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The Signaling Mechanism of Fairness Concern in E-CLSC

The Signaling Mechanism of Fairness Concern in E-CLSC
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Author(s): Yanhong Qin (Chongqing University of Technology, China), Shaojie Wang (Chongqing University of Technology, China), Neng Gao (Chongqing University of Technology, China)and Guirong Liu (Chongqing College of Mobile Communication, China)
Copyright: 2023
Volume: 35
Issue: 1
Pages: 35
Source title: Journal of Organizational and End User Computing (JOEUC)
Editor(s)-in-Chief: Sangbing (Jason) Tsai (International Engineering and Technology Institute (IETI), Hong Kong)and Wei Liu (Qingdao University, China)
DOI: 10.4018/JOEUC.317102

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Abstract

The E-CLSC (E-closed-loop supply chain) game model dominated by manufacturer is set, and information value about asymmetry fairness concern of E-platform (E-commerce platform) is calculated for manufacturer, recycler, and E-platform. By signaling model under various signal costs, the authors study the condition for E-platform to transmit real information about fairness concern so as to reduce profit loss for all parties in E-CLSC. The authors prove that E-platform has the motivation to disguise or exaggerate fairness concerns in order to obtain more profit, and manufacturers must try to identify the E-platform's real fairness concern to avoid profit loss. Besides, only when different types of E-platforms need significantly different signaling cost, both of them would like to send real fairness-concern signal, and thus manufacturer can effectively identify E-platform's real information about fairness concern so as to improve recycling rate and optimize the whole E-CLSC operation.

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