The Green Supply Chain Model With Retailer’s Fairness Preference

Recent years,environmental pollution is becoming more and more prominent,how to effectively promote the transition of traditional economy to green economy has become a hot topic,green supply chain construction is an important entrance for the transformation of green economy,it can achieve significant economic benefit effectively,also can obviously improve enterprise social benefit.Although the research and development costs of green products is relatively high,as consumers’environmental awareness gradually increases,green products have more market attraction than traditional products,competition between enterprises has shifted from the previous single price competition to the competition between price and product green level.In addition,the competition between traditional products and green products is inevitable in the transformation of traditional supply chain to green supply chain.So the research of the manufacturers green production models under manufacturers competition game not only fits the current hot issues of green economy research,also provides some basis of the choice of green production mode for enterprise decision makers.In addition,a large number of behavioral economics experiments have proved that the existence of fair preference among supply chain members,In reality,the members of the supply chain that are in pursuit of the maximization of their own gains also will perceive the fairness of income distribution by comparing the members’ earnings.Therefore,this paper will analyze the influence of retailer’s fair preference behavior on manufacturers’ different green production modes.Based on the introduction of fair preference behavior of a retailer,this paper considers the different green production modes of manufacturers under the game of Nash and Stackelberg,build the corresponding models,and the game theory method was applied to obtain the optimal wholesale price,retail price,product greenness level and the optimal benefit of each supply chain’s members,on this basis,we compare the benefits of channel members under different production modes,and the impact of retailer’s fairness preferences on green production strategies of manufacturers.Finally,with the help of numerical analysis,it further expounds the mechanism of retailer’s fairness preference on channel members’ decision making.The results of the study are as follows:(1)In the Nash game of double manufacturers,when the retailer’s fair preference coefficient is large,The single/double green manufacturers’ mode of production is superior to the dual-traditional manufacturer mode,and the two manufacturers of green production will achieve a Nash equilibrium.(2)In the Stackelberg game of double manufacturers,if the retailer’s fairness preference coefficient is greater than zero,for manufacturers,the two green manufacturers’ production mode is better than the single green manufacturer’s production mode,and the single green manufacturer’s production mode is better than the two traditional manufacturers’ production mode.(3)Regardless of the manufacturers’ green production models,the wholesale price,retail price,and green level of products decline with the increase of retailer’s fair preference.