Issue |
E3S Web Conf.
Volume 253, 2021
2021 International Conference on Environmental and Engineering Management (EEM 2021)
|
|
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Article Number | 03057 | |
Number of page(s) | 5 | |
Section | Environmental Equipment Engineering Management and its Technical Application | |
DOI | https://doi.org/10.1051/e3sconf/202125303057 | |
Published online | 06 May 2021 |
Screening a supplier with fairness preference
1 School of Management and Economics University of Electronic Science and Technology of China Chengdu, China
2 School of Management and Economics University of Electronic Science and Technology of China Chengdu, China
3 School of Management and Economics University of Electronic Science and Technology of China Chengdu, China
a zkm@std.uestc.edu.cn
b wangxy@uestc.edu.cn
* Corresponding author: cnidb@uestc.edu.cn
This paper is to study how a firm to screen an external supplier who has fairness preference using a general screening framework. The supplier with fairness preference provides products or services to the firm, and the firm designs a contract to screen the preference type of suppliers. The supplier’s fairness preference is adjusted by their ability difference, this paper analyzes how the supplier’s ability difference affect the optimal contract variables under the standard framework. The results illustrate that the larger ability difference will narrow the output difference between two different type suppliers. Associated with fairness preference, the probability distribution can increase or decrease the output difference. Furthermore, different strengths of the fairness preference would amplify or shrink the output difference between two different type suppliers.
© The Authors, published by EDP Sciences, 2021
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