The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory Model
Traditional supply chain literature on contracting only considers agents’ economic motivation. Nowadays, with the development of behavioral economics, social preference theory has been widely used in supply chain research. These social preferences are distinct from economic motivation and will influ...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2023-01-01
|
| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2023/4911514 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849690457990234112 |
|---|---|
| author | Abdul Majeed Yao Wang null Muniba Mollah Aminul Islam |
| author_facet | Abdul Majeed Yao Wang null Muniba Mollah Aminul Islam |
| author_sort | Abdul Majeed |
| collection | DOAJ |
| description | Traditional supply chain literature on contracting only considers agents’ economic motivation. Nowadays, with the development of behavioral economics, social preference theory has been widely used in supply chain research. These social preferences are distinct from economic motivation and will influence agents’ behaviors in the supply chain. Agents will make decisions based on not only self-interests but also the interests of others, reciprocity, and fairness. This paper introduces the relationship and status preferences in the utility function. We aim to analyze the impact of social preference on individual competition intensity in the supply chain. A Stackelberg game model (tacit collusion) is used as the theoretical framework of the choice behavior between competition and cooperation. The theoretical results and numerical simulation analysis show that under some conditions, suppliers and retailers who take the social preference factors into account can realize multiple-stage channel coordination through revenue sharing. Moreover, social preference factors will influence the choice behavior of agents in competition and cooperation. Specifically, the relationship preference promotes close cooperation among enterprises and significantly improves the supply chain and individual performance. Status preference causes fierce competition among enterprises and adversely affects supply chain performance and individual performance, making it more unstable. These findings can provide useful insights for supply chain coordination. |
| format | Article |
| id | doaj-art-ebe1d99a2bd74f4d966f9221c055e0ac |
| institution | DOAJ |
| issn | 1099-0526 |
| language | English |
| publishDate | 2023-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-ebe1d99a2bd74f4d966f9221c055e0ac2025-08-20T03:21:18ZengWileyComplexity1099-05262023-01-01202310.1155/2023/4911514The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory ModelAbdul Majeed0Yao Wang1null Muniba2Mollah Aminul Islam3Business SchoolSchool of International Trade and EconomicsSchool of Insurance and EconomicsDepartment of Accounting and Information SystemsTraditional supply chain literature on contracting only considers agents’ economic motivation. Nowadays, with the development of behavioral economics, social preference theory has been widely used in supply chain research. These social preferences are distinct from economic motivation and will influence agents’ behaviors in the supply chain. Agents will make decisions based on not only self-interests but also the interests of others, reciprocity, and fairness. This paper introduces the relationship and status preferences in the utility function. We aim to analyze the impact of social preference on individual competition intensity in the supply chain. A Stackelberg game model (tacit collusion) is used as the theoretical framework of the choice behavior between competition and cooperation. The theoretical results and numerical simulation analysis show that under some conditions, suppliers and retailers who take the social preference factors into account can realize multiple-stage channel coordination through revenue sharing. Moreover, social preference factors will influence the choice behavior of agents in competition and cooperation. Specifically, the relationship preference promotes close cooperation among enterprises and significantly improves the supply chain and individual performance. Status preference causes fierce competition among enterprises and adversely affects supply chain performance and individual performance, making it more unstable. These findings can provide useful insights for supply chain coordination.http://dx.doi.org/10.1155/2023/4911514 |
| spellingShingle | Abdul Majeed Yao Wang null Muniba Mollah Aminul Islam The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory Model Complexity |
| title | The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory Model |
| title_full | The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory Model |
| title_fullStr | The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory Model |
| title_full_unstemmed | The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory Model |
| title_short | The Impact of Social Preferences on Supply Chain Performance: An Application of the Game Theory Model |
| title_sort | impact of social preferences on supply chain performance an application of the game theory model |
| url | http://dx.doi.org/10.1155/2023/4911514 |
| work_keys_str_mv | AT abdulmajeed theimpactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel AT yaowang theimpactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel AT nullmuniba theimpactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel AT mollahaminulislam theimpactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel AT abdulmajeed impactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel AT yaowang impactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel AT nullmuniba impactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel AT mollahaminulislam impactofsocialpreferencesonsupplychainperformanceanapplicationofthegametheorymodel |