Journal of the Operations Research Society of China ›› 2021, Vol. 9 ›› Issue (3): 641-657.doi: 10.1007/s40305-020-00324-7

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Pricing Decisions in Dual-Channel Closed-Loop Supply Chain Under Retailer's Risk Aversion and Fairness Concerns

Chun-Fa Li1, Xue-Qing Guo1, Dong-Lei Du2   

  1. 1 Department of Management, Tianjin University of Technology, Tianjin 300384, China;
    2 Faculty of Management, University of New Brunswick, Fredericton, NB E3B 5A3, Canada
  • Received:2020-01-04 Revised:2020-07-05 Online:2021-09-30 Published:2021-09-26
  • Contact: Xue-Qing Guo,sakura_yuki23@163.com;Chun-Fa Li,chunfali@163.com;Dong-Lei Du,ddu@unb.ca E-mail:sakura_yuki23@163.com;chunfali@163.com;ddu@unb.ca
  • Supported by:
    The first author's research is supported by the National Social Science Fund of China (No. 18BJY009). The third author's research is supported by the Natural Sciences and Engineering Research Council of Canada (No. 06446) and the National Natural Science Foundation of China (Nos. 11771386 and 11728104).

Abstract: This paper studies the price decisions in a dual-channel closed-loop supply chain with a risk-averse retailer and a risk-neutral manufacturer by modeling and analyzing three cases:(1) the retailer does not have fairness concerns; (2) the retailer has fairness concerns and the manufacturer considers it; and (3) the retailer has fairness concerns and the manufacturer does not consider it. The effects of risk aversion and fairness concerns on the pricing decisions, profits and demand are examined in differing scenarios.

Key words: Risk aversion, Fairness concerns, Dual-channel, Closed-loop supply chain

CLC Number: