The optimal decision-making of the low-carbon supply chain incorporating fairness concerns, such as the effort of reducing carbon emissions, the whole sale price and retail price, is analyzed by taking the Nash bargaining solution as the fairness reference point. The following conclusions are found. Firstly, the wholesale price is strongly influenced by the fairness concern of the manufacturer but weakly influenced by that of the retailer, although both statistically significantly. Secondly, both the manufacturer's and retailer's fairness concerns reduce carbon emissions dramatically to nearly the same extent. Thirdly, the effect of the manufacturer's fairness concern on the retail price is so tiny that it can almost be ignored, while the retailer's fairness concern changes the retail price remarkably.
Michel L, Jasmin B, Guido B F. Targeting consumers who are willing to pay more for environmentally friendly products. Journal of Consumer Marketing, 2001, 18(6):503-520.
Saif B, Li Y Z, Mark D. Carbon footprint and the management of supply chains:Insights from simple models. IEEE Transactions on Automation Science & Engineering, 2013, 10(1):99-116.
Zhang J J, Nie T F, Du S F. Optimal emission-dependent production policy with stochastic demand. International Journal of Society Systems Science, 2011, 3(1):21-39.
Mohamad Y J, Christoph H G, Ahmed M A. Supply chain coordination with emissions reduction incentives. International Journal of Production Research, 2013, 51(1):9-82.
Song J P, Leng M M. Analysis of the single-period problem under carbon emissions policies. Handbook of Newsvendor Problems, the series International Series in Operations Research & Management Science, 2012, 176:297-313.
Xie X P, Zhao D Z, Liu Y J. Revrnue sharing consignment contract of low-carbon supply chain with carbon-emission sensitive demand. Journal of Systems & Management, 2015, 24(1):107-115.
Liu X D, Wang Q. An optimal emission mechanism of sustainability of China:How to achieve a win-win solution between economy and environment? Journal of Systems Science and Information, 2016, 4(6):534-546.
Li J, Shu Q, Ma L. Carbon trading model on supply chain under carbon emissions constraint. Chinese Journal of Management Science, 2016, 24(10):54-63.
Li X F, Qin Q, Gao Y. Optimal implementation strategy of carbon emission reduction policy instruments in consideration of cost efficiency. Journal of Systems Science and Information, 2017, 5(2):111-127.
Christoph H L, Wu Y Z. Social preferences and supply chain performance:An experimental study. Management Science, 2008, 54(11):1835-1849.
Elena K, Valery P. Fairness in supply chain contracts:A laboratory study. Journal of Operations Management, 2014, 31(2):129-137.
Choi S, Messinger P R. The role of fairness in competitive supply chain relationships:An experimental study. European Journal of Operational Research, 2016, 251(1):798-813.
Cui T H T, Raju J S, Zhang J. Fairness and channel coordination. Management Science, 2007, 53(8):1303-1314.
Ozgun C D, Chen Y H, Li J B. Channel coordination under fairness concerns and nonlinear demand. European Journal of Operational Research, 2010, 207(4):1321-1326.
Yang J, Xie J X, Deng X X, et al. Cooperative advertising in a distribution channel with fairness concerns. European Journal of Operational Research. 2013, 227(2):401-407.
Teck H, Su X M, Wu Y Z. Distributional and peer induced fairness in supply chain contract design. Production and Operations Management, 2014, 23(2):161-175.
Chen J L, Zhao X B, Shen Z J. Risk mitigation benefit from backup suppliers in the presence of the horizontal fairness concern. Decision Sciences, 2015, 46(4):663-696.
Zhang F, Ma J H. Research on the complex features about a dual-channel supply chain with a fair caring retailer. Communications in Nonlinear Science and Numerical Simulation, 2016, 30(1):151-167.
Nie T F, Du S F. Dual-fairness supply chain with quantity discount contracts. European Journal of Operational Research, 2017, 258(1):491-500.
Li Y, Zhao D Z. Low-carbon Supply chain coordination with contracts considering fairness concerns. Journal of Industrial Engineering & Engineering Management, 2015, 29(1):156-161.
Zhou Y J, Bao M J, Chen X H, et al. Co-op advertising and emission reduction cost sharing contracts and coordination in low-carbon supply chain based on fairness concerns. Journal of Cleaner Production, 2016, 133(3):402-413.
Fehr E, Schmidt K M. A theory of fairness, competition and cooperation. Quarterly Journal of Economics, 1999, 114(1):817-868.
Du S F, Nie T F, Chu C B, et al. Newsvendor model for a dyadic supply chain with Nash bargaining fairness concerns. International Journal of Production Research, 2014, 52(9):5070-5085.