To Reveal or Not to Reveal: Secrecy in Supply Chain Management

Given uncertain market conditions, electronic firms that outsource production to suppliers face a trade-off between revealing too much about their quantity decisions to competitors, thereby losing profits to well-informed second movers, and revealing too little, thus failing to signal quantity commitments. In full disclosure (FD) and non-disclosure (ND) scenarios, the relative informedness of the second mover and the supplier’s incentive …