Research on Supplier Channel Encroachment Strategies Considering Retailer Fairness Concerns from a Low-Carbon Perspective

Xiao Zou, Huidan Luo () and Yingjie Yu
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Xiao Zou: School of Economics and Management, Hunan University of Technology, Zhuzhou 412007, China
Huidan Luo: School of Economics and Management, Hunan University of Technology, Zhuzhou 412007, China
Yingjie Yu: School of Economics and Management, Hunan University of Technology, Zhuzhou 412007, China

Sustainability, 2025, vol. 17, issue 19, 1-37

Abstract: Driven by China’s “dual carbon” strategy, concerns about channel fairness and green investment have become key frontier issues in supply chain management. This study focuses on a two-tier supply chain under a low-carbon background and innovatively incorporates both fairness concerns and green investment perspectives. It systematically explores the impact mechanisms of fairness concern coefficients and green investment levels on channel pricing and profit distribution across four scenarios: information symmetry vs. asymmetry and the presence vs. absence of channel encroachment. The simulation results reveal the following: (1) Under information symmetry and without channel encroachment, an increase in the retailer’s fairness concern significantly enhances its bargaining power and profit margin, while the supplier actively adjusts the wholesale price to maintain cooperation stability. (2) Channel encroachment and changes in information structure intensify the nonlinearity and complexity of profit distribution. The marginal benefit of green investment for supply chain members shows a diminishing return, indicating the existence of an optimal investment range. (3) The green premium is predominantly captured by the supplier, while the retailer’s profit margin tends to be compressed, and order quantity exhibits rigidity in response to green investment. (4) The synergy between fairness concerns and green investment drives dynamic adjustments in channel strategies and the overall profit structure of the supply chain. This study not only reveals new equilibrium patterns under the interaction of multidimensional behavioral factors but also provides theoretical support for achieving both economic efficiency and sustainable development goals in supply chains. Based on these findings, it is recommended that managers optimize fairness incentives and green benefit-sharing mechanisms, improve information-sharing platforms, and promote collaborative upgrading of green supply chains to better integrate social responsibility with business performance.

Keywords: low carbon; supply chain; fairness concern; channel encroachment; game theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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