Revenue Sharing Contract Of Supply Chain Enterprise Based On Loss Aversion

Revenue sharing contract is an effective operation mode of business managementbetween supply chain enterprises. In our country, how to coordinate the relationshipbetween good upstream and downstream supply chain enterprise is a very importantquestion for the enterprise management. How to allocate benefit between the membersin supply chain system has very important influence on supply chain coordination.Revenue sharing contract is an effective way to coordinate the supply chain, but in theactual decision in the supply chain enterprise is loss aversion tendencies, policy makersare not completely rational, so the loss averse participants of the supply chain system ismore and more important. So we need a more reasonable characterization method todepict loss aversion tendency of supply chain members. On this basis, how to betteranalyze the process of revenue sharing contract to coordinate the supply chain is veryimportant, and also it is the theoretical basis for the actual supply chain managementand coordination.Firstly, this paper discusses the supply chain revenue sharing contract researchbackground and significance, research status at home and abroad, and relevant theory ofloss aversion; Secondly, there is no loss aversion tendencies were systematicallyanalyzed by a manufacturer, a distributor and a retailer of revenue sharing contractmodel of three-stage supply chain system; Thirdly, this paper studies the revenuesharing contract with a three-level supply chain which is consisted of a risk neutralmanufacturers, a risk neutral distributor and multiple competing loss aversion retailers,and respectively analyzes the supply chain under the centralized decision-making anddecentralized decision-making decision, and also analyzes on the problems in such acase of supply chain coordination; Finally, on the basis of analysis this paper putforward the countermeasures and measures to improve coordination between supplychain enterprises which faced of some problems such as loss aversion phenomenon ofthe supply chain enterprises.