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Abstract Considering the phenomenon that the order decision of supply chain members may deviate from the optimum leaded by loss-averse and fairness preference. The study, based on the behavioral preference, analyzes the optimal order quantity when the members take Nash bargain game by constructing a hybrid dual-channel order model with demand transfer，and the impact of retailer’s loss-averse and fairness preference on its order decision as well. The result shows that the fairness preference manufacture order quantity is larger than the rational optimal quantity，whereas the fairness preference retailer order quantity is less than the rational optimal quantity. It shows as well，when facing the fairness manufacture, the order quantity deviations of the fairness preference and loss-averse retailer are decreased with the increase of loss-averse degree, while the deviations are decreased and then increased with the increase of fairness preference degree. Moreover, the different product natures (unit profit, transfer rate, shortage cost, et al) have disproportionate impacts on the order deviation.
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Received: 12 April 2016
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2017, Vol. 14 
