IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v71y2025i10p8642-8669.html
   My bibliography  Save this article

Speed Matters: Limited Attention and Supply Chain Information Diffusion

Author

Listed:
  • Ling Cen

    (Chinese University of Hong Kong, Hong Kong)

  • Michael Hertzel

    (Arizona State University, Tempe, Arizona 85281)

  • Christoph Schiller

    (Arizona State University, Tempe, Arizona 85281)

Abstract

We develop a measure of the speed of firm-level information diffusion, study how it is affected by limited attention, and examine its effect on real corporate decisions. Using local flu epidemics as exogenous attention shocks, we show that inattention from dual-covering analysts and cross-holding institutions reduces the speed of information diffusion from customer to supplier stock prices. We find that the speed of information diffusion along the supply chain affects the price feedback effect for corporate investment decisions and facilitates coordination between customers and suppliers. Our findings demonstrate that coattention from key market participants affects information efficiency and generates real economic outcomes.

Suggested Citation

  • Ling Cen & Michael Hertzel & Christoph Schiller, 2025. "Speed Matters: Limited Attention and Supply Chain Information Diffusion," Management Science, INFORMS, vol. 71(10), pages 8642-8669, October.
    • Handle: RePEc:inm:ormnsc:v:71:y:2025:i:10:p:8642-8669
    DOI: 10.1287/mnsc.2023.00291
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2023.00291
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2023.00291?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:71:y:2025:i:10:p:8642-8669. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.