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Agricultural Supply Chain Financing Strategies under the Impact of Risk Attitudes

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  • Shizhen Bai

    (School of Management, Harbin University of Commerce, Harbin 150028, China)

  • Xuelian Jia

    (School of Management, Harbin University of Commerce, Harbin 150028, China)

Abstract

Bank and e-commerce financing strategies are the main ways for farmers to solve the problem of capital shortage. Aiming at the uncertainty risk of the output of the agricultural product supply chain, we consider the risk attitudes of farmers; construct the Stackelberg game model under different financing strategies to obtain the optimal decision of e-commerce and farmers; and explore the expected output factors, the degree of farmers’ risk aversion, e-commerce’s interest rates on the decision-making results. Our research found that farmers with low-risk aversion prefer to choose the e-commerce financing strategy when the e-commerce’s interest rates are lower. In addition, farmers’ risk-averse attitudes lead to lower equilibrium decision-making between farmers and e-entrepreneurs, which is not conducive to the interests of e-commerce and farmers. A higher expected output factor reduces farmers’ production inputs and e-commerce purchase price. When the expected output factor is low, the decision of whether e-commerce provides financing services to farmers is only affected by interest rates, and lower interest rates create more value for e-commerce.

Suggested Citation

  • Shizhen Bai & Xuelian Jia, 2022. "Agricultural Supply Chain Financing Strategies under the Impact of Risk Attitudes," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8787-:d:865591
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    References listed on IDEAS

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    Cited by:

    1. Yuehua Xia & Honggen Long & Zhi Li & Jiasen Wang, 2022. "Farmers’ Credit Risk Assessment Based on Sustainable Supply Chain Finance for Green Agriculture," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    2. Shizhen Bai & Xuelian Jia, 2023. "The Impact of the Cost-Sharing Contract on Capital-Constrained Agricultural Supply Chains," SAGE Open, , vol. 13(1), pages 21582440231, February.

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