Research on ordering policy under the revenue sharing contract with loss-averse retailer

The traditional supply chain revenue sharing contract research assumes that the decision makers are risk neutral, less related to risk factors impact on the decision makers. The supply chain consists of one loss-averse retailer and one risk neutral supplier. Considering the retailer´s optimal ordering strategy with revenue sharing contract in two cases which the supplier and the retailer respectively decides the revenue sharing ratio. The expected earnings of supply chain system under the model of retailer is higher than the model of supplier, and the risk aversion coefficient influence decision makers expected earnings. The numerical analysis shows the effectiveness of the conclusion.