Ex post demand information sharing between differentiated suppliers and a common retailer
Hui Lei, Jingru Wang, Lusheng Shao, Honglin Yang
International Journal of Production Research | Taylor & Francis | Published : 2020
We consider ex post demand information sharing in a two-echelon supply chain in which two suppliers sell differentiated products through a common retailer. We model three scenarios of information sharing to characterise the conditions under which information sharing may benefit or hurt different players: (1) no supplier is informed; (2) only one supplier is informed; and (3) both suppliers are informed. We find that the retailer may voluntarily share the low demand information when the product differentiation and demand magnitude satisfy certain conditions. In contrast, the retailer has no incentive to share the high demand information, even though this information benefits the suppliers. To..View full abstract
Awarded by National Natural Science Foundation of China
The research is supported by the National Natural Science Foundation of China under Grant Nos. 71571065, 71790593 and 71521061.