Author(s)

Zehui Ge, Qiying Hu

Business School, University of Shanghai for Science and Technology, Shanghai, China.
School of Management, Fudan University, Shanghai, China.

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.

Supply Chain Management; Coopetition; Altruistic Preference; Advertising/Sales Effort; Pricing

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.