Supply chain coordination with information sharing in the presence of trust and trustworthiness: a behavioral model
AbstractThe strategic use of private information causes efficiency losses in traditional principal-agent settings. One stream of research states that these efficiency losses cannot be overcome if all agents use their private information strategically. Yet, another stream of research highlights the importance of communication, trust and trustworthiness in supply chain management. The underlying work links the concepts of communication, trust and trustworthiness to a traditional principal-agent setting in a supply chain environment. Surprisingly, it can be shown that communication and trust can actually lead to increasing efficiency losses although there is a substantial level of trustworthiness.
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Bibliographic InfoPaper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 09006.
Length: 40 pages
Date of creation: Mar 2009
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-16 (All new papers)
- NEP-CTA-2009-05-16 (Contract Theory & Applications)
- NEP-SOC-2009-05-16 (Social Norms & Social Capital)
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- Pezeshki, Yahya & Baboli, Armand & Cheikhrouhou, Naoufel & Modarres, Mohammad & Akbari Jokar, Mohammad R., 2013. "A rewarding-punishing coordination mechanism based on Trust in a divergent supply chain," European Journal of Operational Research, Elsevier, vol. 230(3), pages 527-538.
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