Abstract: Considering the closed-loop supply chain composed of dual-channel retailers and manufacturers, the dynamic game models under the direct recovery mode of the manufacturer and the model of the third party recycling are established. Based on the fair and neutral balanced strategy, the influence of the horizontal fair preference of the offline retailer on the pricing strategies and the profit of the decision-making entities in the double-channel closed-loop supply chain are analyzed. The study shows that regardless of whether the retailer has horizontal fair concerns, the direct recovery model of the manufacturer is better than that of the third party. In the direct recycling model, the horizontal fairness preference of offline retailer makes two retailers in the forward supply chain compete to reduce their retail prices in order to increase their market share, manufacturers encourage competition to reduce the wholesale price, and prices are negatively correlated with the horizontal fair concern coefficient. While in the reverse supply chain, the manufacturer will improve the recovery rate of waste products. Compared with the fair and neutral situation, this pricing strategy increases the utility of the manufacturer and the entire supply chain system, while the two retailers are the opposite. The manufacturer, as a channel manager, can encourage retailers to compete in price reduction through tripartite revenue sharing contract to achieve the Pareto Optimally.

Key words: closed-loop supply chain, double channel, horizontal fairness, contract coordination, pricing strategy