Abstract: Game models of manufacturers and retailers are established based on the modes of government's subsidy for manufacturers,considering retailers' psychology of fair concern.It analyzes the influence of subsidy and fair concern on manufacturers' and retailers' decision and their performance.Results indicate that consumer's expense decreases with government's subsidy and fair concern has no effect on consumer from consumer's perspective;Government's subsidy improves demand and fair concern has no effect on demand.Subsidy is more advantageous for improving supply chain's performance with fair concern from government's perspective;Government's subsidy improves enterprises' and retailers' performances.Fair concern has advantage for retailers,but disadvantage for manufacturers,and the more government's subsidy is,the more influence fair concern brings about.