Based on the prospect theory and principal-agent theory, this paper studies how to design the markdown money
contract under asymmetric information when the supply chain is composed of a loss-averse retailer and a risk-neutral supplier.
Through analyzing the order behavior of the retailer and the pricing strategy of the supplier, it is found that the order quality
under asymmetric information is lower than the optimized quality of the centralized system. So the markdown money contract
can not coordinate the supply chain under asymmetric information. Finally, a numerical analysis is given to prove the results.