Shoppers in wholesale clubs are usually more sensitive to the quality of the products. Because not all dissatisfied customers choose to return the item, the wholesale club can initiate a quality recall in order to maintain its brand value and reputation. With quality recalls, customers are...

This paper introduces a new motivation for information sharing in decentralized supply chains - as a mechanism to achieve truthful information sharing and to reduce signaling costs. We study a two-echelon supply chain with one manufacturer selling a homogeneous product to n price-setting...