Abstract
This paper studies the effects of channel power structure and participants' risk-averse attitude on differentiated pricing policies of closed-loop supply chains. It is assumed that the manufacturer is risk-averse and the retailer is risk-neutral. The manufacturer's expected utility function and the retailer's expected profit function are obtained by mean-variance theory. Then the differentiated pricing policies and profit allocation problem are discussed under three channel power structures: manufacturer-Stackelberg (MS), retailer-Stackelberg (RS) and Vertical Nash (VN) equilibrium. The optimal wholesale prices, retail prices and production quantities of new manufactured products and remanufactured products are derived and compared under different cases. Finally numerical analysis of risk-averse degree on participants' profits is given. The study has shown that the VN mode yields the best closed-loop supply chain performances, and then is the MS mode, the worst is the RS supply chain.
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