Dual-channel Supply Chain Under Asymmetric Information

The development of Internet and changes in consumer habits are changing the modern business world. More and more manufacturers began to open up online direct channels, using both online channel and traditional retail channel to sell products. The conflict between the online and retail channels follows the coexist channel model.Dual channel supply chain has been studied extensively and well understood. However, most of the prior literature has assumed the information structure to be symmetric in the dual channel supply chain, which is not true according to the practice. Considering the market share of direct channel and channel coefficients under conditions of asymmetric information, we constructed a signaling game model between manufacturer and retailers. The retailer distorts the order quantity downward to induce manufacturer to believe that the market size is small. By solving the model, we give manufacturer's belief, which she uses to decide the market size is big or small. At the same time we give the reseller's order quantity under different market size when the sale cost of direct channel changes. On this basis, this paper analyzed the manufacturer's wholesale price decisions according to the direct channel costs.Then we discussed the impact of the market share of direct channel and channel coefficients for manufacturers and retailers. Finally, we discussed the impact of information sharing on manufacturers and retailers benefits. In addition, we also carried out numerical experiments to reflect the model...