Impact of fairness on strategies in dual-channel supply chain

Fairness plays an important role in developing and maintaining supply chain relationship. Based on a dual-channel supply chain, this paper examines the effect of fairness on the supply chain partners' strategies. We find that if the retail channel is dominated by the direct channel, the manufacturer does not care about channel fairness. Otherwise, the manufacturer has to achieve fairness to avoid being punished by a higher retail price. We also find that the double marginalization will be mitigated when the fairness is achieved.