We examine a supply chain in which a manufacturer participates in a sealed-bid lowest price procurement auction through a distributor. This form of supply chain is common when a manufacturer is active in an overseas market without establishing a local subsidiary. To gain a strategic advantage in...

Conventional wisdom suggests that information sharing benefits at least one of the participants. However, we find that information sharing can be strategically detrimental to both members in a vertical-Nash supply chain. Comparative statics show that each supply chain member׳s beneficial areas...