Optimal pricing for dual-channel supply chain with fairness concerned manufacturer

We develop a single manufacturer single retailer two-echelon supply chain model which has dual distribution channels. The problem of pricing between different channels is considered when the manufacturer is fairness concerned. Three different situations are considered: the centralized supply chain model, the decentralized supply chain model and the decentralized supply chain model with fairness concerned manufacturer. The optimal price of electronic channel and traditional channel are obtained in Bertrand model, the profits of supply chain and channel members are also given. We also illustrate our analytical results with numerical examples, and we find out the manufacturer´s fairness concerning is harmful with the double marginalization. We also conclude that the benchmark which manufacturer´s fairness concerned affect the optimal channel product prices. At last, based on the results of numerical examples, we give managerial insights for the manufacturers.