When do firms exchange information?

This paper further develops the standard modelling of information exchange between firms in the presence of demand uncertainty which applies to firms in new industries and insecure regions or markets. We replace the normal distribution of the random variables, commonly used because of its convenient mathematical properties, by an alternative one, namely a random variable with a binomial positive outcome. For the symmetric case, we confirm the results of the existing literature. However, for the non-symmetric case, we derive the new result that in the resulting Bayesian Nash equilibrium, the firms will disclose their information more often than they would under the standard modelling.