Modeling Closed-loop Supply Chain with Dominant Retailer Considering Fairness Concern

The fairness concern was introduced into a closed-loop supply chain(CLSC)with dominant retailer, the effect of retailer's fairness concern to the optimal decisions of players and channel were analyzed. The results show that the retailer's fairness concern will lead to the decrease of manufacturer's profit, while the increase of his own utility. The retailer's fairness concern is not always beneficial to the utility maximization of the channel, specifically, the increase of dominant retailer's fairness concern is unfavorable to the channel when the fairness concern is relatively weak, but it will beneficial on the contrary.