Strategies selection for building e-commerce platforms for agricultural wholesale markets: A tripartite evolutionary game perspective

Abstract

The rapid advancement and widespread implementation of digital technology have created opportunities for the e-commerce transformation of agricultural wholesale markets. The building of e-commerce platforms in this process is of utmost importance and should be approached methodically. This article analyzes the interests and behavioral choices of the agricultural wholesale markets, local government, and wholesalers by establishing a tripartite evolutionary game model. It applies replicator dynamics equations to describe the evolutionary strategies of each party. The findings of the study indicate that the behavioral choices of agricultural wholesale markets, local government, and wholesalers are influenced by their initial intentions. Furthermore, there exists a degree of alignment between the choices made by agricultural wholesale markets and wholesalers. The building of e-commerce platforms by agricultural wholesale markets can be facilitated through direct and indirect government subsidies; this also motivates wholesalers to adopt and utilize these platforms. Agricultural wholesale markets may further incentivize wholesalers to utilize their own e-commerce platforms by offering additional benefits. On the other hand, if the agricultural wholesale markets demonstrate strong initial inclinations toward using third-party e-commerce platforms. In this scenario, the local government has the potential to promote the widespread use of these platforms by providing both direct and indirect financial incentives to these markets, as well as actively encouraging wholesalers to participate in them. This study presents policy recommendations for agricultural wholesale markets and local government to support the effective implementation of e-commerce platforms in the agricultural wholesaler markets and facilitate a smooth transition to e-commerce in agricultural wholesale markets.