Pricing Mechanism Of Fairness Concerns In The Closed-loop Supply Chain

As awareness of environmental protection and sustainable development enhanced,more and more countries and companies starting to pay attention to cycle product reuse. Atthe same time closed-loop supply chain management has increasingly become a hot issueconcerns the theory and the business community, considering its role in sustainabledevelopment and environmental protection has become increasingly prominent, by themanufacturers, retailers and consumers of the closed-loop supply chain each node has animpact on other nodes, how to make a reasonable price is a key factor in the variousstakeholders to maximize profits. Therefore it is necessary to consider the impact factors ofclosed-loop supply chain to help decision-makers to develop a reasonable pricing strategy topromote economic and social development of the dual.Studies of the supply chain has been widespread concern in the industry scholars,traditional supply chain research was largely based on the assumption that fully rationaldecision makers, however, the structure of the complex real world, there are manyuncertainties, people are often bounded rationality. Behavioral studies have found that peopletend to have a strong desire to pursue fair, they feel unfair, preferring to sacrifice somepersonal interests to punish each other, this is a fair concern behavioral tendencies, manyexperiments have confirmed the existence of this behavioral tendencies.For consider behavioral tendencies of the closed-loop supply chain research at home andabroad is still at a preliminary stage, the relevant proposals and research results have yet toform an effective system. For further consider fair concern the supply chain behavioraltendencies related research is even more rare, so this paper based on the theory of Nashbargaining fairness concern, through modeling and analyzing, we explore that retailers have relatively fair concern, as well as manufacturers and retailers taking into account relativefairness concern’s pricing mechanism in the closed-loop supply chain and verified withnumerical analysis. Research shows that the behavior of fairness concerns is an effectivemeans for retailers and manufacturers as a means to obtain the channel distribution of gains,and this relative fairness preference to produce a certain influence on the optimal pricingdecisions of the members of the closed-loop supply chain system as well as closed-loopsupply chain system profits.