We investigate vertical information sharing in a bilateral monopoly. The retailer orders from the supplier and sells in a market with uncertain demand. The retailer has access to a series of correlated demand signals and the supplier can offer payments to acquire signals from the retailer. We establish the sufficient condition to sustain vertical information flow, and examine the implications of information transaction procedure for system performance.
- Bilateral monopoly
- Information sharing
- Nash equilibrium
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics