Channel Bargaining with Fairness-concerned Agents under Power-form Demand

In this paper we build on the framework of coordination with fairness and investigate the impact of fairness concerns on channel coordination under power-form demand function. Similar to the findings by literature, we show that the supplier can design a simple wholesale price contract to coordinate a two-stage supply chain when both the retailer and the supplier are fair-minded. In comparison to the results by literature with a linear demand function and an exponential demand function, we find that power-form demand function facilitates coordination for a larger range of model parameters.