Game Analysis between Governments and Food Corporations in Food Supply Chain with Consumers' Prosecution

Abstract

In order to provide a quantitative tool in how governments supervise food corporations, this paper constructs game model between governments and food corporations when there is prosecution existing in the food supply chain. We can reach the pure strategy Nash equilibrium solution and the mixed strategy Nash equilibrium solution in different circumstances, and then contrast the differences of game results between scenarios with prosecution and non-prosecution scenarios. The results show that the payoffs and costs of governments, food corporations in food supply chain can influence the equilibrium results, and consumers' prosecution can decrease the probability that governments supervise food corporations.