Study on the Information Sharing Incentive and Supervisory Mechanism in Supply Chain

Information sharing incentive and supervisory mechanism enhances the current supply chain management environment. Based on the principal-agent theory, this paper studies how the core enterprise provides an incentive and supervisory mechanism to the partner enterprises, so as to improve their effort level of information sharing. In the designed mechanism, the liner function is firstly induced to describe the relationship between effort level of partner enterprises and output. Then by comparing the linear contract under symmetric information with asymmetric information, different parameter´s terms to ensure the validity of mechanism is discussed.