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

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  • Liu, Zhi
  • Zheng, Xiao-Xue
  • Li, Deng-Feng
  • Liao, Chen-Nan
  • Sheu, Jiuh-Biing

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.

Suggested Citation

  • Liu, Zhi & Zheng, Xiao-Xue & Li, Deng-Feng & Liao, Chen-Nan & Sheu, Jiuh-Biing, 2021. "A novel cooperative game-based method to coordinate a sustainable supply chain under psychological uncertainty in fairness concerns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:transe:v:147:y:2021:i:c:s1366554521000156
    DOI: 10.1016/j.tre.2021.102237
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