Study On Supply Pricing Method And Distribution Of Profits With Stacelberg Game Based On Fairness Theory

The social and economic take-off have led to the great progress of network information technology,which makes today's market become increasingly competitive.As a result,companies that always play a lone hand are difficult to survive.Only by cooperating with other enterprises and can the average companies remain invincible in the business world.However,the benefits of members in a supply chain are affected by how they collaborate with each other,how they change their channel and how they adjust their strategy.If enterprises cannot deal with the questions mentioned above,they will be faced with the channel conflict due to unevenly benefit distribution,which will have a significantly impact on the efficiency and performance of the whole supply chain.This study tried to discuss and analyze those questions by building a game model.in order to improve the relationship between the members of a supply chain.This research focused on the question of how the members in a supply chain choose their channel and pricing method.In addition,this study built a game model concerning manufacturers and retailers under the condition that they cooperate with each other by profit sharing.In the past few years,equity has become the hot topics in the research field of management and economics and the theory of equity preference has made a great progress accordingly.Due to the hypothesis of rational man,the individual behavior and psychology cannot be rightfully researched.Thus,this study made the further revision by adding the fairness preference coefficient into the game model and correct the optimal solution by constructing utility function,which can help us analyze the fairness preference of both manufacturers and retailers.According to the research result,pricing and profit of participants can be different along with the change of their cooperation degree.Under the influence of the game model as well as the fairness coefficient,the gap of the participants' price and profits is getting narrowed.In conclusion,fairness preference can significantly influence the whole game model in a supply chain.