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Price Paradox and Strategic Choice of "Vegetable Basket" in China

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  • Li, Wu

Abstract

By using the analysis method of game theory, this paper analyzes the phenomenon of price paradox of vegetable basket in China and its reason as follows: me price paradox of vegetable basket in China is that if the vegetable is cheap, it will harm farmers, and if the vegetable is expensive, it will harm people; high-cost logistics, low negotiation status of vegetable growers and cooperation predicament are responsible for price paradox. Based on the theoretical basis of strategic choice-theory of intermediaries, it indicates that the intermediaries can realize effective transaction and save transaction cost. The strategic choice of solving price paradox of vegetable basket is put forward as follows, support vegetable growers' cooperatives, reduce transaction cost and raise the negotiation status of vegetable growers; develop the model of connection of agricultural products and supermarkets, and reduce the cost of transport and distribution; innovate upon intermediaries and develop the third-paw logistics.

Suggested Citation

  • Li, Wu, 2011. "Price Paradox and Strategic Choice of "Vegetable Basket" in China," Asian Agricultural Research, USA-China Science and Culture Media Corporation, vol. 3(05), pages 1-4, May.
    • Handle: RePEc:ags:asagre:117243
    DOI: 10.22004/ag.econ.117243
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    Keywords

    Agribusiness;

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