Generally, low efficiency in information-sharing and the information distortion are came into being because of the conflicts in interests among the partners in the supply chain. This article discusses the phenomenon of information distortions and bullet effect in brief. It focuses on the information distortion caused by mechanism, and analyses the problem with game theory. In our discussion, a supply chain formed by a producer and a retailer is supposed, and to avoid information distortions, the producer how to design its mechanism.