The agricultural supply chain has to balance the economic, environmental, and social dimensions of sustainability. This paper investigates the green agricultural supply chain, consisting of a manufacturer and a retailer, who are both altruistic towards consumers. Such consumer-oriented altruism is different from the widely adopted enterprise-oriented altruism, which only measures the altruistic behaviors among supply chain enterprises. In the approach of game theory, the optimal operational decision is obtained, and thereby the economic, environmental, and social dimensions of sustainability are described rationally and attained, respectively. The impacts of consumer-oriented altruism on the sustainability of the green agricultural supply chain are analyzed and compared in a systematic way. A case study is carried out before drawing conclusions and managerial implications. The findings can be concluded as follows. Firstly, consumer-oriented altruism changes the operational performance of the green agricultural supply chain by enhancing the green level of agricultural products, cutting down the pricing decisions and marginal profit of each supply chain enterprise. Secondly, consumer-oriented altruism simultaneously facilitates each dimension of sustainability to different extents, and economic sustainability is promoted the most prominently, whereas environmental sustainability is improved the least. Thirdly, the retailer’s consumer-oriented altruism always improves each dimension of sustainability more than the manufacturer’s altruism does, and the advantage in the economic dimension is the most significant, while that in the environmental dimension is the smallest.
Fresh agricultural products are highly perishable, and inadequate preservation leads to food loss and supply chain inefficiency, undermining sustainability. This study develops a continuous-time differential game model to analyze dynamic pricing and cold-chain investment decisions in a two-echelon fresh agricultural produce supply chain under government intervention. Two subsidy regimes are examined: one targeting suppliers’ cold-chain investments and another supporting the retailer based on sales volume. By explicitly modeling the dynamic evolution of product freshness, we analyze how subsidy intensity and allocation influence firms’ strategies, market outcomes, and social welfare over time. The results show that when initial freshness is low, firms consistently adopt a penetration pricing strategy and increase cold-chain investment irrespective of subsidy intensity. In contrast, when initial freshness is high, a critical subsidy threshold emerges: Below this threshold, firms employ skimming pricing and reduce investment, whereas above it, they switch to penetration pricing and raise investment. Under equal government expenditure, supplier subsidies achieve higher product freshness but raise retail prices, while retailer subsidies lower prices and stimulate demand, albeit with more modest freshness improvements. Welfare effects are non-linear: supplier subsidies are more effective at low intensities, whereas retailer subsidies become superior beyond a specific threshold. These findings provide actionable insights for designing sustainable, targeted subsidy policies in fresh agricultural supply chains.
1 January 2024 in International Journal of Information Systems and Supply Chain Management
This study delves into the operational decision-making and sustainability dynamics within a two-tier green agricultural supply chain (GASC), comprising a manufacturer and a retailer. By developing decision models for the manufacturer, both with and without outward altruism, we explore the intricate interplay of government subsidies, consumer green preferences, and manufacturers' altruistic behavior influencing operational efficiency and sustainability within the GASC based on the Stackelberg Game. Our findings underscore the intricate relationship between these factors and the retail pricing of green agricultural products. Specifically, we demonstrate that while the manufacturer's outward altruism is significant, the combined effects of government subsidies and consumer preferences exert substantial influence on pricing strategies. Moreover, we reveal that government subsidies, consumer preferences for sustainability, and manufacturers' altruistic actions collectively bolster the economic, environmental, and social dimensions of sustainability within the GASC.