Participant fairness concern and cost‐sharing‐based dual‐channel low‐carbon supply chain management

Abstract

Considering consumer channel preferences, our paper establishes a two‐echelon differential low‐carbon supply chain model and discusses the effects of member's cost‐sharing and fairness concerns on equilibrium results. From a static perspective, the results indicate that retailers' fairness concern behavior will lead to a decrease in pricing and participants' efforts while manufacturers cost‐sharing strategy will only enhance retailers' advertising efforts. From a dynamic perspective, products' greenness, long‐term benefits of manufacturers and retailers, and social welfare will gradually increase and eventually saturate over time. In most cases, manufacturer‐to‐retailer cost‐sharing is a win–win strategy that not only enhances the long‐term interests but also realizes the greening and upgrading of the supply chain.