Ordering and Pricing Strategies in a Two-Echelon Supply Chain Considering Loss-Averse and Fairness-Concerns

摘要

Expected utility of loss-averse and fairness-concerns proposed to retailer, objective function of maximizing expected profit is suggested to neutral manufacturer. This paper investigates retailer's optimal ordering strategy and manufacturer's optimal pricing strategy based upon games models, following conclusions are drawn by theoretical and numerical analysis, order quantity decreases in loss-averse coefficient and fairness-concerns coefficient. Wholesale price decreases in loss-averse coefficient, increases in fairness-concerns coefficient, which show that loss-averse plays the same effect on ordering and pricing strategy for retailer and manufacturer respectively. but fairness-concerns gives different result for them.