Supply Chain Competition with Information Sharing

Abstract:

Given the case of two competing supply chains each consisting of one manufacturer and one retailer, we explore whether the retailers should share the market demand information they know with their manufacturers when the manufacturers do not know the same specific demand information. We also determine the optimal pricing policy and total profit for the retailers when each chain either shares or does not share market demand information. We find that sharing information is always more profitable for both retailer and supply chain.

• Periodical: Key Engineering Materials (Volume 486)
• Pages: 309-312
• DOI: https://doi.org/10.4028/www.scientific.net/KEM.486.309
• Online since: July 2011
• Authors: Rong Yao He, Zhong Kai Xiong, Yu Xiong
• Keywords: Information Asymmetry, Information Sharing, Pricing Competition, Supply Chain Competition

References

[1] Lode Li: Management Science, Vol. 48(2002), pp.1196-1212.

[2] Informationonhttp://www-bcf.usc.edu/~dukes/Papers/Dukes9_InfoSharing_MktSci_08.pdf

[3] Esther Gal-Or and Tansev Geylani: Marketing Science, Vol.27 (2008), pp.642-658.

[4] Albert Y. Ha and Tong, S.L: Management Science, Vol.54 (2008), pp.701-715.

[5] Vives, X: MIT Press, Cambridge, MA. (1999)