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Equilibrium Analysis of Dual-Channel Supply Chain Under Retailer's Greening Cost Information Asymmetry

Equilibrium Analysis of Dual-Channel Supply Chain Under Retailer's Greening Cost Information Asymmetry

Rofin T. M., Biswajit Mahanty
Copyright: © 2020 |Volume: 13 |Issue: 4 |Pages: 22
ISSN: 1935-5726|EISSN: 1935-5734|EISBN13: 9781799800774|DOI: 10.4018/IJISSCM.2020100101
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MLA

Rofin T. M., and Biswajit Mahanty. "Equilibrium Analysis of Dual-Channel Supply Chain Under Retailer's Greening Cost Information Asymmetry." IJISSCM vol.13, no.4 2020: pp.1-22. http://doi.org/10.4018/IJISSCM.2020100101

APA

Rofin T. M. & Mahanty, B. (2020). Equilibrium Analysis of Dual-Channel Supply Chain Under Retailer's Greening Cost Information Asymmetry. International Journal of Information Systems and Supply Chain Management (IJISSCM), 13(4), 1-22. http://doi.org/10.4018/IJISSCM.2020100101

Chicago

Rofin T. M., and Biswajit Mahanty. "Equilibrium Analysis of Dual-Channel Supply Chain Under Retailer's Greening Cost Information Asymmetry," International Journal of Information Systems and Supply Chain Management (IJISSCM) 13, no.4: 1-22. http://doi.org/10.4018/IJISSCM.2020100101

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Abstract

The purpose of this study is to investigate the impact of information asymmetry of retailer's greening cost on the performance of both the manufacturer and the retailer. The study considers a dual-channel supply chain comprising of a manufacturer and a retailer committed to green operations. The authors have employed sequential game theoretic model to derive the closed form expressions corresponding to the two cases under consideration, that is: (1) complete information and (2) asymmetric information. They have found that the sharing of greening cost information by the retailer can make both the manufacturer and the retailer better off in terms of profit. They have also found that the greening cost information sharing is all the more important when the greening cost efficiency is weak. The study helps retail managers to make a decision on whether to conceal or reveal the greening cost information with the upstream manufacturer.

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