Abstract: Based on the Stackelberg master-slave game theory and by using dynamic game with incomplete information, a decision model for a supply chain with dual-channel is established. With the model, the bayesian equilibrium of price and profit is obtained. By sensitivity analysis for key parameters, it is found that the market risk and demand prediction accuracy of retailers have a significant influence on the retailers'decision for information sharing. The study shows that, the higher the market risk and prediction accuracy are, the more a retailer is willing to share information with others. Also, the obtained results reveal the relationship between manufacturer's bargaining power and retailer's information sharing choice.

Key words: dual-channel, information sharing, bargaining power, prediction accuracy, market risk