A study on pricing decision of supply chain based on fairness concern

Hongxiong, Yang; Sun, Xiongle

doi:10.1063/1.4977358

Cited by 2 publications

(6 citation statements)

References 4 publications

(3 reference statements)

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“…(1) e manufacturer and the retailer sell the same products from two different channels on the basis of price competition, and the marginal cost of the product is c. (2) e manufacturer and the retailer can only obtain part of market information and have limited rationality in decision-making [43]. (3) Both manufacturer and the retailer consider fairness concern in the market competition [25]. (4) e retailer only considers the objective of profit maximization, while the manufacturer not only considers the goal of profit maximization but also considers the market share goal under the price strategy [13].…”

Section: Model Assumptionsmentioning

confidence: 99%

“…Q. H. Li and B. Li [24] developed a game model assuming the private fairness concern is fuzzy and obtained the estimation model by fuzzy theory. Yang and Sun [25] considered the effect of fairness concern in a closed-loop supply chain under two situations and found the result that a fair caring manufacturer or retailer would get more supply chain profits. Qin et al [26] studied the dynamic evolution of fair preference under the demand of exponential function and pointed out the retailer utility and supply chain utility are increasing with fairness in exponential demand.…”

Section: Introductionmentioning

confidence: 99%

“…Next, we examine the influence of the parameter v on the stability of the system (25). Making α 1 � 0.02 and α 2 � 0.04, Figure 12 shows the bifurcation diagram and entropy with the change of v, the controlled system (25) goes to the stable Complexity state from the chaotic state with increasing v, and entropy of the controlled system (25) becomes smaller as the system's instability decreases.…”

mentioning

confidence: 99%

“…Making α 1 � 0.02 and α 2 � 0.04, Figure 12 shows the bifurcation diagram and entropy with the change of v, the controlled system (25) goes to the stable Complexity state from the chaotic state with increasing v, and entropy of the controlled system (25) becomes smaller as the system's instability decreases. In Figure 13(a), when v � 0.2 is fixed, the system vibrates in a two-period orbit; then adjusting the parameter v � 0.38 (see in Figure 13(b)), the wave plot of prices remains at the determined value and the controlled system (25) returns to the stable state. From Figure 12, it is seen that the control parameter v will affect the Stackelberg equilibrium value of the controlled system (25), so the manufacturer and retailer should make a good balance between the system's stability and profit maximization.…”

mentioning

confidence: 99%

“…In Figure 13(a), when v � 0.2 is fixed, the system vibrates in a two-period orbit; then adjusting the parameter v � 0.38 (see in Figure 13(b)), the wave plot of prices remains at the determined value and the controlled system (25) returns to the stable state. From Figure 12, it is seen that the control parameter v will affect the Stackelberg equilibrium value of the controlled system (25), so the manufacturer and retailer should make a good balance between the system's stability and profit maximization.…”

mentioning

confidence: 99%

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The Impacts of Fairness Concern and Different Business Objectives on the Complexity of Dual-Channel Value Chains

Zhang

Huang

2020

Complexity

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is paper considers a Stackelberg game model in a dual-channel supply chain, which is composed of a manufacturer and a retailer. e manufacturer and retailer consider fairness concern in the market competition, and the manufacturer takes market share and profit as his/her business objectives. e entropy complexity and dynamic characteristic of the dual-channel system are analyzed through mathematical analysis and numerical simulation, such as local stability, bifurcation, entropy, and chaos. e results show that, with the increase of price adjustment speed, the dual-channel supply chain is more complex and falls into a chaotic state in which system entropy increases; the stability of the dual-channel supply chain will be robust with the increase of weight of market share and weaken with the increase of the fairness concern level of the manufacturer and retailer. e high level of fairness concern of the manufacturer and retailer is always disadvantageous to the leading manufacturer but not always bad for the follower retailer. e performance of the dual-channel supply chain is improved with a high level of the manufacturer's fairness concern and reduced with a high level of the retailer's fairness concern. We also find the retailer will gain more profits in the chaotic state than the stable state in the Stackelberg game model. e variable feedback control method is applied to control the chaos of the dual-channel supply chain, and choosing appropriate control parameters can make the dual-channel supply chain system return to the stable state from the chaotic state, or delay the system to enter the bifurcation state. e research results can provide a guideline for enterprise decision-making.

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Section: Model Assumptionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

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The Impacts of Fairness Concern and Different Business Objectives on the Complexity of Dual-Channel Value Chains

Zhang

Huang

2020

Complexity

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The Complexity Analysis for Price Game Model of Risk‐Averse Supply Chain Considering Fairness Concern

Huang

Zhang

2018

Complexity

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This paper, considering risk aversion and fair concern, establishes a dynamic price game model of a dual-channel supply chain in which dual-channel retailer sells products through traditional channel and online channel and the online retailer only sells products through online channel. The stability of the system and the influences of different parameter values on utilities are analyzed emphatically using game theory and nonlinear dynamic theory, such as 2D and 3D bifurcation diagram, parameter plot basin, chaos attractor, and sensitivity to initial value. The results find that the system is more likely to lose stability and fall into chaos with the customer demand fluctuating greatly. The system enters into chaos through flip bifurcation with the increase of the price adjustment speed; adjusting the risk-aversion levels or the fairness concern levels of the two retailers can make the system be in a stable state or delay the occurrence of system instability. When the system is in chaos, the average utility of the online retailer will decrease and one of the dual-channel retailers will increase. Using the state feedback control method, the system can return to a stable state from chaos by selecting appropriate control parameters. The research of this paper is of great significance to the decision-makers’ price decision and supply chain operation management.

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A study on pricing decision of supply chain based on fairness concern

Cited by 2 publications

References 4 publications

The Impacts of Fairness Concern and Different Business Objectives on the Complexity of Dual-Channel Value Chains

The Impacts of Fairness Concern and Different Business Objectives on the Complexity of Dual-Channel Value Chains

The Complexity Analysis for Price Game Model of Risk‐Averse Supply Chain Considering Fairness Concern

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