Direct selling by suppliers improves system-wide information flow

Zhongyuan Hao; Li Jiang

doi:10.1016/j.orl.2019.04.008

Direct selling by suppliers improves system-wide information flow

Zhongyuan Hao, Li Jiang

Research output: Journal article publication › Journal article › Academic research › peer-review

5 Citations (Scopus)

Abstract

Consider a bilateral monopoly selling to a market with uncertain demand. The retailer has access to a demand signal. The supplier can add a direct channel, which grants it market access as well. The supplier and the retailer can acquire signals from each other with payments. We show that direct selling by the supplier improves information flow to realize system-wide information transparency, which has mixed effects on the profits for the retailer and the system.

Original language	English
Pages (from-to)	305-310
Number of pages	6
Journal	Operations Research Letters
Volume	47
Issue number	4
DOIs	https://doi.org/10.1016/j.orl.2019.04.008
Publication status	Published - Jul 2019

Keywords

Direct selling
Inference
Information sharing
Signaling

ASJC Scopus subject areas

Software
Management Science and Operations Research
Industrial and Manufacturing Engineering
Applied Mathematics

More information

10.1016/j.orl.2019.04.008

Cite this

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abstract = "Consider a bilateral monopoly selling to a market with uncertain demand. The retailer has access to a demand signal. The supplier can add a direct channel, which grants it market access as well. The supplier and the retailer can acquire signals from each other with payments. We show that direct selling by the supplier improves information flow to realize system-wide information transparency, which has mixed effects on the profits for the retailer and the system.",

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AB - Consider a bilateral monopoly selling to a market with uncertain demand. The retailer has access to a demand signal. The supplier can add a direct channel, which grants it market access as well. The supplier and the retailer can acquire signals from each other with payments. We show that direct selling by the supplier improves information flow to realize system-wide information transparency, which has mixed effects on the profits for the retailer and the system.

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KW - Information sharing

KW - Signaling

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Direct selling by suppliers improves system-wide information flow

Abstract

Keywords

ASJC Scopus subject areas

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