Considering a fresh supply chain consisting of one supplier and one retailer, this paper studies the pricing and coordination of fresh supply chain under altruistic fairness concern of the supplier. Based on the centralized decision and Stackelberg game theory, the decentralized decision model of supplier’s altruistic fairness concern is constructed, the pricing decision is analyzed, and the cost-sharing contract based on altruistic fairness concern is designed for coordination. The results show that the altruistic fairness concern of supplier can inspire retailer to improve the freshness-keeping effort level, which can help to the operation of retailer and supply chain, but damage the profit of himself. Freshness-keeping efficiency has an important impact on the marketing strategy of retailer: the retailer will implement the “high-quality with high price” if the freshness-keeping efficiency is low, otherwise implement the “high-quality with low price”. Cost-sharing contract based on the altruistic fairness concern can realize the perfect coordination of supply chain within a certain range.

He Mengmeng, Yang Yuzhong. Research on Pricing and Coordination of Fresh Supply Chain with Altruistic Fairness Concern. Academic Journal of Business & Management (2023) Vol. 5, Issue 13: 119-126. https://doi.org/10.25236/AJBM.2023.051317.

[1] Zhang X, Zhang Q. Coordination of fresh agricultural supply chain considering fairness concerns under controlling the loss by freshness-keeping[J]. Control and Decision, 2017, 25(03): 112-116 (In Chinese)

[2] People.cn. Join hands with international fruit giants to establish a global alliance, and JD Fresh will create a “world map” of fruit[EB/OL]. (2018-09-06). http://m.people.cn/n4/2018/0906/c157-11569870.html

[3] National Development and Reform Commission. Implementation Opinions on Further Optimizing the Development Environment and Promoting the Circulation of Fresh Agricultural Products [EB/OL]. (2020-06-10).https://www.ndrc.gov.cn/xxgk/jd/jd/202006/t202006101231097.html

[4] Liu M L, Dan B, Ma S X. Optimal strategies and coordination of fresh E-commerce supply chain considering fresh-keeping effort and value-added service[J]. Chinese Journal of Management Science, 2020, 28(08): 76-88 (In Chinese)

[5] Cao Y, Li Y M, Wan G Y. Study on the fresh degree incentive mechanism of fresh agricultural product supply chain based on consumer utility[J]. Chinese Journal of Management Science, 2018, 26(02): 160-174 (In Chinese)

[6] Yang L, Ta Ng R. Comparisons of sales modes for a fresh product supply chain with freshness-keeping effort [J]. Transportation Research Part E: Logistics and Transportation Review, 2019, 125(05): 425-448

[7] Zheng Q, Ieromonachou P, Fan T, et al. Supply chain contracting coordination for fresh products with fresh-keeping effort[J]. Industrial Management & Data Systems, 2017, 117(3): 538-559

[8] Kaufmann P J, Stern L W. Relational exchange norms, perceptions of unfairness, and retained hostility in commercial litigation[J]. Journal of Conflict Resolution, 1988, 32(3): 534-552

[9] Ernst, Fehr, Klaus, et al. A theory of fairness, competition, and cooperation[J]. The Quarterly Journal of Economics, 1999, 114(3): 817-868

[10] Zhang Q, Zhang X. Pricing strategy of fresh agricultural supply chain under different behaviors of fairness concerns[J]. Systems Engineering, 2016, 34(09): 89-96 (In Chinese)

[11] Sun Y L, Hong M N, Shi K R. Revenue sharing contract of supply chain for fresh agricultural products considering fairness concerns[J]. Operations Research and Management Science, 2015, 24(06): 103-111 (In Chinese)

[12] Pu X J, Zhu Q Y, Lu L. Reference point effect, fairness preference and the relational governance on the supply chain of “leading agricultural enterprises + farmers”[J]. Journal of Industrial Engineering Management, 2016, 30(02): 116-123 (In Chinese)

[13] Pu X J, Zhuge R J. Impact of overconfidence and fairness concerns on the performance of R&D cooperation in the equipment manufacturing industry supply chain[J]. Journal of Industrial Engineering Management, 2017, 31(01): 10-15 (In Chinese)

[14] Feng C, Yu B, Wang Y T, et al. Fair Distribution mechanism of channel profit under exponential demand in agri-food supply chain[J]. Journal of Systems & Management, 2018, 27(03): 470-477 (In Chinese)

[15] Liu L, Li W M, Liu X L, et al. Research on bilateral decision-making behavior of agricultural products supply chain from perspective of fairness preference[J]. Statistics and Decision, 2019, 35(21): 35-39 (In Chinese)

[16] Yu D D, Wu Z Y, Pu S. Considering unfair aversion to coordination agricultural products supply chain with wholesale price under cost information asymmetry[J]. Journal of Central China Normal University, 2019, 53(03): 459-468 (In Chinese)

[17] Pu X J, Fan W D, Lu L. The evolution analysis of farmers cooperative’ production specification considering fairness preferences and strong reciprocity tendency[J]. China Agricultural University Journal of Social Sciences Edition, ,2014, 31(01): 52-62 (In Chinese)

[18] Zhang Q, Zhang X. Pricing strategy of fresh agricultural supply chain under different behaviors of fairness concerns[J]. Systems Engineering, 2016, 34(09): 89-96 (In Chinese)

[19] Zheng Q, Ieromonachou P, Fan T, et al. Supply chain contracting coordination for fresh products with fresh-keeping effort[J]. Industrial Management & Data Systems, 2017, 117(3): 538-559

[20] Sun Y L, Hong M N, Shi K R. Revenue sharing contract of supply chain for fresh agricultural products considering fairness concerns[J]. Operations Research and Management Science, 2015, 24(06): 103-111