Sharing Demand Information Under Simple Wholesale Pricing

Abstract

We investigate a retailer’s incentive in sharing private demand information with a manufacturer under a linear wholesale price contract. We present a summary of the analysis and the main results of several existing models for the following manufacturer-retailer relationships: one-to-one, two competing chains, one-to-many, and two-to-one. By synthesizing the major findings of these models, we provide a common framework for understanding the impact of some key drivers on the retailer’s information sharing decision. We also illustrate the basic methodology for analyzing related models.