Abstract
This paper incorporates fairness concerns and consumer reference price effects into a two-echelon building-material closed-loop supply chain consisting of a manufacturer and a retailer. By establishing four differential game models, we investigate the sustainable operations and cooperation of this supply chain. The four game models are a Nash noncooperative game, Stackelberg game with cost sharing, Stackelberg game with fairness concerns and cost sharing, and centralized decision model. By using dynamic models and optimal control theory, we obtain the two members’ optimal equilibrium strategies in the supply chain. Analytical results show that the consumer reference price effect has a positive impact on the manufacturer’s effort level, retailer’s publicity level, and product brand goodwill, which can improve the supply chain performance. The retailer’s partial commitment to cost sharing can enhance the production enthusiasm of the manufacturer, improve the brand reputation of the product, and enhance the two members’ individual profitability. The distributional fairness concerns of the manufacturer not only prevent the manufacturer and retailer from achieving Pareto improvement but also lead to the decline of the manufacturer’s effort level and profitability. The research conclusions of this paper can provide some insights into the cooperation and sustainable development of the supply chain.
Highlights
With the rapid development and promotion of e-commerce, enterprises have gradually entered the era of network economy, the uncertainty of the market environment has further increased, and the competition between enterprises has transformed into competition between the supply chains where the enterprises are located
This article considers the two factors of the reference price effect and fairness concern behavior of consumers that have an important impact in the supply chain and incorporates them into the unified dynamic differential game model
We try to analyze the following questions: (1) How does the manufacturer’s fair concern behavior affect the supply chain effect? (2) Under the four different operating models, which mode can produce higher effects? (3) How does the importance of consumer reference price effects affect decision-making? From the perspective of cooperation in a supply chain consisting of only one manufacturer and one retailer, this paper takes fairness concerns and reference effects into consideration and provides some decision-making reference for promoting the long-term dynamic cooperation of supply chain members and improving overall performance
Summary
With the rapid development and promotion of e-commerce, enterprises have gradually entered the era of network economy, the uncertainty of the market environment has further increased, and the competition between enterprises has transformed into competition between the supply chains where the enterprises are located. Many scholars regard consumers as the most important influencing factor when studying the sustainable operation process of the supply chain, but they often ignore the cooperation among the companies in the supply chain. Erefore, when studying the sustainable operation of supply chain, this paper takes into account the behavior characteristics of consumers and the irrational behaviors among enterprises, such as the fairness of interest distribution, trying to analyze the following questions: (1) How does the manufacturer’s fair concern behavior affect the supply chain effect? From the perspective of cooperation in a supply chain consisting of only one Complexity manufacturer and one retailer, this paper takes fairness concerns and reference effects into consideration and provides some decision-making reference for promoting the long-term dynamic cooperation of supply chain members and improving overall performance Due to the influence of the environment and individual perceptions, the enterprise does not appear as a completely rational image. erefore, when studying the sustainable operation of supply chain, this paper takes into account the behavior characteristics of consumers and the irrational behaviors among enterprises, such as the fairness of interest distribution, trying to analyze the following questions: (1) How does the manufacturer’s fair concern behavior affect the supply chain effect? (2) Under the four different operating models, which mode can produce higher effects? (3) How does the importance of consumer reference price effects affect decision-making? From the perspective of cooperation in a supply chain consisting of only one Complexity manufacturer and one retailer, this paper takes fairness concerns and reference effects into consideration and provides some decision-making reference for promoting the long-term dynamic cooperation of supply chain members and improving overall performance
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