Journal of Systems Engineering and Electronics ›› 2009, Vol. 31 ›› Issue (9): 2141-2145.

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Product differentiation and information sharing under supply chain competition

YANG Dao-jian, QI Er-shi   

  1. School of Management, Tianjin Univ., Tianjin 300072, China
  • Received:2008-07-30 Revised:2009-04-01 Online:2009-09-20 Published:2010-01-03

Abstract: Product differentiation and information sharing in two competing supply chains,each consisting of one manufacturer and one retailer,are studied based on game theory.Information sharing within a supply chain requires the retailer to share its market demand information with the manufacturer.The equilibrium of supply chain competition is investigated according to the status of information sharing in each supply chain in three different situations.Then,the impact of product differentiation on information sharing value is analyzed.Results show that product differentiation will influence supply chain overall profit and information sharing value.With the increase in degree of product differentiation,the value of information sharing tends to be insignificant.

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