Research On Pricing Strategy Of Dual-channel Supply Chain Under Risk-aversion And Fairness Preference Of Retailer

With the rapid development of e-commerce,the dual-channel supply chain has gradually begun to take shape.The emergence of e-commerce,as a direct distribution channel,is conducive to shopping facilitation and market share expansion,while it also fosters a competitive relationship with traditional retail channels and intensifies conflicts of interest among the supply chain participants.Therefore,how to resolve the conflicts between the two channels to formulate a more reasonable pricing strategy has become an urgent problem in the current dual-channel supply chain.In this context,based on the literature review of pricing of existing dual-channel supply chain,considering the market demand,a random variable and influenced by the promotion efforts,the risk aversion and behavioral fairness preference of retailers are introduced into the dual-channel supply chain.Firstly,using mathematical and economic models,Stackelberg game theory,and fairness preference theory,two different pricing models for dual-channel supply chain are established by considering retailers' risk aversion with absolute fairness preference and risk aversion with relative fairness preference respectively.Then,the effects of parameters on pricing decisions are analyzed and verified by numerical simulation,such as production cost,risk aversion,absolute fairness preference,relative fairness preference,and promotional effort level.Finally,the influence of different fair preference reference points of retailers on the entire supply chain is analyzed through comparing the optimal pricing equilibrium solutions under the two models.The research conclusions are as follows: Under the two pricing models,various parameters have distinct effects on pricing and different dynamic impacts on the profits of members in the supply chain.As the retailers' risk aversion goes higher,the retailers' selling price decreases and the wholesale price increases.The increase of retailers' fairness preference of will only lead to lower wholesale price.Supply chain participants should comprehensively consider the impact of production costs,retailers' risk aversion,and fairness preferences on pricing,while retailers should keep the promotion level within a reasonable range.Whether it is considering risk aversion and absolute fairness preference or considering risk aversion and relative fairness preference,both behaviors will have a cross-influence on the wholesale price,expected profit and utility of manufacturers and retailers.At the same time,it is found that pricing of supply chain participants and efficiency of the entire supply chain will be affected by the selection of reference points for fairness preference of retailers.