Supply Chain Networks Equilibrium Problems Regarding Inequity-averse Retailers

Traditional economics believes that people are always completely rational,but in real life,people's certain emotions or behaviors lead to decisions that are not completely rational,they are rather bounded rational,which affects their decision-making.The decision maker's inequity aversion behavior is embedded into the supply chain network equilibrium problems.The supply chain network was composed of many equity-neutral manufacturers,inequity-averse retailers and demand markets.Based on the FS&ERC inequity aversion theory,the retailer's utility function is established,and the equilibrium conditions of all decision-makers and the supply chain network were modeled based on the variational inequality and the complementary theory.The results show that the utility of the retailer,who has advantageous or disadvantageous inequity-averse behavior,is lower than that of the equity-neutral retailer.Moreover,the transaction quantity and the utility of the retailer both decrease with the increase of the inequity-averse coefficient.The main content and innovation points of this article are as follows:(1)The supply chain network was composed of many equity-neutral manufacturers,inequity-averse retailers and certain demand markets.Analyze the influence of fair behavior of retailers on their trading quantity and utility under the Cournot-Nash game.(2)In order to better fit the actual situation,the supply chain network was composed of many equity-neutral manufacturers,inequity-averse retailers and uncertain demand markets.Analyze the influence of fair behavior of retailers on their trading quantity and utility.