A game theoretic seller-buyer model in presence of asymmetric information

Nowadays, one of the most important issues in economic and game theory is information. The most important idea in this area is asymmetric information, its effect on equilibrium of the games defined for these problems. In this paper, the effect of asymmetric information on supply chain between sellers and buyers is surveyed. In real cases, the sellers do not inform the buyers about the quality of their goods and this may have bad effect on the buyer’s future decisions and adverse selection may happen. In this paper, for the first time relations between buyers and sellers in a supply chain in four real cases is surveyed and the equilibrium is happened finally. In many cases in presence of asymmetric information, the competitive outcome is not Pareto optimal