The model of price discovery in fresh agri-product market after natural crisis

Abstract

The paper studies how to use the price discovery model to treat post-disaster reconstruction of fresh agri-product market price under the e-commerce environment. The price discovery model can effectively solve the contradiction between supply and demand in the situation that logistical facilities are greatly influenced by natural disasters. So it can help us from a new perspective to discuss and solve some decision-making problems about the price recovery and reconstruction of fresh agri-product markets. Sichuan Province as an example explains how the price discovery model is achieved. The result shows that even in the situation that infrastructures are severely effected by natural disasters, the price discovery model can help to find abnormal prices of fresh agriculture products after natural crisis and deal with the consequent conflicts, thereby helping the government to regulate and make decisions. © 2011 Springer-Verlag Berlin Heidelberg.