Journal of Shanghai University(Natural Science Edition)

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Signal Game in Establishing Trust between Enterprises in a Supply Chain

LIN Ying-hui   

  1. School of International Business and Management, Shanghai University, Shanghai 201800, China
  • Received:2006-06-20 Revised:1900-01-01 Online:2007-04-30 Published:2007-04-30
  • Contact: LIN Ying-hui

Abstract: Based on the famous game model of “second-hand bicycles", this paper analyzes the trust between enterprises within a supply chain. The result shows that separated equilibrium has the highest degree of trust. In order to realize the separated equilibrium, cost for entering the supply chain must be increased and the social system should be improved.

Key words: establishment of trust, inter-enterprise trust, signal game, supply chain

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