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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

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1935-1682
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Volume 17, Issue 1 (Mar 2017)

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Information Acquisition in Vertical Relations

Pio Baake
  • Corresponding author
  • DIW Berlin, Mohrenstr. 58, 10117 Berlin, Germany
  • Email:
/ Andreas Harasser
  • DIW Berlin, Mohrenstr. 58, 10117 Berlin, Germany
  • Email:
/ Friederike Heiny
  • DIW Berlin, Mohrenstr. 58, 10117 Berlin, Germany
  • Email:
Published Online: 2017-03-01 | DOI: https://doi.org/10.1515/bejeap-2015-0211

Abstract

We analyse a simple supply chain with one supplier, one retailer and uncertainty about market demand. Focusing on the incentives of the supplier and the retailer to enhance their private information about the actual market conditions, we show that choices on information acquisition are strategic complements. While the retailer’s incentives are mainly driven by the information rent that he can earn, the supplier will choose to acquire information only if the retailer is rather well informed, even though the information is free of charge.

Keywords: asymmetric information; information acquisition; vertical relations

JEL Classification: D82; D83; D86

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About the article

Published Online: 2017-03-01


Citation Information: The B.E. Journal of Economic Analysis & Policy, ISSN (Online) 1935-1682, ISSN (Print) 2194-6108, DOI: https://doi.org/10.1515/bejeap-2015-0211.

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