Evaluating Traceability Technology Adoption in Food Supply Chain: A Game Theoretic Approach

Abstract

Food traceability in the supply chain is becoming increasingly important because of concerns such as fraud, adulteration, consumer requirements, and food loss. This study highlights the importance of food traceability in reducing food loss through the proper monitoring of food at every stage of the supply chain. The actions of individual players in a food supply chain affect its traceability. Moreover, the decisions made by one player influence the decisions of the other players. Thus, traceability becomes more complex as the number of players increases. Owing to the complex nature of a food chain, it is important to analyze all the possible strategies that stakeholders consider and understand the influence of those possible strategies on the traceability of a food supply chain. In this study, we deploy a game theory model to analyze the strategic combinations of all possible actions of different stakeholders to understand the complexities present in a food supply chain, as well as how these strategic combinations help in decision-making for the adoption of traceability in a food supply chain. Furthermore, we analyze the factors that may increase or decrease the probability of adopting traceability in a food supply chain.