This paper studies the performance of wholesale pricing when the supply chain partners have fairness concerns. We extend the existing literature by providing a formal analysis of a model in which preferences for fairness are private information of the players. We find that wholesale pricing proves rather robust to the information regime. Many of its properties established under complete information directly carry over to incomplete information. Most interestingly, incomplete information does not imply rejections. That is, in equilibrium, the retailer order quantity is above zero. We also show that incomplete information can have a detrimental impact on efficiency.
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