Participant fairness concern and cost-sharing-based dual-channel low-carbon supply chain management

Abstract

Considering consumer channel preferences, our paper establishes a two-echelon differential low-carbon supply chain model and discusses the effects of member's cost-sharing and fairness concerns on equilibrium results. From a static perspective, the results indicate that retailers' fairness concern behavior will lead to a decrease in pricing and participants' efforts while manufacturers cost-sharing strategy will only enhance retailers' advertising efforts. From a dynamic perspective, products' greenness, long-term benefits of manufacturers and retailers, and social welfare will gradually increase and eventually saturate over time. In most cases, manufacturer-to-retailer cost-sharing is a win–win strategy that not only enhances the long-term interests but also realizes the greening and upgrading of the supply chain.