Research Of Supply Chain Information Sharing Mechanism Based On Strategic Competition Game

An accurate grasp of market demand is undoubtedly an important factor for enterprises to gain a competitive advantage. Enterprises often strategically use their informational advantage to control the direction of competitors’ decision-making in the process of game in order to indirectly influence the information flow, logistics, capital flow, which will make themselves get optimal profits. Meanwhile, competitors could also strategically feedback decisions to avoid failure when they realize the information may be concealed, distorted. In addition, more and more products have a variety of cost price and different sources in the operation of supply chain and in the competitive market. The cost advantage is also one of the most important baselines in the competition for terminal enterprises in supply chain. Therefore, the study of the motivation of information sharing under cost difference and the way that information is shared is the problem to be solved and is of practical significance.The reverse derivation method is used to discuss the strategy of information sharing for two terminal enterprises including the homegrown enterprise and the enterprise wholesaling products from upstream in the situation where market information and cost are asymmetric for members in supply chain. The strategy includes the enterprises of information advantage decide whether to share information and how to share information; how the enterprises of information disadvantage decide the order quantity according to the market information revealed by the competitor; how the members from upstream supply chain decide wholesale price to control the situation of game of the entire supply chain and make the downstream retailers more proactive in competition.Firstly, based on behavior characteristic of the ones receiving information in supply chain, the definition of information sharing and related assumptions are given. The problems of decision making faced by all members of the supply chain and the factors to be considered are also analyzed. Secondly, the process of game between large retailers and small retailers is studied in two situation where information is not shared, which reveals the principle of information sharing of supply chain under asymmetric information. Then, under the premise that large retailers will always share information, the decision model based on information sharing by signal transmission is built. The ordering strategy and benefits of both large retailers and small retailers are discussed in the separating equilibrium and pooling equilibrium. on this basis, the strategy used by large retailers choosing the way information is shared for their own interests is studied.Besides, the strategies of large retailers and small retailers when the information sharing take places under asymmetric information are further studied. Lastly, the influence of cost differenceon the strategy of information sharing in supply chain is studied when the manufacturer affect the cost of large retailers and small retailers through wholesale prices. Research shows that the strategies chosen by large retailers are related to the market: The big retailers are inclined to share information in the low market type to make competitors reduce order quantity; the large retailers still choose to share information to show competition advantage in the high market type if the market fluctuation is small, which will deter the intruders to some extent; when the market fluctuation is large, the information sharing is not selected because the additional gains from information sharing cannot offset the rent of information transmission, however, because in the low market type large retailers would choose to share information, so in this case, although the large retailers are forced to share information even they do not want to do that. And manufacturers influence the cost advantage of large retailers by making wholesale price, which will finally affect the strategies of information sharing in supply chain.We can come to the final conclusions by the way combining modeling with analysis of examples. What’s more, the built model is simulated numerically by Mathmatica to verify the conclusions, which can ensure the accuracy and applicability.