Pricing Decisions of a Supply Chain with Multichannel Retailer under Fairness Concerns

Table 2

Symbol and notations.

Parameters
	Unit sale cost of the retailer’s online channel
C2	Unit sale cost of the retailer’s offline channel
CE	The cost coefficient of the retailer’s effort (e.g., advertising)
a	Total potential market size
b	Coefficient of the price elasticity of demand
d	Cross-price sensitive parameter, which captures the channel competitive effect
λ	The retailer’s underlying market share and the manufacturer’s is
q	The retailer’s market demand
Q	The manufacturer’s market demand
τ	The percentage of online sales in the retailer’s market demand
γ	The disadvantageous inequity concern parameters
β	The advantageous inequity concern parameters
Decision variables
	Retail price set by the retailer
	Selling price set by the manufacturer
	Wholesale price set by the manufacturer
Performance measures
	Profit of the retailer
	Profit of the manufacturer
	Utility of the retailer ()/the manufacturer ()