-forecast information. We show that the manufacturer's expected profit is convex in the retailer's forecasting accuracy: The manufacturer … benefits from selling to a better-forecasting retailer if and only if the retailer is already a good forecaster. If the … retailer has poor forecasting capabilities, then the manufacturer is hurt as the retailer's forecasting capability improves …

information by exerting costly forecasting effort. In such a setting, contracts play two roles: providing incentives to influence … the retailer's forecasting decision and eliciting information obtained by forecasting to inform production decisions. We … rebates, the retailer, manufacturer, and total system may benefit from the retailer having inferior forecasting technology …