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2.2. Pork Demand and Supply

Norris [26] believed that consumption was mainly influenced by income, price, and consumption preferences. According to economic principles, substitutes such as mutton, beef, poultry, and fish will also affect pig consumption. Qi [27] calculated that the impact coefficient of pork and the substitutes is only 0.15, indicating that substitutes have little impact on pork consumption. When the residents’ income reaches a higher level, the increase in income does not significantly change the consumption of pork. He et al. [28] calculated the cross-price elasticity of pork and other five substitutes; the research found that the cross-price elasticity was almost zero. According to the prospect theory, the Heiner model, and the Simon model, the transaction parties do not expect to maximize their interests, but are “satisfied” (Heiner [29]). Pennings and Smidts’s research [30] on the Dutch pig market also showed that when making risk decisions, using a measurement method based on the expected utility model has a better behavioral prediction effect. The complexity of the details causes people to pay too much attention to their own business and ignore the plans of others, which leads to the phenomenon of “competitive neglect,” which makes the behavior of farmers consistent (Kahneman [31]). Through the regression analysis of the agricultural output and price changes, Bean [32] found that equilibrium prices usually lead to stable planting areas and livestock numbers. The above studies have conducted a detailed analysis of the factors affecting the supply and demand of live pigs.