Cooperative Supply of Service by Heterogeneous Member: a Perspective of Coalitional Game Theory

As heterogeneity among members increasing, significant advances were made where modelers viewed the cooperative as a coalition. The key to establish and maintain stable cooperative relations is to distribute the benefits among them reasonably and efficiently. The paper applied the coalitional game theory and one of its solutions-Shapley value-to model conceptually from perspectives of investment incentives and barging power and analyzed the benefits distribution among heterogeneous members in growing size or efficiency in China. It is pointed out that co-ops while adopted incentive measures to appeal high-efficiency farmers should pay attention to the realization of equity principle.