Hiding or sharing? Technology upgrade, technology spillover and information asymmetry

One giant manufacturer (M1) upgrades a common supplier’s production technology through investments, while the supplier (it), holding spillover information privately, may spill upgraded over to rival (M2). This study examines whether should share of with M1. We first find hurts not only M1 but also and M2, when cost is high investment low at level real degree, no matter shares or not. As such, it be unwise for implement unprofitable M2 take free ride conditionally. Furthermore, can receive more payoffs by spilling under certain conditions, (hide) information, such sharing (hiding) strategy create “win-win-win”’ outcome three players, if (high)-spillover type degree falls into range.