Who Benefits from Altruism in Supply Chain Management?

DOI: 10.4236/ajor.2012.21007   PDF   HTML     5,293 Downloads   10,138 Views   Citations


The significant effect of social preference on strategic behavior has been convinced by recent research. Along this stream of research, we study firms’ altruistic incentives in supply chains since the selfish rationality can’t deal with economic behaviors. We show that the performance of the supply chain in consideration of altruism is between those of scenarios under decentralization and under integration. We further shows that a manufacturer, as a leader, should find an egoistic retailer, while a retailer, as a follower, should find a manufacturer with altruistic liability, to form a good chain.

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Z. Ge and Q. Hu, "Who Benefits from Altruism in Supply Chain Management?," American Journal of Operations Research, Vol. 2 No. 1, 2012, pp. 59-72. doi: 10.4236/ajor.2012.21007.

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The authors declare no conflicts of interest.


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