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Competition and Coordination of Regional Fresh Supply Chain Under Government Regulation

Author

Listed:
  • Chao Zhao

    (School of Management, Tianjin University of Commerce, Tianjin 300134, China
    Research Center for Management Innovation and Evaluation, Tianjin University of Commerce, Tianjin 300134, China)

  • Yongmei Chi

    (School of Management, Tianjin University of Commerce, Tianjin 300134, China
    Research Center for Management Innovation and Evaluation, Tianjin University of Commerce, Tianjin 300134, China)

  • Nini Gao

    (School of Management, Tianjin University of Commerce, Tianjin 300134, China
    Research Center for Management Innovation and Evaluation, Tianjin University of Commerce, Tianjin 300134, China)

  • Jixiang Song

    (Key Laboratory for Mechanics in Fluid-Solid Coupling Systems, Institute of Mechanics, Chinese Academy of Sciences, Beijing 100190, China)

Abstract

Fresh agricultural products have significant seasonality and perishability, and their cross-regional sales often face differences in market demand, price, and sales volume. In the context of government quality regulation, competition among retailers in different regions drives supply chain members to improve product quality, expand sales, and reduce losses. However, conflicts of interest under decentralized decision-making may lead to overall inefficiency. This article constructs a supply chain model consisting of a single Manufacturer and two regional Retailers to study the quality competition and coordination mechanism of cross-regional fresh food supply chains under government supervision. By comparing centralized and decentralized decision-making, it is found that although quality improvement in decentralized mode helps enhance competitiveness and sales performance, it is difficult to effectively increase profits and may even lead to a decline in profits. Therefore, this article proposes a cost-sharing contract to achieve supply chain coordination. Research has shown that this contract can effectively improve the overall profit of the supply chain and achieve Pareto improvement; under high market demand and strict regulatory penalties, the total profit of the supply chain increases, but the dominant Retailer benefits more, which can easily trigger the “Matthew effect”. The research results reveal the comprehensive impact of quality investment, contract coordination, market demand fluctuations, and regulatory intensity on supply chain performance, providing theoretical basis and management insights for improving the collaborative efficiency and policy design of cross-regional fresh food supply chains.

Suggested Citation

  • Chao Zhao & Yongmei Chi & Nini Gao & Jixiang Song, 2025. "Competition and Coordination of Regional Fresh Supply Chain Under Government Regulation," Games, MDPI, vol. 16(5), pages 1-21, October.
    • Handle: RePEc:gam:jgames:v:16:y:2025:i:5:p:53-:d:1768105
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    References listed on IDEAS

    as
    1. Yoshihara, Rikuo & Matsubayashi, Nobuo, 2021. "Channel coordination between manufacturers and competing retailers with fairness concerns," European Journal of Operational Research, Elsevier, vol. 290(2), pages 546-555.
    2. Jill E. Hobbs, 2021. "Food supply chain resilience and the COVID‐19 pandemic: What have we learned?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(2), pages 189-196, June.
    3. Yang, Shan-Lin & Zhou, Yong-Wu, 2006. "Two-echelon supply chain models: Considering duopolistic retailers' different competitive behaviors," International Journal of Production Economics, Elsevier, vol. 103(1), pages 104-116, September.
    4. Modak, Nikunja Mohan & Panda, Shibaji & Sana, Shib Sankar, 2016. "Three-echelon supply chain coordination considering duopolistic retailers with perfect quality products," International Journal of Production Economics, Elsevier, vol. 182(C), pages 564-578.
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