Investigators at University of Science and Technology China Describe Findings in Agricultural Insurance (Agricultural Insurance and Power Structure In a Capital-constrained Supply Chain): Agriculture – Agricultural Insurance

2024 MAR 08 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Data detailed on Agriculture - Agricultural Insurance have been presented. According to news reporting from Hefei, People’s Republic of China, by NewsRx journalists, research stated, “This study focuses on an agricultural supply chain with a capital-constrained manufacturer, a bank and an insurer under three power structures: insurer-led Stackelberg (IS), bank-led Stackelberg (BS) and vertical Nash (VN). By establishing a two-level Stackelberg game, we examine the application condition and role of agricultural insurance under three channel structures and reveal the preferences of the supply chain and its participants for different channel structures.”

Financial supporters for this research include National Natural Science Foundation of China (NSFC), National Natural Science Foundation of China (NSFC), National Natural Science Foundation of China (NSFC), National Natural Science Foundation of China (NSFC).

The news correspondents obtained a quote from the research from the University of Science and Technology China, “This study shows that, in either model, the manufacturer purchases agricultural insurance when the bank is highly loss-averse, but the probability of the manufacturer adopting agricultural insurance in the BS model is lower than that of the VN model but higher than that of the IS model. In these three models, the manufacturer’s application of agricultural insurance increases the profits of the manufacturer, bank and insurer but reduces supply chain efficiency. In addition, from the perspective of the profit level and profit share of supply chain participants, for the manufacturer, the VN model of the two-level supply chain power structure betters than the BS and IS models of the three-level supply chain power structure, but the BS model is superior to the IS model; for the bank and the insurer, the higher their leadership positions in which power structure model, the better the power structure model. From the perspective of the overall profit and efficiency of the agricultural supply chain, the model preference of the supply chain is the same as that of the manufacturer.”

According to the news reporters, the research concluded: “The findings provide new theoretical insights for the application of agricultural insurance and power relationship in the agricultural supply chain.”

This research has been peer-reviewed.

For more information on this research see: Agricultural Insurance and Power Structure In a Capital-constrained Supply Chain. Transportation Research Part E-logistics and Transportation Review, 2023;171. Transportation Research Part E-logistics and Transportation Review can be contacted at: Pergamon-elsevier Science Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, England.

Our news journalists report that additional information may be obtained by contacting Yong Zha, University of Science and Technology China, School of Management, Hefei 230026, People’s Republic of China. Additional authors for this research include Hongping Li and Gongbing Bi.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.tre.2023.103037. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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