Abstract: In order to research the impact of fairness preference on supply chain risk transmission, the fairness preference utility function is introduced to construct a risk transmission model in a manufacturer-led supply chain. And the risk elasticity coefficient is obtained by the analogy of the price elasticity coefficient, and then the fairness preference matrix is used to solve the problem of pricing and revenue risk transmitting caused by the variation of production cost.The research shows that the manufacturer’sfairness preference has a positive effect on the risk of both wholesale price and sales price. When retailer has its fairness preference alone, it will only has a negative effect on wholesale price risk. When both the members have the fairness preferences respectively, manufacturer’sfairness preference will stimulate the retailer’sfairness preference to reduce the sales price risk. Market size will weaken the influence of fairness preference on pricing risk, while it will be strengthened by the price sensitivity.A general conclusion is proposed and demonstrated for the revenue risk transmitting: The revenue risk transmitting has nothing to do with fairness preference but is only related with the external market.Numerical simulation shows that retailers need to rationally grasp the degree of fairness preference to control pricing risk, while manufacturers need to pay more attention to fairness to reduce pricing risk. The results give a certain reference to the rational balance of revenue and risk, and have important guiding significance for the benign development of supply chain risk management under the irrational characteristics.

Key words: fairness preference, elasticity coefficient, risk transmission, manufacturer-led, supply chain risk