Information Exchange and Strategic Behavior in Supply Chains: Application to the Food Sector |
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| Authors: | Hamid Mohtadi Jean D Kinsey |
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| Institution: | Hamid Mohtadi is the corresponding author, professor, Department of Economics, University of Wisconsin, Milwaukee, WI 53201. This article was written when the first author was a visiting associate professor at the Department of Applied Economics and The Food Industry Center, University of Minnesota, St. Paul, MN 55108. Jean Kinsey is professor, Department of Applied Economics, and Co-Director, The Food Industry Center, University of Minnesota, St. Paul, MN 55108. |
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| Abstract: | Information technology (IT) facilitates information exchange between retailers and suppliers. Based on evidence from food industry, information strategies under uncertainty are analyzed, using game theory. Some key results are under certain conditions, retailers withhold valuable sales data from suppliers even if this means less supply coordination; a revealed equilibrium exists where suppliers learn retailers' market data despite retailers' withholding of such data; this leads either to full information convergence or, surprisingly, incomplete information convergence with some informational asymmetry left; retailers with greater market power and numerous suppliers are more inclined to share, rather than to withhold, information. |
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| Keywords: | food industry information IT strategy strategic behavior supply chains |
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