Incentive Strategies and Dynamic Game Analysis for Supply Chain Quality Governance from the Perspective of Agricultural Product Liability
Abstract
1. Introduction
2. Materials and Methods
2.1. Assumptions and Parameter Settings
- (1)
- Strategy space and probability distribution. The probability of farmers choosing high-quality production is , and the probability of low-quality production is . The probability of agricultural product e-commerce enterprises adopting an ex-ante cost-sharing strategy is , and the probability of not adopting this strategy is . The probability of the government choosing collaborative governance is , and the probability of strict supervision is .
- (2)
- Production costs and revenue structure. Referring to the literature by Liu Xiaoli [17], the cost for farmers engaging in high-quality production is denoted as , and the direct revenue as ; the e-commerce enterprise and the government also gain marginal benefits and , respectively. When producing with low quality, the farmer’s cost is , direct revenue is , and the farmer incurs a negative utility due to reputational loss. With probability (where ), the farmer obtains a spillover benefit , reflecting partial gains from quality and safety through speculative behavior.
- (3)
- Information Asymmetry and Herd Mentality. Drawing on research by Yang Haojun [18] and Papanastasiou, Y. & Savva, N et al. [19], farmers, constrained by limited knowledge and information asymmetry, tend to be influenced by group behavior when making decisions. If other farmers choose high-quality production, low-quality producers will perceive psychological pressure , leading to a perceived benefit loss of , where f (0 < f < 1) is the herding coefficient, representing the degree to which farmers are influenced by group behavior.
- (4)
- E-commerce enterprise liability and cost-sharing. Based on studies by Zhu Q et al. [20] and Chen Y et al. [2], this paper defines the revenue obtained by e-commerce enterprises from selling agricultural products as . However, it must bear the product liability cost caused by farmers’ quality defects. The e-commerce enterprise and the farmer bear proportions α and 1 − α of this cost, respectively, with 0 < α < 1. To improve farmer product quality, the e-commerce enterprise may implement an ex-ante quality cost-sharing policy: it bears a proportion γ (0 < γ < 1) of the farmer’s quality cost, while the farmer bears the remaining 1 − γ, satisfying α + γ ≤ 1.
- (5)
- Government supervision cost and penalty mechanism. Drawing on the research of Zhu Qinghua [21], the government’s cost for strict supervision, , is typically higher than that for collaborative governance, , i.e., , though the exact relationship may vary with policy implementation efficiency. The probability of the government detecting low-quality production by farmers is p. Under strict supervision, the penalty imposed on farmers is , and under collaborative governance, it is (with ). Here, it is further assumed that the government’s strategy choice (strict supervision or collaborative governance) does not affect the detection probability p; rather, decisions are driven by cost differences and penalty severity.
- (6)
- Incentive and penalty mechanisms under collaborative governance. Drawing on the studies of Tao X [22] and Su Xin et al. [23], under government-led collaborative governance, agricultural product e-commerce enterprises will provide a bonus to farmers engaged in high-quality production, while farmers producing low-quality products are required to compensate the e-commerce enterprises with a fine . E-commerce enterprises that adopt quality cost-sharing measures gain brand and market strategic value , while those that do not incur an opportunity cost . Collaborative governance enhances government credibility and regulatory efficiency, generating public benefit .
2.2. Subsection
3. Analysis of the Evolutionary Game Mode
3.1. Stability Analysis of the Evolutionary Strategies of Game Participants
3.1.1. Expected Payoffs and Stability Analysis for Farmers
3.1.2. Expected Payoffs and Stability Analysis for Agricultural Product E-Commerce Enterprises
3.1.3. Expected Payoffs and Stability Analysis for the Government
4. Analysis of Tripartite Evolutionary Game Equilibrium Points
Stability Analysis of Equilibrium Points in the Tripartite Evolutionary Game System
5. Numerical Simulation
5.1. Evolution Paths of the Three Game Agents
5.2. Impact of the Ex-Ante Quality Cost-Sharing Ratio on the System’s Evolutionary Outcome
5.3. Impact of Product Liability Sharing Ratio on System Evolution Outcomes
5.4. Impact of Farmers’ Herding Coefficient on System Evolution Outcomes
5.5. Impact of Farmers’ Spillover Benefit Coefficient on System Evolution Outcomes
5.6. Impact of the Government’s Detection Rate of Low-Quality Production by Farmers on Evolution Outcomes
6. Discussion
6.1. Implications for Theory
6.2. Implications for Practice and Policy
6.3. Limitations and Future Research Directions
7. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
- Qi, T.; Sun, R.; Guo, C. The Operation Mechanism of Agricultural Products Supply Chain and Profit Allocation Model in the Context of Asymmetric Information. Agric. Sci. Technol. 2016, 17, 197–200+233. [Google Scholar]
- Chen, Y.; Hua, X. Ex Ante Investment, Ex Post Remedies, and Product Liability. Int. Econ. Rev. 2012, 53, 845–866. [Google Scholar] [CrossRef]
- Fan, J.; Ni, D.; Tang, X. Product quality choice in two-echelon supply chains under post-saleliability: Insights from wholesale price contracts. Int. J. Prod. Res. 2017, 55, 2556–2574. [Google Scholar] [CrossRef]
- Cachon, G.P. Supply Chain Coordination with Contracts. In Handbooks in Operations Research and Management Science; Elsevier: Amsterdam, The Netherlands, 2003; Volume 11. [Google Scholar] [CrossRef]
- Antle, J.M.; Capalbo, S.M. Econometric-Process Models for Integrated Assessment of Agricultural Production Systems. Am. J. Agric. Econ. 2001, 83, 389–401. [Google Scholar] [CrossRef]
- Fecke, W.; Danne, M.; Musshoff, O. E-commerce in agriculture—The case of crop protection product purchases in a discrete choice Experiment. Comput. Electron. Agric. 2018, 151, 126–135. [Google Scholar] [CrossRef]
- Weiss, J.A. Review of Reinventing Government: How the Entrepreneurial Spirit is Transforming the Public Sector. Acad. Manag. Rev. 1995, 20, 229–235. [Google Scholar] [CrossRef]
- Williamson, O.E. The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting; Free Press: New York, NY, USA, 1985. [Google Scholar] [CrossRef]
- Sheu, J.B.; Chen, Y.J. Impact of government financial intervention on competition among green supply Chains. Int. J. Prod. Econ. 2012, 138, 201–213. [Google Scholar] [CrossRef]
- Park, S.; Yuan, Z.; Zhang, H. Technology training, buyer-supplier relationship, and quality upgrading in an agricultural supply chain. Rev. Econ. Stat. 2025, 107, 711–727. [Google Scholar] [CrossRef]
- Feng, L.D.; Gu, M.D. Product Innovation Strategy Based on Quality Heterogeneous Preference and Green Incentive Policies. Enterp. Econ. 2020, 2, 40–50. [Google Scholar] [CrossRef]
- Yoo, S.; Choi, T.; Kim, D. Multitier Incentive Strategies for Quality Improvement: Case of Three Tier Supply Chain. Decis. Sci. 2021, 52, 1137–1168. [Google Scholar] [CrossRef]
- Li, B.Y.; Ma, D.Q.; Dai, G.X.; Hu, J.S. Dynamic Quality Improvement Strategy of “Connecting Agriculture with Supermarkets” Supply Chain Considering Reference Quality Effect. Oper. Res. Manag. Sci. 2021, 30, 52–59. [Google Scholar] [CrossRef]
- Yang, D.; Xiao, T. Pricing and green level decisions of a green supply chain with governmental interventions under fuzzy Uncertainties. J. Clean. Prod. 2017, 149, 1174–1187. [Google Scholar] [CrossRef]
- Chen, H.; Feng, Q.; Cao, J. Rent-seeking mechanism for safety supervision in the Chinese coal industry based on a tripartite game model. Energy Policy 2014, 72, 140–145. [Google Scholar] [CrossRef]
- Li, X.; Qiao, L.; Zhao, T.; Kou, C. Exploring Sustainable Agricultural Supply Chain Financing: Risk Sharing in Three-Party Game Theory. Sustainability 2025, 17, 10003. [Google Scholar] [CrossRef]
- Liu, X.L.; Fu, J.Y.; Chen, K.L. Analysis on the Cooperative Behavior of Participants in E-commerce of Agricultural Products—Based on Traceability of Agricultural Products Quality and Safety. Mod. Manag. 2023, 43, 159–166. [Google Scholar] [CrossRef]
- Yang, H.J. Research on the Operational Mechanism of Agricultural Product Supply Chain Models from the Perspective of Information Asymmetry. J. Commer. Econ. 2016, 158–160. [CrossRef]
- Papanastasiou, Y.; Savva, N. Dynamic pricing in the presence of social learning and strategic consumers. Manag. Sci. 2017, 63, 919–939. [Google Scholar] [CrossRef]
- Zhu, Q.; Li, X.; Zhao, S. Cost sharing models for green product production and marketing in a food supply chain. Ind. Manag. Data Syst. 2018, 118, 654–682. [Google Scholar] [CrossRef]
- Zhu, Q.; Dou, Y. An Evolutionary Model between Governments and Core-enterprises in Green Supply Chains. Syst. Eng. Theory Pract. 2007, 27, 85–89. [Google Scholar] [CrossRef]
- Tao, X. A Study on the Evolutionary Game of the Four-Party Agricultural Product Supply Chain Based on Collaborative Governance and Sustainability. Sustainability 2025, 17, 1762. [Google Scholar] [CrossRef]
- Su, X.; Liu, H.L. Simulation Study on the Evolutionary Game of Agricultural Product Quality and Safety Under Farmer-Enterprise Cooperation. J. Agrotech. Econ. 2015, 11. [Google Scholar] [CrossRef]
- Fan, J.C.; Wan, N.N.; Li, Y.H.; Ni, D.B. Quality Incentive Strategies in Supply Chains Based on Product Liability Under Different Power Structure. J. Syst. Manag. 2023, 32, 438–462. [Google Scholar]
- Friedman, D.; Fung, M.K.Y. Evolutionary Games in Economics. Econometrica 1991, 59, 637–666. [Google Scholar] [CrossRef]
- Weibull, J.W. Evolutionary Game Theory; MIT Press: Cambridge, UK, 1995. [Google Scholar]
- Freeman, J. Collaborative governance in the administrative state. UCLA Law Rev. 1997, 45, 1–98. [Google Scholar]
- Corbett, C.J.; DeCroix, G.A. Shared-savings contracts for indirect materials in supply chains: Channel profits and environmental impacts. Manag. Sci. 2001, 47, 881–893. [Google Scholar] [CrossRef]










| Symbol | Meaning | Symbol | Meaning |
|---|---|---|---|
| x | Probability of farmers producing high-quality | PS, PC | Penalty imposed by the government on farmers for low-quality production |
| y | Probability of e-commerce enterprises adopting quality incentives | H | Bonus given by e-commerce enterprises to farmers for high-quality production |
| z | Probability of government adopting collaborative governance | PF | Penalty paid by farmers to e-commerce enterprises for low-quality production |
| CH, CL | Cost of high-quality production and low-quality production by farmers | V | Brand and market strategic value obtained by e-commerce enterprises |
| REH, REL | Revenue from high-quality production and low-quality production by farmers | CF | Opportunity cost incurred by e-commerce enterprises |
| ME, MG | Marginal benefit obtained by e-commerce enterprises and government | RC | Public benefit under government collaborative governance |
| CP | Psychological pressure on farmers | m | Spillover coefficient of farmers |
| RE | Revenue obtained by e-commerce enterprises from selling agricultural products | ƒ | Herding coefficient of farmers |
| L | Liability cost | γ | Proportion of quality cost borne by e-commerce enterprises |
| FN | Reputational loss of farmers | α | Proportion of liability cost shared by e-commerce enterprises |
| CS, CC | Cost incurred by the government under strict supervision, collaborative governance | β | Probability of the government detecting low-quality production by farmers during supervision |
| Strategy | Government | ||||
|---|---|---|---|---|---|
| Collaborative Governance (z) | Strict Supervision (1 − z) | ||||
| Farmers | high-quality production (x) | enterprises | implementing quality incentives (y) | RFH + H − (1 − γ)CH; RE + ME + V − γCH − H; RC + MG − CC | RFH − (1 − γ)CH; RE + ME − γCH; MG − CS |
| NOT implementing quality incentives (1 − y) | RFH + H − CH; RE + ME − H − CF; MG − CC | RFH − CH; RE + ME; MG − CS | |||
| low-quality production (1 − x) | enterprises | implementing quality incentives (y) | (1 + m)RFL − (1 − γ)CL − ƒCP − FN − βPC − PF − (1 − α)L; RE + PF − γCL − αL; βPC − CC | (1 + m)RFL − (1 − γ)CL − ƒCP − FN − βPS − (1 − α)L; RE − γCL − αL; βPS − CS | |
| NOT implementing quality incentives (1 − y) | (1 + m)RFL − CL − ƒCP − FN − βPC − PF; RE + PF − L; βPC − CC | (1 + m)RFL − CL − ƒCP − FN − βPS; RE − L; βPS − CS | |||
| Equilibrium Points | λ1 | λ2 | λ3 |
|---|---|---|---|
| E1 (0,0,0) | RFH − (1 + m) × RFL + CL − CH + fCP + FN + PS × β | (1 − α) × L − CL × γ | CS − CC + β × (PC − PS) > 0 |
| E2 (1,0,0) | −[RFH − (1 + m) × RFL + CL − CH + fCP + FN + PS × β] | −CH × γ | CS − CC > 0 |
| E3 (0,1,0) | RFH − (1 + m) × RFL + (1 − γ) × CL–(1 − γ) × CH + fCP + FN + PS × β + (1 − α) × L | −(1 − α) × L + CL × γ | CS − CC + β × (PC − PS) > 0 |
| E4 (0,0,1) | RFH − (1 + m) × RFL + CL − CH + fCP + FN + H + PF + PC × β | (1 − α) × L − CL × γ | CC − CS − β × (PC − PS) < 0 |
| E5 (1,1,0) | −[RFH − (1 + m) × RFL + (1 − γ) × CL–(1 − γ) × CH + fCP + FN + PS × β + (1 − α) × L] | CH × γ > 0 | CS − CC + RC > 0 |
| E6 (1,0,1) | −[RFH − (1 + m) × RFL + CL − CH + fCP + FN + β × PC + H + PF] | CF + V − CH × γ | CC − CS < 0 |
| E7 (0,1,1) | RFH − (1 + m) × RFL + (1 − γ) × CL–(1 − γ) × CH + fCP + FN + (1 − α) × L + β × PC + H + PF | −(1 − α) × L + CL × γ | CC − CS − β × (PC − PS) < 0 |
| E8 (1,1,1) | −[RFH − (1 + m) × RFL + (1 − γ) × CL–(1 − γ) × CH + fCP + FN + (1 − α) × L + β × PC + H + PF] | CH × γ − V − CF | CC − CS − RC < 0 |
| Parameters | Initial Values | Parameters | Initial Values | Parameters | Initial Values |
|---|---|---|---|---|---|
| CH | 150 | L | 75 | V | 70 |
| CL | 120 | FN | 80 | CF | 75 |
| RFH | 220 | CS | 110 | RC | 100 |
| RFL | 200 | CC | 90 | γ | 0.4 |
| ME | 50 | PS | 130 | ƒ | 0.6 |
| MG | 60 | PC | 100 | α | 0.55 |
| CP | 80 | H | 80 | β | 0.4 |
| RE | 200 | PF | 80 | m | 0.3 |
Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content. |
© 2026 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license.
Share and Cite
Zhong, J.; Liu, H. Incentive Strategies and Dynamic Game Analysis for Supply Chain Quality Governance from the Perspective of Agricultural Product Liability. Logistics 2026, 10, 46. https://doi.org/10.3390/logistics10020046
Zhong J, Liu H. Incentive Strategies and Dynamic Game Analysis for Supply Chain Quality Governance from the Perspective of Agricultural Product Liability. Logistics. 2026; 10(2):46. https://doi.org/10.3390/logistics10020046
Chicago/Turabian StyleZhong, Jianlan, and Hong Liu. 2026. "Incentive Strategies and Dynamic Game Analysis for Supply Chain Quality Governance from the Perspective of Agricultural Product Liability" Logistics 10, no. 2: 46. https://doi.org/10.3390/logistics10020046
APA StyleZhong, J., & Liu, H. (2026). Incentive Strategies and Dynamic Game Analysis for Supply Chain Quality Governance from the Perspective of Agricultural Product Liability. Logistics, 10(2), 46. https://doi.org/10.3390/logistics10020046
