Model of insurance for the investment in the agriculture supply chain using game theory

Document Type : Original Article

Authors
Hamed Forougozar 1
Davood Andalib Ardekani 2
Ali Morovati Sharifabadi 2
seyyed abiballah mirghafoori 2
1 PhD Candidate of Industrial Management, Department of Industrial Management, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran
2 Associate Professor, Department of Industrial Management, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran
10.30495/jik.2025.77431.4497
Abstract
A key challenge in responding to the emerging challenges in agri-food supply chains is encouraging continued new investment. This study examines how to manage risk by introducing insurance prices that may increase the likelihood of investment in the agricultural supply chain. The statistical population of this research is the insurance fund of the Agricultural Bank in Fars province. The direction of this research is developmental and applied. Also, the strategy in this research is survey type. This study is an attempt to introduce a new risk management approach to protect the volatile income of supply chains in the agricultural industry. The purpose of this research is to introduce a mathematical model that examines the price of insurance products to encourage investment in the agricultural industry. A model is introduced which shows how insurance products can reduce the uncertainty of the impact of investment. To show our results, we use game theory. The results demonstrate that the investment will have a greater impact when an insurance product is present and introducing products to secure supply chain actors’ revenue leading to an increase in investment rate.
Keywords
Price of insurance
Agriculture supply chain
Investment in agriculture
Game theory
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