Information sharing in a supply chain for green products with supplier encroachment

This paper examines the motivation of a retailer to share demand information with suppliers of green products, who may establish direct sales channels. We construct a game model and draw some interesting conclusions by comparing the optimal decision variables and expected profit under different strategies. Conventional wisdom is that retailers don't actively share demand information with suppliers to protect their own interests. However, our conclusions suggest that when the cost of supplier invasion is at a certain threshold, retailers have an incentive to actively share demand information to stimulate supplier invasion and thus make themselves more profitable. In addition, we also found that when retailers do not share demand information, suppliers will choose to actively encroach only when the entry cost meets certain conditions, otherwise they will not encroach.