Abstract: In order to study the effect of consumers' stochastic reference prices on the pricing decision of green supply chain, a green supply chain model with retailer's risk aversion is established. The optimal equilibrium is obtained and a sensitivity analysis is conducted through the Stackelberg game method and optimization theory. Then, a combined contract of sharing revenue and cost is designed to coordinate the green supply chain. In addition, the proposed model is extended to analyze the impact of information asymmetry on channel members. The study finds that: 1) the expected profits of manufacturers and channels increase with the increase in the deviation of stochastic reference prices, while those of retailers increase first and then decrease with the deviation of stochastic reference prices; retailer's risk aversion and the deviation of stochastic reference prices have similar effects on channel members' expected profits; 2) the more sensitive consumers are to stochastic reference prices, the more detrimental it is to both manufacturers and retailers; 3) information asymmetry is not beneficial to manufacturers, nor is it necessarily beneficial to retailers.

Key words: stochastic reference price, green supply chain, risk averse, information asymmetry