160 / 2024-04-22 11:50:51

Precision agriculture trap: the role of artificial intelligence in agriculture from the perspective of game theory

Precision agriculture; game theory; yield uncertainty;

We develop a game-theoretic model including a group of infinitesimal farmers with heterogeneous planting costs in a competitive market. Farmers choose to grow two different but yield-related crops. The government launches a precision agriculture service for farmers with two features: crop recommendation and planting cost optimization. Farmers rationally decide whether to commit to the service and which features to use. The role of precision agriculture can be judged by analyzing farmers' income and uncertainty in the market. Specifically, we focus on exploring the following questions:



(1)    How will precision agriculture impact farmers' planting decisions in a competitive market? What about the adoption level of precision agriculture in equilibrium?



(2)    What is the interaction between the two features of precision agriculture, and how each is related to yield correlation?