On the value of information sharing and cooperative price setting

Li Jiang; Zhongyuan Hao

doi:10.1016/j.orl.2014.07.002

On the value of information sharing and cooperative price setting

Li Jiang
, Zhongyuan Hao

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

10 Citations (Scopus)

Abstract

We consider a setting of two firms that sell substitutable products under price competition. We show that private signals enable firms to improve market forecast and earn higher profits. Provided that their private signals are not perfectly correlated, firms can benefit from sharing signals with each other. This is irrespective of product substitutability. Moreover, information sharing is a strategic complement to cooperative price setting to improve the profit performance of firms.

Original language	English
Pages (from-to)	399-403
Number of pages	5
Journal	Operations Research Letters
Volume	42
Issue number	6-7
DOIs	https://doi.org/10.1016/j.orl.2014.07.002
Publication status	Published - 1 Jan 2014

Keywords

Information sharing
Nash bargaining
Price competition

ASJC Scopus subject areas

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

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10.1016/j.orl.2014.07.002

Cite this

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AB - We consider a setting of two firms that sell substitutable products under price competition. We show that private signals enable firms to improve market forecast and earn higher profits. Provided that their private signals are not perfectly correlated, firms can benefit from sharing signals with each other. This is irrespective of product substitutability. Moreover, information sharing is a strategic complement to cooperative price setting to improve the profit performance of firms.

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KW - Nash bargaining

KW - Price competition

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DO - 10.1016/j.orl.2014.07.002

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JO - Operations Research Letters

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On the value of information sharing and cooperative price setting

Abstract

Keywords

ASJC Scopus subject areas

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