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Fairness and Channel Coordination

Management Science, Vol. 53, No. 8, pp. 1303-1314, 2007
2007
  • 26
    Citations
  • 5,069
    Usage
  • 2
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    26
    • Citation Indexes
      26
  • Usage
    5,069
    • Abstract Views
      4,530
    • Downloads
      539
  • Captures
    2
    • Exports-Saves
      1
      • SSRN
        1
    • Readers
      1
      • SSRN
        1
  • Ratings
    • Download Rank
      104,919

Paper Description

In this paper, we incorporate the concept of fairness in a conventional dyadic channel to investigate how fairness may affect channel coordination. We show that when channel members are concerned about fairness, the manufacturer can use a simple wholesale price above its marginal cost to coordinate this channel both in terms of achieving the maximum channel profit and in terms of attaining the maximum channel utility. Thus, channel coordination may not require an elaborate pricing contract. A constant wholesale price will do.

Bibliographic Details

Haitao (Tony) Cui; Jagmohan S. Raju; Z. John Zhang

Distribution Channels; Fairness; Channel Coordination; Behavioral Economics

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