The Revenue Sharing Contract Design of the Closed-Loop Supply Chain Coordination with Loss-Averse Retailer

A two-echelon closed loop supply chain with a risk-neutral manufacture and a loss-averse retailer is established, and the impact of revenue sharing contract is analyzed in the channel, which shows that the contract can eliminate the double marginalization and risk aversion effect, and hence closed-loop supply chain with loss-averse retailer can achieve coordination. Also, the bound and rule of the contract parameters is given. Finally, by the study of an example and the sensitivity analysis of loss-averse closed-loop supply chain coordination model based on revenue sharing contract, the effectiveness and the practical value of model is verified.