Digital technology adoption strategies for a contract farming supply chain under CVaR criterion

Abstract

This study considers a contract farming supply chain consisting of a platform and a risk-averse farmer with yield uncertainty. It establishes game theory models with and without digital technology under CVaR criterion and analyzes three digital cooperation mechanisms. We find that when the wholesale price is moderate, both parties will choose a cost-sharing contract; when the wholesale price is high, both parties will choose to let the farmer bear the cost of digital investment; when the farmer uses digital technology to grow agricultural products, the platform should not provide the farmer with a low wholesale price, especially for the farmer with low risk aversion.