Sharing demand information in competing firms

Weixin SHANG, Huajiang LUO, Tian LI

Research output: Other Conference ContributionsPresentationPresentation

Abstract

We study two competing firms’ incentives to share demand information and their production timing strategies. One firm’s production time is fixed in her tradition of manufacturing previous product models. The other firm strategically chooses to produce before, simultaneously with, or after the routine firm. The two firms choose whether or not to disclose their private demand information, and then make quantity decisions based on available demand information either concurrently or sequentially. We find that both firms sharing information is the unique equilibrium outcome when the demand uncertainty is low, which is in stark contrast to the extant literature on horizontal information sharing with exogenous production timing.
Original languageEnglish
Publication statusPublished - 6 Jan 2019
EventThe 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World - City University of Hong Kong, Hong Kong
Duration: 5 Jan 20196 Jan 2019
http://www.cb.cityu.edu.hk/ms/pomshk2019/conferenceprogram.htm (Conference program)

Conference

ConferenceThe 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World
CountryHong Kong
Period5/01/196/01/19
OtherThe Tenth POMS-HK International Conference was organized by City University of Hong Kong from January 5 to 6, 2019. Under the theme Operations Excellence for a Better World, this conference intended to provide a platform for exchanging research ideas, industry practice, and managerial insights.
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SHANG, W., LUO, H., & LI, T. (2019). Sharing demand information in competing firms. The 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World, Hong Kong.