JOURNAL OF SHANDONG UNIVERSITY(NATURAL SCIENCE) ›› 2018, Vol. 53 ›› Issue (9): 83-94.doi: 10.6040/j.issn.1671-9352.0.2018.032

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Research on supply chain decision making of equitable retailers with fair sensitivities

ZHANG Ke-yong1*, LI Jiang-xin1, YAO Jian-ming2, LI Chun-xia1   

  1. 1. School of Economics and Management, North University of China, Taiyuan 030051, Shanxi, China;
    2. School of Business, Renmin University of China, Beijing 100872, China
  • Received:2018-01-23 Online:2018-09-20 Published:2018-09-10

Abstract: In order to study the influence of heterogeneity of subject of fair preference on the decision of supply chain, fair sensitivity was introduced to the decision model of fair preference decision-maker. We build a secondary supply chain consisting of a manufacturer, two competing retailers, one of which has a fair preference and fair sensitivity. Based on the social comparison theory, a supply chain decision model with horizontal equity preference and vertical equity preference was established, and the influence of fair sensitivity coefficient on decision variables and utility of decision makers was obtained. Finally, numerical examples were used to verify the conclusion. The results show that the existence of fair preference and fair sensitivity does not increase the utility value of retailer itself, and it increases the competition between the two retailers under the horizontal equity preference. In the adverse unfair situation, the utility of the retailer increases with the increase of the fair sensitivity coefficient, and decreases with the increase of the fair sensitivity coefficient in the favorable unfair situation. Therefore, in the case of unfair adverse circumstances, the retailer should remain humble inferiority, and should not overestimate his own abilities and status. But in the case of favorable unfair circumstances, the retailer should be confident. Only in this way can he keep the utility maximization.

Key words: horizontal equity, vertical equity, Bertrand model, supply chain, fairness sensitivity, Stackelberg model

CLC Number: 

  • F224
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