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

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  • 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 date: 2020-01-04

  Revised date: 2020-07-05

  Online published: 2021-09-26

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.

Cite this article

Chun-Fa Li, Xue-Qing Guo, Dong-Lei Du . Pricing Decisions in Dual-Channel Closed-Loop Supply Chain Under Retailer's Risk Aversion and Fairness Concerns[J]. Journal of the Operations Research Society of China, 2021 , 9(3) : 641 -657 . DOI: 10.1007/s40305-020-00324-7

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