Dynamic Output-Price Contract of Agricultural Supply Chain

From the perspective of mechanism design, we analyzed the choices of the farmers' supply and prices of leading enterprise of the agricultural supply chain in the case of uncertainty supply of farmers and variable price of leading enterprise by the trading mechanisms including uniform price and discrimination price, and comparative analyzed the relevant properties of the two kinds of trading mechanism. The results showed that: For the uniform price trading mechanism, the quantity of farmers submit below its real supply at the low price, and above their true supply quantity at the high price. For the discrimination price trading mechanism, the quantity of farmers submit below their real supply at the low price, and equal their true supply quantity at the high price. Contrast to price discrimination auction, the more retailers participate into the trading mechanism, the less distortion of quantity submitted of farmers. From mechanism design point of view, leading enterprise tends to use uniform price trading mechanism for procurement of agricultural product.