairness concern behavior on the operation deviation of three-level contract farming supply chain when the farmer chooses different reference point.The research shows that supply chain when the farmer chooses different reference point,it will increase the purchasing price of wholesaler and retailer in a certain degree,which will cause certain income transfer from wholesaler and retailer to farmer,but it will not affect the overall income of supply chain and farmer’ s own fairness concern utility.