We consider a two-stage game with an option to analyze disclosures in the first stage, and a coordination game in the second stage. Decision makers are assumed to be heterogeneous in their ability to comprehend disclosures—sophisticated players are likely to comprehend disclosures, while...

Channel coordination using contracts is a topic that commanded a great deal of attention in the supply chain management literature. Several recent studies that tested the performance of coordinating contracts in the laboratory found that they fail to coordinate channels, and a major reason for...