Pricing analysis in a retailer-led supply chain with asymmetric information

This paper studies the pricing issue in a two-echelon supply chain using the Stackelberg-game theory when the manufacturing cost information is asymmetric and the retailer plays the leader during the game. Theoretical analysis shows that under the deterministic linear demand curve, when knowing nothing about the manufacturing cost, the dominant retailer implementing a retailer-led-Stackelberg game[rS] would decrease the profit of all parties (the manufacturer, the retailer, and the channel) compared to the manufacturer-led-Stackelberg game[mS].