IDEAS home Printed from https://ideas.repec.org/a/bpj/jossai/v7y2019i3p283-294n5.html
   My bibliography  Save this article

Optimal Decision-Making of Low-Carbon Supply Chain Incorporating Fairness Concerns

Author

Listed:
  • Wei Guangxing

    (School of Economics and Management, Chongqing Jiaotong University, Chongqing, 400074, China)

  • Yao Yanling

    (School of Economics and Management, Chongqing Jiaotong University, Chongqing, 400074, China)

  • Qin Yanhong

    (School of Management, Chongqing University of Technology, Chongqing, 400054, China)

Abstract

The optimal decision-making of the low-carbon supply chain incorporating fairness concerns, such as the effort of reducing carbon emissions, the whole sale price and retail price, is analyzed by taking the Nash bargaining solution as the fairness reference point. The following conclusions are found. Firstly, the wholesale price is strongly influenced by the fairness concern of the manufacturer but weakly influenced by that of the retailer, although both statistically significantly. Secondly, both the manufacturer’s and retailer’s fairness concerns reduce carbon emissions dramatically to nearly the same extent. Thirdly, the effect of the manufacturer’s fairness concern on the retail price is so tiny that it can almost be ignored, while the retailer’s fairness concern changes the retail price remarkably.

Suggested Citation

  • Wei Guangxing & Yao Yanling & Qin Yanhong, 2019. "Optimal Decision-Making of Low-Carbon Supply Chain Incorporating Fairness Concerns," Journal of Systems Science and Information, De Gruyter, vol. 7(3), pages 283-294, June.
    • Handle: RePEc:bpj:jossai:v:7:y:2019:i:3:p:283-294:n:5
    DOI: 10.21078/JSSI-2019-283-12
    as

    Download full text from publisher

    File URL: https://doi.org/10.21078/JSSI-2019-283-12
    Download Restriction: no
    File URL: https://libkey.io/10.21078/JSSI-2019-283-12?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    2. Jingpu Song & Mingming Leng, 2012. "Analysis of the Single-Period Problem under Carbon Emissions Policies," International Series in Operations Research & Management Science, in: Tsan-Ming Choi (ed.), Handbook of Newsvendor Problems, edition 127, chapter 0, pages 297-313, Springer.
    3. Yang, Jing & Xie, Jinxing & Deng, Xiaoxue & Xiong, Huachun, 2013. "Cooperative advertising in a distribution channel with fairness concerns," European Journal of Operational Research, Elsevier, vol. 227(2), pages 401-407.
    4. Caliskan-Demirag, Ozgun & Chen, Youhua (Frank) & Li, Jianbin, 2010. "Channel coordination under fairness concerns and nonlinear demand," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1321-1326, December.
    5. Li Xiangfei & Qin Qin & Gao Yang, 2017. "Optimal Implementation Strategy of Carbon Emission Reduction Policy Instruments in Consideration of Cost Efficiency," Journal of Systems Science and Information, De Gruyter, vol. 5(2), pages 111-127, April.
    6. Nie, Tengfei & Du, Shaofu, 2017. "Dual-fairness supply chain with quantity discount contracts," European Journal of Operational Research, Elsevier, vol. 258(2), pages 491-500.
    7. Christoph H. Loch & Yaozhong Wu, 2008. "Social Preferences and Supply Chain Performance: An Experimental Study," Management Science, INFORMS, vol. 54(11), pages 1835-1849, November.
    8. Tony Haitao Cui & Jagmohan S. Raju & Z. John Zhang, 2007. "Fairness and Channel Coordination," Management Science, INFORMS, vol. 53(8), pages 1303-1314, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Yuyan & Yu, Zhaoqing & Jin, Mingzhou & Mao, Jiafu, 2021. "Decisions and coordination of retailer-led low-carbon supply chain under altruistic preference," European Journal of Operational Research, Elsevier, vol. 293(3), pages 910-925.
    2. Ni Du & Qinglan Han, 2018. "Pricing and Service Quality Guarantee Decisions in Logistics Service Supply Chain with Fairness Concern," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(05), pages 1-41, October.
    3. Zongsheng Huang, 2020. "Stochastic Differential Game in the Closed-Loop Supply Chain with Fairness Concern Retailer," Sustainability, MDPI, vol. 12(8), pages 1-21, April.
    4. Bo Yan & Jiwen Wu & Zijie Jin & Shiyou He, 2020. "Decision-making of fresh agricultural product supply chain considering the manufacturer’s fairness concerns," 4OR, Springer, vol. 18(1), pages 91-122, March.
    5. Du, Shaofu & Nie, Tengfei & Chu, Chengbin & Yu, Yugang, 2014. "Reciprocal supply chain with intention," European Journal of Operational Research, Elsevier, vol. 239(2), pages 389-402.
    6. Đula, Ivan & Größler, Andreas, 2021. "Inequity aversion in dynamically complex supply chains," European Journal of Operational Research, Elsevier, vol. 291(1), pages 309-322.
    7. Li, Zhong-Ping & Wang, Jian-Jun & Perera, Sandun & Shi, Jim (Junmin), 2022. "Coordination of a supply chain with Nash bargaining fairness concerns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    8. Yadong Shu & Ying Dai & Zujun Ma, 2019. "Pricing Decisions in Closed-Loop Supply Chains with Peer-Induced Fairness Concerns," Sustainability, MDPI, vol. 11(18), pages 1-19, September.
    9. Yoshihara, Rikuo & Matsubayashi, Nobuo, 2021. "Channel coordination between manufacturers and competing retailers with fairness concerns," European Journal of Operational Research, Elsevier, vol. 290(2), pages 546-555.
    10. Sarkar, Sumit, 2019. "Gratitude, conscience, and reciprocity: Models of supplier motivation when quality is non-contractible," European Journal of Operational Research, Elsevier, vol. 277(2), pages 633-642.
    11. Zheng, Xiao-Xue & Liu, Zhi & Li, Kevin W. & Huang, Jun & Chen, Ji, 2019. "Cooperative game approaches to coordinating a three-echelon closed-loop supply chain with fairness concerns," International Journal of Production Economics, Elsevier, vol. 212(C), pages 92-110.
    12. Liu Shuren & Chen Huina & Chen Lili, 2016. "Inventory and Pricing Decisions Under Wholesale Price Contract with Social Preferences," Journal of Systems Science and Information, De Gruyter, vol. 4(1), pages 68-86, February.
    13. Xujin Pu & Lei Gong & Guanghua Han, 2019. "A feasible incentive contract between a manufacturer and his fairness-sensitive retailer engaged in strategic marketing efforts," Journal of Intelligent Manufacturing, Springer, vol. 30(1), pages 193-206, January.
    14. Linghong Zhang & Bowen Xue & Xiyu Liu, 2018. "Carbon Emission Reduction with Regard to Retailer’s Fairness Concern and Subsidies," Sustainability, MDPI, vol. 10(4), pages 1-28, April.
    15. Shuchen Ni & Chun Feng & Handan Gou, 2023. "Nash-Bargaining Fairness Concerns under Push and Pull Supply Chains," Mathematics, MDPI, vol. 11(23), pages 1-20, November.
    16. Xu, Hao & Chen, Liuxin & Ma, Lijun, 2024. "Supply chain product innovation and marketing strategies under different fairness concerns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    17. Messinger, Paul R., 2016. "The role of fairness in competitive supply chain relationships: An experimental studyAuthor-Name: Choi, Sungchul," European Journal of Operational Research, Elsevier, vol. 251(3), pages 798-813.
    18. Yu, Niu & Wang, Shumei & Liu, Zhixin, 2022. "Managing brand competition with consumer fairness concern via manufacturer incentive," European Journal of Operational Research, Elsevier, vol. 300(2), pages 661-675.
    19. Qingfeng Meng & Zhen Li & Jianguo Du & Huimin Liu & Xiang Ding, 2019. "Negotiation for Time Optimization in Construction Projects with Competitive and Social Welfare Preferences," Complexity, Hindawi, vol. 2019, pages 1-13, January.
    20. Li, Qingying, 2018. "The optimal multi-period modular design with fairness concerns," International Journal of Production Economics, Elsevier, vol. 206(C), pages 233-249.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jossai:v:7:y:2019:i:3:p:283-294:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.