Role of Inequity Perception on Counterfeiting Strategy of Retailer

摘要: Counterfeiting is a widespread phenomenon across various sectors ranging from aerospace components to software products. Retailers often cite manufacturer taking exorbitant margins as reason for indulging in counterfeiting. In this problem, we attempt understand retailer counterfeiting through behavioral lens. We try comprehend role of inequity perception the his/her decision. analyze supply chain perspective where monopolist has deal with authorized selling counterfeit goods. We use Fehr and Schmidt model capture utility retailer. Our results demonstrate that if tries charge high beyond threshold limit tends retaliate by increasing market price more evaluate optimal pricing strategy should adopt based on advantageous disadvantageous inequality fair share. The are further compared objective only profit maximization. show his share below value, manufacture can set wholesale at which both players have better payoff than maximization case.