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| Research on the Optimal Decision of Supply Chain in Asymmetry of Fairness Concern |
| CAO Erbao，HOU Limei |
| 1. Hunan University, Changsha, China; 2. Hunan Province Key Laboratory of Logistics Information and Simulation Technology, Changsha, China |
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Abstract This study investigates the influence of fairness concern information on the optimal decision of supply chain based on Principal-agent theory, considering the retailer’s fairness concern is its private information and unknown for the manufacturer. Results show that the retailer’s optimal order quantity and utility decrease with the increase of the retailer’s fairness concern while the manufacturer’s expected profit decreases with the increase of the retailer’s fairness concern or the retailer’s reservation utility, while the optimal order quantity is independent of the retailer’s fairness concern and the retailer only gains the reservation utility and the manufacturer’s expected profit is not relevant to fairness concern under symmetric information case.
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Received: 02 November 2015
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2016, Vol. 13 
