Cui, Tony Haitao; Raju, Jagmohan S.; Zhang, Z. John - In: Management Science 53 (2007) 8, pp. 1303-1314
We incorporate the concept of fairness in a conventional dyadic channel to investigate how fairness may affect channel coordination. We show that when channel members are concerned about fairness, the manufacturer can use a simple wholesale price above her marginal cost to coordinate this...