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Information Exchange and Strategic Behavior in Supply Chains: Application to the Food Sector

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  • Hamid Mohtadi
  • Jean D. Kinsey

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. Copyright 2005, Oxford University Press.

Suggested Citation

  • Hamid Mohtadi & Jean D. Kinsey, 2005. "Information Exchange and Strategic Behavior in Supply Chains: Application to the Food Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 582-599.
    • Handle: RePEc:oup:ajagec:v:87:y:2005:i:3:p:582-599
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2005.00749.x
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    Cited by:

    1. Hamid Mohtadi, 2008. "Information Sharing in Food Supply Chains," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(2), pages 163-178, June.
    2. Fawcett, Stanley E. & Magnan, Gregory M. & McCarter, Matthew W., 2005. "The Effect of People on the Supply Chain World: Some Overlooked Issues," Working Papers 05-0118, University of Illinois at Urbana-Champaign, College of Business.
    3. Martinez, Stephen W., 2007. "The U.S. Food Marketing System: Recent Developments, 1997-2006," Economic Research Report 55962, United States Department of Agriculture, Economic Research Service.
    4. Mohtadi, Hamid, 2005. "The Empirics of Information Sharing in Supply Chains: The Case of the Food Industry," Working Papers 14323, University of Minnesota, The Food Industry Center.

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