Abstract
In the same model, both distributional fairness concern and peer-induced fairness concern are considered, so are the absolute fairness concern and the relative fairness concern. When there are multiple recycling markets, collectors attach importance not only to the fairness distribution of profit with the manufacturer (distributional fairness concern), but also to the fairness distribution of profit with the peer collector (peer-induced fairness concern). On the basis of the perspective of the collectors, this article introduces distributional and peer-induced fairness concern into the closed-loop supply chain (CLSC). The impact of the collectors' different fairness concerns on the CLSC pricing decisions is discussed under five models.The research shows that: (1) When the manufacturer considers the collectors' fairness concern, the manufacturer's profit and distributional fairness concern coefficient change inversely, and the collectors' profit and distributional fairness concern coefficient move together, that is, the distributional fairness concern is of advantage to the collectors but not good for the manufacturer. On the contrary, the manufacturer's profit and peer-induced fairness concern coefficient move in the same direction, while the profit of the collectors and peer-induced fairness concern coefficient change in opposite direction; (2) As long as the manufacturer considers the fairness of the collectors, the profit of the collector who pays attention to both fairness is always lower than that of the collector who only concerns distributional fairness, so peer-induced fairness concern is not a self-interest behavior. However, when the appeal of the two collectors for fairness distribution is not considered by the manufacturer, peer-induced fairness concern benefits himself; (3) The two-part Tariff contract has realized the coordination of the CLSC. Additionally, our findings provide some managerial insights on the pricing decision when the collectors consider multiple fairness concerns.
Highlights
People’s longing for a better life is always subject to a worse and worse living environment, and the various walks of life have gradually realized the significance of the environment for sustainable development, which requires closed-loop supply chain (CLSC) managers to shift part of their energy from the original forward sales channel to the reverse channel responsible for the recycling of used products so as to perform
It is more theoretical and practical to carry out peer-induced fairness concern to the influence of decision-making of the CLSC
(2) The manufacturer pays attention to the distributional fairness of collectors, which will reduce his profit, but because collector T2 pays attention to peer-induced fairness, which always make himself in a passive position, the profit of the remanufactured part of the manufacturer increases with the increase of the peer-induced fairness concern coefficient
Summary
People’s longing for a better life is always subject to a worse and worse living environment, and the various walks of life have gradually realized the significance of the environment for sustainable development, which requires closed-loop supply chain (CLSC) managers to shift part of their energy from the original forward sales channel to the reverse channel responsible for the recycling of used products so as to perform. Given the pressure of laws and regulations and the profitability of recycling activities, collectors play an increasingly pivotal role in the CLSC, and their pricing decisions will inevitably cause changes in the equilibrium solution of the CLSC. It is more theoretical and practical to carry out peer-induced fairness concern to the influence of decision-making of the CLSC. Based on the research needs of this article, assuming that the market information is symmetrical, the domestic market collector will pay attention to both the fairness of profit distribution with Nine Dragons Paper and the fairness of profit distribution with the collector from foreign counterparts. To investigate the influence of fairness concern of collectors on decisions of the CLSC, this article concentrates on a CLSC composed of one manufacturer, one retailer and two collectors. The last part provides the numerical analyses and summarizes the conclusions
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