Demand information sharing in Cournot-Bertrand model

We consider a Cournot-Bertrand competition with uncertain demand where firms receive private information about it. We prove that sharing information is a dominant strategy for the quantity -setting firm and not sharing is a dominant strategy for the price -setting firm. We uncover that the quantitysetting firm enjoys higher expected profits with more precise information and pools the information, whereas the price -setting firm's decision to pool the information depends on competition levels and a side payment. Consumers benefit from higher accuracy and pooling of information. (c) 2024 Elsevier B.V. All rights reserved.