The Effects of Asymmetric Market Information on Two-Echelon Supply Chain in Spot Market

This paper studies the effects of retailer´s information-superiority on participant´s profit in the existence of spot market. Two cases considered: manufacturer knows retailer´s information-superiority and manufacturer does not know retailer´s information- superiority. Our theoretical analysis and numerical experiments suggest that the appearance of spot market benefits retailer and system, but damages manufacturer. When manufacturer knows that retailer has better information, improved retailer´s market-knowledge always benefits manufacturer and the system, but hurts the retailer himself. Whereas when manufacturer does not know retailer´s information-superiority, improved retailer´s market-knowledge greatly benefits the retailer and system, but decreases manufacturer´s profit.