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The Empirics of Information Sharing in Supply Chains: The Case of the Food Industry

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  • Mohtadi, Hamid

Abstract

Using the Supermarket Panel Data gathered by The Food Industry Center at the University of Minnesota, the behavior of food retailers is examined in their adoption of Information Technologies that facilitate information exchange with suppliers. Using a theoretical framework developed by Mohtadi and Kinsey (MK) (2004) the predictions of that paper are examined. Logistic Regressions based on Maximum Likelihood Estimation support the hypothesis that food retailers with greater market power and numerous suppliers are more inclined to share, rather than to withhold, sales information. Stock-outs play a key role in the process as well. Finally, the structure of the market plays an interesting role in the type of information sharing platforms that the retailers adopt.

Suggested Citation

  • Mohtadi, Hamid, 2005. "The Empirics of Information Sharing in Supply Chains: The Case of the Food Industry," Working Papers 14323, University of Minnesota, The Food Industry Center.
  • Handle: RePEc:ags:umrfwp:14323
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    1. Srinagesh Gavirneni & Roman Kapuscinski & Sridhar Tayur, 1999. "Value of Information in Capacitated Supply Chains," Management Science, INFORMS, vol. 45(1), pages 16-24, January.
    2. Rey, Patrick & Tirole, Jean, 1986. "The Logic of Vertical Restraints," American Economic Review, American Economic Association, vol. 76(5), pages 921-939, December.
    3. Raith, Michael, 1996. "A General Model of Information Sharing in Oligopoly," Journal of Economic Theory, Elsevier, vol. 71(1), pages 260-288, October.
    4. Dooley, Frank J. & Roucan, Maud & King, Robert P., 2004. "Ecr And The Importance Of Collaboration For Supermarkets," 2004 Annual meeting, August 1-4, Denver, CO 20368, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Multiproduct Firms, Product Differentiation, and Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Fangruo Chen, 1998. "Echelon Reorder Points, Installation Reorder Points, and the Value of Centralized Demand Information," Management Science, INFORMS, vol. 44(12-Part-2), pages 221-234, December.
    7. Jean Kinsey, 2000. "A Faster, Leaner, Supply Chain: New Uses of Information Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1123-1129.
    8. Lode Li, 1985. "Cournot Oligopoly with Information Sharing," RAND Journal of Economics, The RAND Corporation, vol. 16(4), pages 521-536, Winter.
    9. Gal-Or, Esther, 1985. "Information Sharing in Oligopoly," Econometrica, Econometric Society, vol. 53(2), pages 329-343, March.
    10. King, Robert P. & Park, Timothy A., 2002. "Modeling Scale Economies In Supermarket Operations: Incorporating The Impacts Of Store Characteristics And Information Technologies," 2002 Annual meeting, July 28-31, Long Beach, CA 19881, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Hamid Mohtadi & Jean D. Kinsey, 2005. "Information Exchange and Strategic Behavior in Supply Chains: Application to the Food Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 582-599.
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    Industrial Organization;

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