Study On The Influence Of Digital Economy On The Price Fluctuation Of Agricultural Products

The report of the 20th CPC National Congress pointed out that "the most arduous and arduous task of building a modern socialist country in an all-round way is still in the rural areas." The 2022 National Agricultural and Rural Market Information work Conference mentioned that "rural work should be carried out firmly around the smooth operation of the agricultural product market." It can be seen that the stable and orderly agricultural product market plays a vital role in the process of China’s economic development.In recent years,the disorderly fluctuation of agricultural product prices in China has had a great impact on the stable regulation and control of China’s agricultural product market,and hindered the development of the work of ensuring the supply and price of "vegetable basket" products,in which information asymmetry plays an important role.Information asymmetry results in the high cost of market search for agricultural products,and market subjects,especially farmers,are unable to make optimal prices.at the same time,market prices fluctuate disorderly,and even market failure occurs.In the traditional agricultural product market,due to the limitation of region and technology,the agricultural system is unable to accurately monitor the price of agricultural products,and it is also difficult to promote the effective transmission of information among farmers.it appears to be "helpless" in view of the asymmetry of agricultural information,but with the construction of agricultural information system,the digital economy has given a new "mitigation plan".Search for the existence of friction,agricultural markets will show the characteristics of price fluctuations(Stiglitz,1974,p.431).Based on this,the core mechanism of digital economy affecting price fluctuation is to reduce market uncertainty and ease search friction through the transmission of effective information from data.In real life,the agricultural product market with digital elements has more regulatory advantages than the traditional market,and the reduction of search friction is more significant.Furthermore,with the continuous penetration and development of digital economy in the field of agricultural economy,the information infrastructure serving agricultural products trading has gradually covered all levels of cities,villages and towns,and agricultural products trading chains at all levels have been deeply integrated.Its transaction subject is endowed with more information efficiency,reduces the search cost faced by the transaction subject in the information search,strengthens its information search willingness,and reduces the price fluctuation of agricultural products.In the agricultural product market with asymmetric information,the higher the price fluctuation is,the more need the government to intervene externally to promote the orderly development of the market(Stigler,1974).The digital economy provides more solutions to the improvement of price fluctuation.Based on this background,it is necessary to study the mechanism and effect of digital economy on the price fluctuation of agricultural products.This paper focuses on the price fluctuation of agricultural products market,and analyzes it from two aspects: one is to measure the price fluctuation of agricultural products through effective evaluation indicators,and to sort out the price fluctuation of the current agricultural products market in China.Second,combined with the level of digital economic development of relevant prefecture-level cities and the mismatch index of material capital and human capital,carry out empirical modeling,and carry out the effect analysis and mechanism analysis of digital economy on the price volatility of agricultural products.The main conclusions of this paper are as follows: the continuous development of digital economy has reduced the cost of information search for farmers and other transaction subjects,improved the mobility and sharing of information in agricultural areas,and the price fluctuation of agricultural products shows a weakening trend,thus it can be seen that the digital economy plays an important role in helping the agricultural product trading market to alleviate the search friction,and its great potential in reducing the cost of information search is becoming increasingly prominent.Through the research of this paper,this paper reveals the changes of price fluctuations at the theoretical level,and verifies that "the development of digital economy has greatly improved the information mastery ability of agricultural market participants,and reduced the cost of information search." and then realize the convergence of agricultural product price fluctuations in the agricultural product market,expanding the boundary of the theory of search and matching.On the practical level,it provides data confirmation and decision-making suggestions for the current implementation of digital agriculture rural strategy and the feasibility of promoting the development of agricultural products market.The main innovation of this paper lies in that starting from the supply side of agricultural products,through the construction of evaluation indicators,this paper makes a quantitative analysis of the price fluctuation of agricultural products,and analyzes the price fluctuation of agricultural products in a new perspective with the combination of theoretical and practical background.to provide some reference for the regulation and precise implementation of China’s agricultural product market.