Impact of quality decisions on information sharing with supplier encroachment

This study examines a retailer’s decision to share market demand information in supply chain wherein supplier sells product with certain level of quality retailer, who then resells it the end consumer. It also considers whether should establish direct selling channel by incurring fixed entry cost compete retail channel. Although conventional wisdom indicates that retailer may voluntarily disclose under ex-ante encroachment, our results show how and why encroaches on quality. Specifically, findings reveal sharing is beneficial when coefficient low relatively low, even encroachment supplier. Moreover, prefer if high, non-encroachment. Interestingly, we found prefers encroach shares moderate. Further, has higher incentive compared These are sharp contrast extant literature.