Game Models for Closed-Supply Chain with Different Competition-Cooperation Relationships under Fairness Preference

Abstract

Considering the complex problem of competition and cooperation among enterprises in the process of product selling and recycling, different coopetition game models of closed-loop supply chain with the fairness preference of a manufacturer and retailers are constructed according to the actual investigation. Then, this study primarily used fairness preference theory and game theory to analyze the impact of fairness preference on the pricing decision, recycling and remanufacturing strategy, and coopetition model selection. The results show that (1) enterprises’ fairness preference would increase the wholesale price and retail price, and the stronger the degree of fairness preference is, the more obvious the trend is; (2) enterprises’ fairness preference is not conducive to recycling and remanufacturing, and the higher level of fairness preference is associated with the lower recycling rate of waste products; (3) enterprises’ fairness preference would not affect the model selection but would benefit the overall profit.