Abstract: With the advancement of information technology, retailers often use data automatic collection devices to track and store information about consumers’ purchase history data, and thus new consumers and past consumers can be recognized. Not surprisingly, retailers often adopt the behavior-based pricing (BBP) strategy, i.e., to charge a different price for new consumers and past consumers. Additionally, it is observed that retailers sometimes choose to share consumers’ purchase history data with manufacturers, and thus both manufacturers and retailers can adopt BBP strategy. However, the adoption of BBP strategy has raised concerns about peer-induced fairness. That is, consumers will feel unfair if the price they purchase is higher than other consumers, which will consequently affect consumers’ purchase willingness. Following this logic, the question naturally comes out: when consumers are concerned about peer-induced fairness, is there any difference in different supply chain members’ adoption of BBP? And further, what is the difference?

Key words: peer-induced consumer fairness preference; behavior-based pricing; competitive supply chain; game theory