Abstract: Based on the assumptions of fairness preference, the knowledge sharing incentive and monitoring model of supply chain with two agents is established by introducing the monitoring function. Thus an analysis is made of the influence of the fairness preference on incentive and motoring effect of knowledge sharing. Through the model building and digital simulation, conclusion is drawn as follows: incentive and monitoring can, as a complementary device, promote knowledge sharing level. The core enterprise will correspondingly increase the proportion of punishment and reduce incentive when the supervision on it is severer. The role of member enterprise fairness preference on incentive coefficient and reward and punishment coefficient are not absolutely active; however, it can improve the level of knowledge sharing.

Key words: supply chain management, knowledge sharing, fairness preference, incentive and monitoring