Seminario 24/08 – Anjeza Bekolli (Agricultural University of Tirana, Albania): Distribution of Profits in Agricultural Supply Chains: A Cooperative Game Theory Approach

Información

In this study, our focus is on decentralized agricultural supply chains, where multiple non-competing distributors serve the demand of their respective markets. These distributors procure a single product from a farmer through an agricultural cooperative within a specific timeframe. Agents can coordinate their actions to maximize profits, employing cooperative game theory to analyze cooperation among them. Distributors can participate in joint ordering, thereby increasing order size and reducing the price per kilogram. Additionally, they have the option to collaborate with the farmer to secure a reduced price per kilogram, compensating the farmer for kilograms that were not acquired in accordance of cooperation agreement. We introduce multidistributor-farmer games to illustrate incentives for cooperation among all agents. Stable allocations are established where no subgroup of agents benefits from separation. Furthermore, we propose and characterize a fair distribution of total profits, recognizing the farmer’s contribution. Finally, we examine conditions under which the farmer can be compensated to maximize their revenues when cooperating with all players.