Abstract:

The price strategies of the closed-loop supply chain for considering fairness concerns behavior were studied, and two different price models were constructed under two different situations in which the manufacturer considers retailer’s behavior of fairness concerns or the manufacturer doesn’t consider retailer’s behavior of fairness concerns. The price models were analyzed by game theory. The results shows that the retailer’s fairness concerns behavior tendencies affect the price strategies and profit of the retailer and manufacturer, and the recycling quantity of waste products. The manufacturer makes more benefits when he considers the retailer’s behavior of fairness concerns than he doesn’t, which will increase the amount of recycling waste products of the closed-loop supply chain system, and will be beneficial to resource recycling and environmental protection. At the same time, it is found that the behavior of fairness concerns is an effective means for retailer to obtain the gains distribution of the closed-loop supply chain.

Key words: closed-loop supply chain; fairness concerns; stackelberg game; pricing strategy