Game-Theoretic Approach for Information Sharing

Abstract

This paper presents an integrated methodology to support decision making in cooperation through interorganizational information sharing. The methodology employs game-theoretic approach to determine whether it is advantageous to share information between two or three firms, each possessing one piece of information. While a firm in a two-firm situation has to decide either sharing nothing or sharing all, a firm in a three-firm situation has an additional decision to determine with which firm it should form coalition. A scope of this research focuses on two collaborative frameworks: 1) competition- cooperation and 2) co-opetition. Finally, examples are provided to illustrate how the methodology can be used in practice.