Abstract: Considering the fact that each of the supply chain members grasps asymmetric information on demanding and supplying,the author analyzes the preconidtions to realize the information sharing among the members.A game model is suggested to share information on demand and cost.The change between the expected profit before sharing and that after sharing is discussed and an incentive mechanism is also proposed to promote the information sharing among the manufactures and the distributors.This incentive mechanism modifies the profit distributed at the point of balanced Nash solution and therefore,with a favorable price and a one-time allowance,the benefits brought by the information sharing of all the supply chain members have been increased.

Key words: supply chain, asymmetric information, information sharing, gama theory, incentives