Moral Risk Prevention of Pig Breeding Enterprises

  • Shajunyi Zhao
Keywords: Pig Farming, Enterprise Moral Hazard, Bayesian Decision-Making, Environmental Protection

Abstract

With the development of pig farming in China, the scale of pig farming is gradually expanding, the
pattern of aquaculture main body has changed, which is characterized by rapid expansion of aquaculture
enterprises and rapid exit of retail investors. Although it is now in the background of rapid development of
science, technology and economy, pig farming technology has also made some progress, and has been supported
by the government's policy. But at the same time, the development of pig breeding industry also contains a lot of
moral hazards, which is not conducive to the development of pig breeding enterprises. The main purpose of this
paper is to study the moral hazard of pig farming enterprises. In this paper, quantitative and qualitative research
methods are used, based on the general principles and methods of risk decision-making and Bayesian method,
the process of moral hazard decision-making in pig farming was systematically analyzed. Experiments prove
that, Bayesian method provides a reliable tool for risk decision-making of pig farming enterprises. In this paper,
the loss values of three schemes of pig farming scale expansion, scale invariance and scale reduction are
discussed respectively. The corresponding loss values of the three schemes are - 9.8909, - 7.3128 and - 8.4859.
It can be seen that Bayesian risk decision-making model is helpful for pig farming enterprises to avoid moral
hazard.

Published
2019-11-01