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| Content Provider | IEEE Xplore Digital Library |
|---|---|
| Author | Jianbin Li Xiaoshuai Fan Bin Dai |
| Copyright Year | 2015 |
| Description | Author affiliation: Sch. of Manage., Huazhong Univ. of Sci. & Technol., Wuhan, China (Jianbin Li; Xiaoshuai Fan) || Econ. & Manage. Sch., Wuhan Univ., Wuhan, China (Bin Dai) |
| Abstract | Suppliers often use contract mechanism to mitigate double marginalization and improve the supply chain's performance. In this study, by considering both loss aversion and extra-gain guilty, we focus on the members' fairness concerns in the contract design, and analyze the influence of fairness concerns on supply chain's profit and profit distribution. We study a one-supplier and two-retailer supply chain setting in which the supplier makes contacts with retailers in sequence based on first-come-first-service principle. Thus, the first retailer exhibit distributional fairness when his supplier's share of total profit is different from his own. The second retailer exhibits distributional fairness and peer-induced fairness when the first retailer's profit is different from his own. Our analysis reveals that the supply chain performance can be further improved by considering extra-gain guilty; the second retailer is likely to have a higher retail price given that the supplier offers the same wholesale price to both retailers, and the second retailer has a lower profit than that of the first retailer when considering the loss aversion with extra-gain guilty. |
| Starting Page | 1 |
| Ending Page | 6 |
| File Size | 387400 |
| Page Count | 6 |
| File Format | |
| e-ISBN | 9781479983285 |
| DOI | 10.1109/ICSSSM.2015.7170327 |
| Language | English |
| Publisher | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Publisher Date | 2015-06-22 |
| Publisher Place | China |
| Access Restriction | Subscribed |
| Rights Holder | Institute of Electrical and Electronics Engineers, Inc. (IEEE) |
| Subject Keyword | contract design extra-gain guilty Supply chains Decision making Psychology loss aversion Market research Mathematical model Contracts Fairness |
| Content Type | Text |
| Resource Type | Article |
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