The Impact of Information Sharing on the Effectiveness of Screening Contracts: A First Laboratory Experiment

Guido Voigt
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Guido Voigt: Otto-von-Guericke University Magdeburg

Chapter Chapter 4 in Supply Chain Coordination in Case of Asymmetric Information, 2011, pp 67-107 from Springer

Abstract: Abstract The following section analyses, if the strategic use of private information is observable in an experimental setting, and which role communication plays for supply chain coordination. Section 4.1 briefly introduces the relevant experimental work of supply chain coordination with contracts. Section 4.2 shows how the strategic lotsizing model can be implemented in a laboratory experiment. The results of the experiments are presented in Sects. 4.3–4.6. First, Sect. 4.3 investigates the impact of information sharing on the suppliers’ contract offers. Then, Sect. 4.4 analyzes the buyers’ contract choice behavior, answering the question if information revelation takes place via contract choices. In contrast, Sect. 4.5 evaluates the truthfulness of the buyers’ reports as well as the consistency between reports and contact choices. Afterwards, Sect. 4.6 shows the impact of the before-mentioned results on the overall supply chain performance. Finally, Sect. 4.7 summarizes the results and gives some managerial insights.

Keywords: Information Sharing; Screening Contract; Contract Choice; Supply Chain Performance; Self-selecting Contracts (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-642-20132-5_4

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DOI: 10.1007/978-3-642-20132-5_4

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