Abstract: Anticipated regret is one important respond of psychology risk for consumers. Consumers might behave anticipated regret in their purchasing decisions for that it is difficult for them to assess the valuation of remanufactured products owing to the uncertainty in products' attributes. This would play a key role in the operation efficiency and power structure in supply chain with remanufacturing. However, the existing literature didn't pay their attentions to the problem. In this paper, the utility of consumer under anticipated regret is developed and demand functions of the new and remanufactured products are derived in order to study the influence of consumer's anticipated regret on supply chain. Then, the game models which are under the three power structures including no leader (NL), OEM is leader (OL) and IR is leader (IRL) are developed and solved. The relationships of product prices, demand quantity and anticipated regret and consumer heterogeneity among the above three power structures are analyzed based on theoretical analysis and numerical simulation. In addition, the preferences of each supply chain member, consumer and society for the three power structures are studied. The results show that the remanufactured product price has negative relationship with the sensitiveness of consumer's anticipated regret and consumer heterogeneity. Meanwhile, as the two parameters increasing, the demand of remanufactured product and profit of IR are increasing. It is found that OEM and IR might enjoy a "second-move advantage", which is decided by the sensitiveness of consumer's anticipated regret. In addition, when both the consumer's anticipated regret sensitiveness and heterogeneity are large enough, both consumers and society prefer OL model. However, in the other situations, consumers prefer NL model, but society might prefer IRL model or NL model.

Key words: anticipated regret, consumer heterogeneity, remanufacturing supply chain, competitive strategy