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Pricing and horizontal information sharing in a supply chain with capacity constraint
Authors:Jianghua Wu  Fan Jiang  Yuhong He
Institution:1. School of Business, Renmin University of China, Beijing 100872, China;2. Mihaylo College of Business and Economics, California State University, Fullerton, CA 92831, USA
Abstract:This paper aims to explore manufacturers horizontal information sharing strategy under competition. The model framework is based on a two-echelon supply chain composed of one upstream supplier and two downstream manufacturers with asymmetric capacity constraint. Analysis of the model establishes manufacturers’ information sharing strategies under different conditions and shows how supplier’s pricing decision can shape manufacturers’ information sharing incentives.
Keywords:Supply chain  Information sharing  Nash equilibrium  Capacity constraint
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