Supply chain contracts with endogenous information structure

In this paper we analyze supply chain contracts with endogenous information structure. Especially, we consider a supplier and a buyer during a single selling season. The supplier offers two wholesale-price contracts. one is no information gathering for the buyer, the other is that the buyer is induced to gather information with cost beta. We analyze the impact of information gathering on wholesale price and order quantity, and compare the profit of supplier and buyer in two different cases. Finally, numerical example is presented, seeking to compare results between the different contracts considered.