Research on Coordination Mechanism of Supply Chain Under Asymmetric Information

Asymmetric information is prevalent in every aspect of the supply chain, so the designing of effective incentives under asymmetric information is of great importance to improve the overall efficiency of the supply chain. This paper designs supply chain coordination mechanism of leading provider under asymmetric information through principal-agent theory, and further elicits coordination parameters of non-linear contract. They supply contract, to some extent, improves the overall efficiency of the supply chain under asymmetric information and achieve pareto coordination of supply chain as well. Ultimately, it gives coordination mechanism of numerical examples under the linear contract and verifies the validity of the contract.