Firms Withhold Investment Info to Manipulate Prices and Rivals
The research looks at when a company shares or keeps secret details about cost-saving investments in an industry where different businesses are connected. By sharing or withholding this information, the company affects how much it costs for others to get their products (upstream firms) and how much its competitor can produce (rival firms). The study found that when products are very different, companies are more likely to hide their information to seem more aggressive to rivals. But when products are extremely different, sometimes they might share some info to make the cost of their supplies cheaper. Ultimately, the decision to share or keep quiet about their investments depends on how similar their products are to others in the market.