A novel cooperative game-based method to coordinate a sustainable supply chain under psychological uncertainty in fairness concerns

By Zhi Liu, Xiaoxue Zheng, Dengfeng Li, Chen-Nan Liao, Jiuh‐Biing Sheu. 2021

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Abstract This paper investigates how retailers’ fairness concerns affect cooperative relationships in a three-party sustainable supply chain (TSSC) and how to coordinate such a supply chain when the degree of fairness concern is treated as an interval. Utilizing the Nash equilibrium strategy, this study seeks equilibrium solutions and profits under five non-cooperative and cooperative models and reveals that fairness concerns indeed affect members’ decisions and their cooperation for sustainable supply chain management. Furthermore, we develop a novel coordination method by incorporating the interval-valued least square pre-nucleolus (IVLSPN) approach and the three-party Nash bargaining game model to perfectly coordinate this TSSC.

Subfields: Management Information Systems, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a60a579d0e15faed837e0f8b318a45264157338d