Research on the Coordination of a Dual-channel Supply Chain Considering Fairness Concern

With considering the retailer' fairness concern, the coordination of a dual-channel supply chain is researched. This paper develops a model of Stackelberg game between the manufacturer and the retailer, introducing the revenue sharing contract to coordinate the dual-channel supply chain. The impact of the retailer's fairness concern on both sides of decisions is analyzed. It is concluded that, revenue sharing contract can coordinate the supply chain. Finally, the results show that the retailer's fairness concern is beneficial to improve its own utility, but it damages the profits of manufacturer.