Abstract: To investigate the impact of fairness-concern on supply chain financing and operational decision-making, a two-echelon supply chain composed of a capital-sufficient supplier with fairness-neutral and a capital-constrained retailer with fairness-concern is designed and a comparative analysis is conducted on bank financing and trade credit financing based on Nash bargaining fairness-concern framework. The results suggest that:when the wholesale price reaches a certain threshold, the retailer refuses to finance and trade. when the wholesale price is lower than this threshold, the retailer will choose trade-credit financing under certain conditions, otherwise, he will choose bank financing. And the differences between fairness-neutral retailer and fairness-concern retailer are also compared. Given a wholesale price, the retailer's decision tends to be conservative if he is fairness-concerned, which means that the optimal order quantity will decrease under both financing methods. So the supplier will reduce the optimal wholesale price to encourage the retailer to increase the order quantity under both financing methods. It can be seen that the retailer's fairness-concern will affect the supply chain financing and operational decisions, and make the supply chain profit distribution more equitable.

Key words: fairness-concern, capital constraints, bank financing, trade-credit