Fairness preferences and bounded rationality under flexible contract design and optimization
|School||Huazhong University of Science and Technology|
|Keywords||Fairness Preference Bounded rationality Revenue-sharing contract Buyback Contracts|
The traditional contract theory is based on the basis of economic man selfish , they make decisions to maximize their own interests as a starting point , ignoring the other aspects of the condition . And we joined in the study of behavioral factors that fairness preferences and bounded rationality factor , the results of the application of behavioral economics to the traditional contract management theory is the study of today's hot topics in recent years, although some scholars have studied individually fair preferences or bounded rationality , but less of them together . This paper studies revenue-sharing contracts and repurchase contracts , drawing on fairness preference FS theoretical model of bounded rationality Logit model , on the assumption that policy-makers have fairness preferences and bounded rationality conditions, combined with traditional contract theory and game theory to construct appropriate model for fairness preferences and bounded rationality decision-making decision-makers a comprehensive and in-depth discussion and analysis , using MATLAB software for numerical analysis and description of conclusions and propose a reasonable explanation. This study shows that regardless of the vendor is in a strong or weak , fairness preferences and bounded rationality on the retailer's order quantity is not affected, and under the influence of the parameters in a fair vendors ( retailers ) the choice of parameters of the flexible contract scope is much narrower , when certain retailers bounded rationality , the flexible contract parameter is incremented or decremented fair argument function ; when the fair parameters fixed, flexible contract parameters are bounded rationality factor decreasing or increasing function . This article further investigated under the established order quantity suppliers tend to revenue-sharing contract or buy-back contract.