publication . Article . Other literature type . 2008

Contracting and Information Sharing Under Supply Chain Competition

Name: Contracting and Information Sharing Under Supply Chain Competition
Keywords: Management Science and Operations Research, Strategy and Management, supply chain competition, incentive contracts, asymmetric information, information sharing

Shilu Tong; Albert Y. Ha;

Open Access

Published: 01 Apr 2008 Journal: Management Science, volume 54, pages 701-715 (issn: 0025-1909, eissn: 1526-5501,

Publisher: Institute for Operations Research and the Management Sciences (INFORMS)

Summary

Abstract

We investigate contracting and information sharing in two competing supply chains, each consisting of one manufacturer and one retailer. The two supply chains are identical, except they may have different investment costs for information sharing. The problem is studied using a two-stage game. In the first stage, the manufacturers decide whether to invest in information sharing. In the second stage, given the information structure created in the first stage, the manufacturers offer contracts to their retailers and the retailers engage in Cournot competition. We analyze the game for two different contract types. For the case of contract menus, a supply chain that ...

doi: 10.1287/mnsc.1070.0795

Subjects

free text keywords: Management Science and Operations Research, Strategy and Management, supply chain competition, incentive contracts, asymmetric information, information sharing, Oligopoly, Information asymmetry, Supply chain, Industrial organization, Economics, Microeconomics, Information sharing, Strategic dominance, Value of information, Information system, Cournot competition

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