Advertisement

Cluster Computing

, Volume 22, Supplement 3, pp 5547–5562 | Cite as

The signaling game model under asymmetric fairness-concern information

  • Yanhong QinEmail author
  • Guangxing Wei
  • JingXin Dong
Article

Abstract

Under the wholesale price contract, we analyze the influence of the retailer’s fairness-concern information on the wholesale price, order quantity, the profit of each party and the supply chain in symmetry information (SI) condition and asymmetry information (AI) condition respectively. Then, we compute the value of retailer’s fairness-concern information to supplier, and we prove that the profit of all members and supply chain is decreasing with retailer’s fairness concern and the profit in SI condition is always higher than that in the AI condition. Then, we set the signaling game model to reveal the transmission mechanism of retailer’s fairness-concern information, and we analyze the potential separating equilibrium and pooling equilibrium existing in signaling model under asymmetric fairness-concern information. We prove that only when the signal transmission cost is different between retailers with different fairness-concern degree, the signaling model can effectively reveal the role and type of retailers. Finally, we provide some suggestions improve fairness-concern information transmission and optimize supply chain operation by discussing the condition of each separating equilibrium results.

Keywords

Fairness concern Asymmetry information Wholesale price contract Signaling game model 

Notes

Acknowledgements

The research is supported by Chinese Social Science Foundation “Contract optimization and coordination of supply chain based on social preference and its cognitive dynamic evolution” under Grant Number 16CGL017.

References

  1. 1.
    Cui, T.H., Raju, J.S., Zhang, Z.J.: Fairness and channel coordination. Manag. Sci. 53(8), 1303–1314 (2007)CrossRefGoogle Scholar
  2. 2.
    Loch, C.H., Wu, Y.Z.: Social preferences and supply chain performance: an experimental study. Manag. Sci. 54(11), 1835–1849 (2008)zbMATHCrossRefGoogle Scholar
  3. 3.
    Katok, E., Pavlov, V.: Fairness in supply chain contracts: a laboratory study. J. Oper. Manag. 31(1–2), 129–137 (2013)CrossRefGoogle Scholar
  4. 4.
    Katok, E.T., Olsen, T., Pavlov, V.: Wholesale pricing under mild and privately known concerns for fairness. Prod. Oper. Manag. 23(2), 285–302 (2014)CrossRefGoogle Scholar
  5. 5.
    Caliskan-Demirag, O., Chen, Y.H., Li, J.B.: Channel coordination under fairness concerns and nonlinear demand. Eur. J. Oper. Res. 207(3), 1321–1326 (2010)MathSciNetzbMATHCrossRefGoogle Scholar
  6. 6.
    Cachon, G.P., Lariviere, M.: Contracting to assure supply: how to share demand forecasts in a supply chain. Manag. Sci. 46(5), 629–646 (2001)zbMATHCrossRefGoogle Scholar
  7. 7.
    Ozgun, C.D., Chen, Y.H.: Jianbin, Li: Channel coordination under fairness concerns and nonlinear demand. Eur. J. Oper. Res. 207(7), 1321–1326 (2010)zbMATHGoogle Scholar
  8. 8.
    Cachon, G.P., Lariviere, M.A.: Supply chain coordination with revenue-sharing. Int. J. Prod. Econ. 97(1), 44–51 (2005)zbMATHCrossRefGoogle Scholar
  9. 9.
    Bi, G.B., Qu, A.M., Liang, L.: Supply chain coordination with wholesale price contract incorporating inequity aversion. Syst. Eng. Theory Pract. 33(1), 134–140 (2013)Google Scholar
  10. 10.
    Du, S.F., Nie, T.F., Chu, C.B., Yu, Y.G.: Reciprocal supply chain with intention. Eur. J. Oper. Res. 239(3), 389–402 (2014)MathSciNetzbMATHCrossRefGoogle Scholar
  11. 11.
    Du, S.F., Nie, T.F., Chu, C.B., Yu, Y.G.: Newsvendor model for a dyadic supply chain with Nash-bargaining fairness concerns. Int. J. Prod. Res. 52(17), 5070–5085 (2014)CrossRefGoogle Scholar
  12. 12.
    Wu, X.L., Niederhoff, J.A.: Fairness in selling to the newsvendor. Prod. Oper. Manag. 23(11), 2002–2022 (2014)CrossRefGoogle Scholar
  13. 13.
    Qin, Y.H., Wei, G.X.: The dynamic evolution analysis on fairness concern of supply chain under wholesale price contract. Forecasting 34(5), 48–54 (2015)Google Scholar
  14. 14.
    Zhang, F., Ma, J.H.: Research on the complex features about a dual-channel supply chain with a fair caring retailer. Commun. Nonlinear Sci. Numer. Simul. 30(1), 151–167 (2016)MathSciNetCrossRefGoogle Scholar
  15. 15.
    Kalkanci, B., Chen, K.Y., Erhun, F.: Contract complexity and performance under asymmetric demand information: an experimental evaluation. Manag. Sci. 57(4), 689–704 (2011)CrossRefGoogle Scholar
  16. 16.
    Michael, B.P., Katok, E., Ulrich, W.: Designing buyback contracts for irrational but predictable newsvendors. Manag. Sci. 59(8), 1800–1816 (2013)CrossRefGoogle Scholar
  17. 17.
    Ho, T.K., Su, X.M., Wu, Y.Z.: Distributional and peer induced fairness in supply chain contract design. Prod. Oper. Manag. 23(2), 161–175 (2014)CrossRefGoogle Scholar
  18. 18.
    Cao, E.B., Hou, L.M.: Research on the optimal decision of supply chain in asymmetry of fairness concern. Chin. J. Manag. 13(7), 1070–1074 (2016)Google Scholar
  19. 19.
    Qing, H.L., Li, B.L.: Dual-channel supply chain equilibrium problems regarding retail services and fairness concerns. Appl. Math. Model. 40(2), 7349–7367 (2016)MathSciNetGoogle Scholar
  20. 20.
    Qin, F., Mai, F., Fry, M.J., Raturi, A.S.: Supply-chain performance anomalies: fairness concerns under private cost information. Eur. J. Oper. Res. 252(1), 170–182 (2016)zbMATHCrossRefGoogle Scholar
  21. 21.
    Qin, Y.H., Wei, G.X.: Behavior game analysis about the evolution based on information structure of fairness concern under wholesale price contract. Ind. Eng. Manag. 20(4), 100–108 (2015)Google Scholar
  22. 22.
    Fehr, E., Schmidt, K.M.: A theory of fairness, competition, and cooperation. Q. J. Econ. 114(3), 817–868 (1999).zbMATHCrossRefGoogle Scholar
  23. 23.
    Lariviere, M.A., Porteus, E.L.: Selling to the newsvendor: an analysis of price-only contracts. Manuf. Serv. Oper. Manag. 3(4), 293–305 (2001)CrossRefGoogle Scholar
  24. 24.
    Su, X.M.: Bounded rationality in newsevendor models. Manuf. Serv. Oper. Manag. 10(4), 566–589 (2008)CrossRefGoogle Scholar
  25. 25.
    Kanning, W., Kanning, A.J.: Fairness and coordination failures in contracting. Working Paper (2015)Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2017

Authors and Affiliations

  1. 1.School of Management and EconomicsUniversity of Electronic Science and Technology of ChinaSichuanChina
  2. 2.School of ManagementChongqing University of TechnologyChongqingChina
  3. 3.School of Economics and ManagementChongqing Jiaotong UniversityChongqingChina
  4. 4.Business SchoolNewcastle UniversityNewcastle upon TyneUK

Personalised recommendations