IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v16y2019i11p1978-d237048.html
   My bibliography  Save this article

A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors

Author

Listed:
  • Qiuxiang Li

    (Institute of management science and engineering, Henan University, Kaifeng 475004, China)

  • Mengnan Shi

    (Business School, Henan University, Kaifeng 475004, China)

  • Yimin Huang

    (School of Management & Economics, North China University of Water Resources and Electric Power, Zhengzhou 450046, China)

Abstract

In this paper, we developed a dynamic price game model for a low-carbon, closed-loop supply chain system in which (1) the manufacturer had fairness concern and carbon emission reduction (CER) behaviors, and market share and profit maximization were their objectives, and (2) the retailer showed fairness concern behaviors in market competition and provided service input to reduce return rates. The retailer recycled old products from customers, and the manufacturer remanufactured the recycled old products. The effects of different parameter values on the stability and utility of the dynamic price game model were determined through analysis and numerical simulation. Results found that an increasing customer loyalty to the direct marketing channel decreased the stable region of the manufacturer’s price adjustment and increase that of the retailer. The stable region of the system shrank with an increase of CER and the retailer’s service level, which expanded with return rates. The dynamic system entered into chaos through flip bifurcation with the increase of price adjustment speed. In the chaotic state, the average utilities of the manufacturer and retailer all declined, while that of the retailer declined even more. Changes to parameter values had a great impact on the utilities of the manufacturer and retailer. By selecting appropriate control parameters, the dynamic system can return to a stable state from chaos again. The research of this paper is of great significance to participants’ price decision-making and supply chain operation management.

Suggested Citation

  • Qiuxiang Li & Mengnan Shi & Yimin Huang, 2019. "A Dynamic Price Game Model in a Low-Carbon, Closed-Loop Supply Chain Considering Return Rates and Fairness Concern Behaviors," IJERPH, MDPI, vol. 16(11), pages 1-21, June.
    • Handle: RePEc:gam:jijerp:v:16:y:2019:i:11:p:1978-:d:237048
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/16/11/1978/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/16/11/1978/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bisheng Du & Qing Liu & Guiping Li, 2017. "Coordinating Leader-Follower Supply Chain with Sustainable Green Technology Innovation on Their Fairness Concerns," IJERPH, MDPI, vol. 14(11), pages 1-23, November.
    2. Keith J. Crocker & Paolo Letizia, 2014. "Optimal Policies for Recovering the Value of Consumer Returns," Production and Operations Management, Production and Operations Management Society, vol. 23(10), pages 1667-1680, October.
    3. Yuyan Wang & Zhaoqing Yu & Liang Shen, 2019. "Study on the decision-making and coordination of an e-commerce supply chain with manufacturer fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 57(9), pages 2788-2808, May.
    4. Yanyan Zheng & Tong Shu & Shouyang Wang & Shou Chen & Kin Keung Lai & Lu Gan, 2018. "Analysis of product return rate and price competition in two supply chains," Operational Research, Springer, vol. 18(2), pages 469-496, July.
    5. Baozhuang Niu & Qinquan Cui & Jie Zhang, 2017. "Impact of channel power and fairness concern on supplier’s market entry decision," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(12), pages 1570-1581, December.
    6. Peng Ma & Kevin W. Li & Zhou-Jing Wang, 2017. "Pricing decisions in closed-loop supply chains with marketing effort and fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 55(22), pages 6710-6731, November.
    7. Zhi Liu & Xiao-Xue Zheng & Ben-Gang Gong & Yun-Miao Gui, 2017. "Joint Decision-Making and the Coordination of a Sustainable Supply Chain in the Context of Carbon Tax Regulation and Fairness Concerns," IJERPH, MDPI, vol. 14(12), pages 1-20, November.
    8. Ramanathan, Ramakrishnan, 2011. "An empirical analysis on the influence of risk on relationships between handling of product returns and customer loyalty in E-commerce," International Journal of Production Economics, Elsevier, vol. 130(2), pages 255-261, April.
    9. Hołyst, Janusz A & Urbanowicz, Krzysztof, 2000. "Chaos control in economical model by time-delayed feedback method," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 287(3), pages 587-598.
    10. A. Matsumoto, 2006. "Controlling the Cournot-Nash Chaos," Journal of Optimization Theory and Applications, Springer, vol. 128(2), pages 379-392, February.
    11. Yang, Lei & Zhang, Qin & Ji, Jingna, 2017. "Pricing and carbon emission reduction decisions in supply chains with vertical and horizontal cooperation," International Journal of Production Economics, Elsevier, vol. 191(C), pages 286-297.
    12. Zhang, Suyong & Wang, Chuanxu & Yu, Chao, 2019. "The evolutionary game analysis and simulation with system dynamics of manufacturer's emissions abatement behavior under cap-and-trade regulation," Applied Mathematics and Computation, Elsevier, vol. 355(C), pages 343-355.
    13. Yan, Ruiliang & Pei, Zhi, 2011. "Information asymmetry, pricing strategy and firm's performance in the retailer- multi-channel manufacturer supply chain," Journal of Business Research, Elsevier, vol. 64(4), pages 377-384, April.
    14. Hui Li & Chuanxu Wang & Meng Shang & Wei Ou, 2017. "Pricing, Carbon Emission Reduction, Low-Carbon Promotion and Returning Decision in a Closed-Loop Supply Chain under Vertical and Horizontal Cooperation," IJERPH, MDPI, vol. 14(11), pages 1-26, November.
    15. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiaogang Cao & Meiting Hu & Hui Wen & Kai Huang, 2024. "Green supply chain decision-making and coordination considering consumer's environmental mindset and fairness concerns in the context of sustainable development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28485-28517, November.
    2. Yanhong Qin & Shaojie Wang & Neng Gao, 2022. "Coordination Mechanism of E-Closed-Loop Supply Chain under Social Preference," Sustainability, MDPI, vol. 14(20), pages 1-28, October.
    3. Yanhong Hou & Fan Wang & Zhitong Chen & Victor Shi, 2020. "Coordination of a Dual-Channel Pharmaceutical Supply Chain Based on the Susceptible-Infected-Susceptible Epidemic Model," IJERPH, MDPI, vol. 17(9), pages 1-16, May.
    4. Chen, Jianxin & Hou, Rui & Xiao, Lu & Zhang, Tonghua & Zhou, Yongwu, 2023. "Dynamic corporate social responsibility adjustment strategies of a closed-loop supply chain with fairness concerns and supply chain financing," Chaos, Solitons & Fractals, Elsevier, vol. 168(C).
    5. Lei Xie & Hongshuai Han, 2020. "Capacity Sharing and Capacity Investment of Environment-Friendly Manufacturing: Strategy Selection and Performance Analysis," IJERPH, MDPI, vol. 17(16), pages 1-20, August.

    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. Qiuxiang Li & Xingli Chen & Yimin Huang, 2019. "The Stability and Complexity Analysis of a Low-Carbon Supply Chain Considering Fairness Concern Behavior and Sales Service," IJERPH, MDPI, vol. 16(15), pages 1-21, July.
    2. 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).
    3. Hui Huang & Juan Zhang & Xuan Ren & Xiang Zhou, 2018. "Greenness and Pricing Decisions of Cooperative Supply Chains Considering Altruistic Preferences," IJERPH, MDPI, vol. 16(1), pages 1-31, December.
    4. Daozhi Zhao & Jiaqin Hao & Cejun Cao & Hongshuai Han, 2019. "Evolutionary Game Analysis of Three-Player for Low-Carbon Production Capacity Sharing," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    5. Dong‐dong Wang & Kangzhou Wang, 2022. "Evolutionary game analysis of low‐carbon effort decisions in the supply chain considering fairness concerns," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1224-1239, July.
    6. Duong, Quang Huy & Zhou, Li & Meng, Meng & Nguyen, Truong Van & Ieromonachou, Petros & Nguyen, Duy Tiep, 2022. "Understanding product returns: A systematic literature review using machine learning and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 243(C).
    7. Chen, Jianxin & Hou, Rui & Xiao, Lu & Zhang, Tonghua & Zhou, Yongwu, 2023. "Dynamic corporate social responsibility adjustment strategies of a closed-loop supply chain with fairness concerns and supply chain financing," Chaos, Solitons & Fractals, Elsevier, vol. 168(C).
    8. T. M. Rofin & Biswajit Mahanty, 2018. "Optimal dual-channel supply chain configuration for product categories with different customer preference of online channel," Electronic Commerce Research, Springer, vol. 18(3), pages 507-536, September.
    9. Hao Zou & Jin Qin & Xiaofeng Long, 2022. "Coordination Decisions for a Low-Carbon Supply Chain Considering Risk Aversion under Carbon Quota Policy," IJERPH, MDPI, vol. 19(5), pages 1-24, February.
    10. Hui Li & Rou Li & Meng Shang & Yu Liu & Dandan Su, 2022. "Cooperative decisions of competitive supply chains considering carbon trading mechanism [Competing manufacturers in a retail supply chain: on contractual form and coordination]," International Journal of Low-Carbon Technologies, Oxford University Press, vol. 17, pages 571-589.
    11. Liang Shen & Fei Lin & Yuyan Wang & Xin Su & Hua Li & Rui Zhou, 2022. "Advertising Decisions of Platform Supply Chains Considering Network Externalities and Fairness Concerns," Mathematics, MDPI, vol. 10(13), pages 1-21, July.
    12. Genhasi Ge & Daoping Wang & Mesumbe Bianca Epede, 2022. "Pricing Policies of Green Dual-Channel Supply Chain with Fairness Concerns and Altruistic Preferences Based on Consumers’ Environmental Awareness and Channel Preference," IJERPH, MDPI, vol. 19(20), pages 1-28, October.
    13. Junhai Ma & Lijian Sun & Xueli Zhan, 2017. "Study on Triopoly Dynamic Game Model Based on Different Demand Forecast Methods in the Market," Complexity, Hindawi, vol. 2017, pages 1-12, July.
    14. 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.
    15. Sarkar, Sumit & Bhala, Shrey, 2021. "Coordinating a closed loop supply chain with fairness concern by a constant wholesale price contract," European Journal of Operational Research, Elsevier, vol. 295(1), pages 140-156.
    16. Hao Zou & Jin Qin & Bo Dai, 2021. "Optimal Pricing Decisions for a Low-Carbon Supply Chain Considering Fairness Concern under Carbon Quota Policy," IJERPH, MDPI, vol. 18(2), pages 1-21, January.
    17. Deng Li & Ying Peng & Chunxiang Guo & Ruwen Tan, 2019. "Pricing Strategy of Construction and Demolition Waste Considering Retailer Fairness Concerns under a Governmental Regulation Environment," IJERPH, MDPI, vol. 16(20), pages 1-24, October.
    18. OĞUZ Suzan & YAŞAR DİNÇER Fatma Cande & YİRMİBEŞOĞLU Gözde, 2022. "E-Commerce In Eu Countries And Turkey: An Econometric Analysis," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(3), pages 152-161, December.
    19. Karimi, Majid & Zaerpour, Nima, 2022. "Put your money where your forecast is: Supply chain collaborative forecasting with cost-function-based prediction markets," European Journal of Operational Research, Elsevier, vol. 300(3), pages 1035-1049.
    20. Donghui Yang & Yan Wang & Shue Mei, 2021. "How to balance online healthcare platforms and offline systems? A supply chain management perspective," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 502-515, March.

    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:gam:jijerp:v:16:y:2019:i:11:p:1978-:d:237048. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.