The prospect theory is utilized to investigate the issue of pricing and coordination mechanism for a closed-loop supply chain with a loss-averse retailer facing price-sensitive stochastic demand based on the retailer collection mode. Firstly, under two wholesale schemes, optimal behaviours of the retailer and manufacturer are derived and compared based on the decentralized decison. The impact of loss averse degree on joint decisions of optimal retail price and optimal order quantity is analyzed. The comparision between decentralized and centralized decision shows that the decentralized supply chain has efficiency losses, then revenue-sharing contract is designed to coordinate the decentralized supply chain. Finally, numerical examples are given to verify the above conclusions and analyze the impact of collection rate on optimal decisions and channel member’s utilities.