Abstract
This paper sets Stackelberg model of bilateral quality efforts decision dominated by supermarket in the agricultural products supply chain by considering fairness concern and altruistic reciprocity. We use backward induction method to compute and prove that A3P’ fairness concern can play the role of profit distribution mechanism in agricultural products supply chain, and has no effect on the bilateral quality efforts decision, total profit of supply chain and objective efficiency, but can improve both the subjective and objective fairness degree. Meanwhile, supermarket’s altruistic reciprocity can improve the total quality efforts and total profit of supply chain, optimize the objective efficiency and subjective fairness of supply chain.
Highlights
With the rapid economic and social development and the continuous improvement of living standard, consumer’s demand for agricultural products has shifted from availability and diversity to safety and quality (Sun et al, 2008; Wang, 2018)
An important reason for the quality of agricultural products is that some supply chain members perceive the unfair distribution of channel profit and make decision that may impair the quality of agricultural products, so the fairness concern is very important for the supply chain operation (Zheng and Zhang, 2012; Chen et al, 2014)
For the fairness concern and altruistic reciprocity is the most important and popular type of social preference, and we focus on the effect of fairness concern and altruistic reciprocity on the bilateral quality efforts decision
Summary
With the rapid economic and social development and the continuous improvement of living standard, consumer’s demand for agricultural products has shifted from availability and diversity to safety and quality (Sun et al, 2008; Wang, 2018). An important reason for the quality of agricultural products is that some supply chain members perceive the unfair distribution of channel profit and make decision that may impair the quality of agricultural products, so the fairness concern is very important for the supply chain operation (Zheng and Zhang, 2012; Chen et al, 2014). We set the comparative model by considering the A3P’s fairness concern and supermarket’s altruistic reciprocity respectively, and study the compact of social preference on bilateral quality efforts decision, profit, efficiency and fairness of agricultural products supply chain. Our contribution lies in three aspects: Firstly, most of traditional research on quality control focused on the unilateral quality efforts of agricultural products supply chain, i.e. only from the supplier or seller respectively, but we study the bilateral quality improvement mechanism. We proposed the efficiency and fairness of agricultural products supply chain, which can be used to measure the performance of agricultural products supply chain
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