Abstract：In this paper， the pricing policies for dualchain supply is studied， which consists of a manufacturer and a retailer in a bilateral monopoly setting. Pricing model of online and offline is established in which consumers' loss aversion is considered with added value by offline channel and returns from online channel. The centralized and decentralized pricing policies based on Stacklberg games are formulated， and the optimal prices along with expected profits are obtained. The numerical analysis showed that the centralized pricing policy is better when retailer's market share is very large， otherwise， it's better not to open the online channel for the manufacturer； the profits of manufacturer and retailer decrease with the increase of return rate both in centralized and decentralized pricing channel； the profits of manufacturer and retailer increase with the extent of loss aversion and the optimal price difference between online and offline decreases with the extent of loss aversion in decentralized channel.
