Cooperation performance analysis and optimal solutions for a regional agricultural service network

Agriculture service network is a very popular pattern for a local government to integrate regional agriculture supply chains. Based on the cooperation characteristics of Long Shang-Xing (LSX) agriculture service network established by Jingzhou TV station, a theoretical model was provided to explore the optimal decision of LSX platform and the agents in the service network. The analytical results deduced from the model indicate that there are no reasonable Stackelberg equilibrium decisions under the existing cooperation mechanism among them. The LSX platform has no positivity to invest more for improve its negotiation or service capability and the agents are in a dilemma that keeping price competitiveness is contradictory with increasing their expected profits. As a result, the LSX agriculture service network presently can not contribute to the development of regional agriculture cluster. Suggestions for solving these problems involve modifying its functions to be a non-profit information platform, and introducing the cooperation mode of virtual enterprise in the future.