Fogelman College of Business and Economics
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MIS Professor Publishes Article in Decision Support Systems

For release:  December 14, 2012

Dr. Ling Xue, Assistant Professor in Management Information Systems, co-authored an article in the December 2012 issue of Decision Support Systems journal that presented the impact of consumer learning on the firms' marketing efforts and revenue sharing strategies in a supply chain that sold an innovative product to consumers over multiple periods. Both the supplier and the retailer exerted marketing efforts to influence consumers' beliefs about the product and improved the product demand. Because the supplier and the retailer were independent entities with self-interested objectives, double moral hazard existed in the supply chain. Dr. Xue found that the supplier and retailer exerted more marketing efforts in the presence of consumer learning but the marketing efforts decreased as consumers learned more about the product. He also examined the revenue-sharing strategies and found that suppliers shared more revenue with the retailer when they cooperated for a longer time horizon. The total profit of the supply chain was higher when there was information asymmetry between the supplier and retailer. This finding suggests that information sharing will be beneficial in order to improve supply chain coordination.

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Last Updated: 12/14/12