Research on decision-making of low-carbon supply chain under two-way fairness concerns

WANG Jing; GE Tongtong; SI Fengshan

Abstract：This research focuses on the impact of the two-way fairness concern behavior of manufacturers and retailers in a retailer's dual-channel supply chain on carbon reduction efficiency and optimal pricing under the background of carbon emission policies.Three models,namely the centralized decision-making model,the fairness-neutral decentralized decision-making model,and the two-way fairness concern decentralized decision-making model,are studied.Comparative analysis and numerical simulation are carried out.The research shows that the two-way fairness concern behavior reduces the carbon reduction efficiency,and the retailer's fairness concern has a more significant impact on it.The manufacturer's fairness concern prompts the wholesale price to rise,while the retailer's fairness concern leads to a decrease in the wholesale price.The fairness concerns of both parties cause the retail price to increase,which harms the interests of consumers.The manufacturer's fairness concern increases its own profit and reduces the retailer's profit,while the retailer's fairness concern leads to a decrease in the profits of both parties.As the carbon trading price rises,the wholesale price and the carbon reduction rate increase accordingly,the retailer's profit decreases,and the manufacturer's profit is jointly restricted by the carbon quota and the carbon trading price.