Abstract: The asymmetry of information in the development of market economy has led to a large number of fake and shoddy products, which disturb market order and seriously affect people′s life The principal-agent model under asymmetric information is established, and the regulatory policies for fake products are studied in the process related to factories, retailers and customers Combining with incentive mechanism and punishment mechanism, the optimal contract design under some certain premises is proposed, which can prevent the fake and shoddy products entering into the market Results can provide reference for regulatory policies on fake disposal management

Key words:  principal-agent model, information asymmetry, anti-counterfeit, contract design