Social preferences and supply chain transactions: an analysis with Brazilian decision makers
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Abstract
Supply contracts amongst suppliers and buyers can be used as powerful mechanisms to manage trade-offs between risks and costs in negotiations amid the constituent parts of the supply chain. In decentralized decision-making, as a trade transaction between a wholesaler and a retailer, social preferences can influence behavior of these decision makers. The objective of this study was to verify the effect of social preferences on transactions in supply chains, using Brazilian individuals with the purpose of comparing the results with those obtained in other countries. The methodology proposed in this study was quantitative, as variables already studied by previous studies were investigated. An experiment was conducted with three handlings (normal, status and relationship) simulating buying and selling situations in a supply chain. The results indicated that highlighting the performance status of a supply chain improves the efficiency of the chain when compared to normal transactions, or when there is a relationship between the links.
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