Showing papers on "Information sharing published in 1993"

Information sharing in credit markets

Abstract: We present a model with adverse selection where information sharing between lenders arises endogenously. Lenders' incentives to share information about borrowers are positively related to the mobility and heterogeneity of borrowers, to the size of the credit market, and to advances in information technology; such incentives are instead reduced by the fear of competition from potential entrants. In addition, information sharing increases the volume of lending when adverse selection is so severe that safe borrowers drop out of the market. These predictions are supported by international and historical evidence in the context of the consumer credit market. A LARGE BODY OF literature on credit markets has shown that asymmetric information may prevent the efficient allocation of lending, leading to credit rationing (e.g., Jaffee and Russell (1976), Stiglitz and Weiss (1981)) or to a wedge between lending and borrowing rates (e.g., King 1986)). In this literature informational asymmetries are taken to be exogenous: lenders fail to observe some relevant characteristic or action of potential borrowers and have no way of learning about it. In some countries, however, lenders can improve their knowledge about new customers by exchanging information with other lenders through information brokers, generally known as "credit bureaus." The latter collect, file, and distribute the information voluntarily supplied by their members, and operate on the principle of reciprocity: lenders who do not provide data are denied access to the bureau's files. In other countries, instead, these institutions do not exist. The literature offers no guide to identify the factors that lead to endogenous communication between lenders. This paper is an attempt to fill the gap. Information sharing is important for a number of reasons: it may increase the degree of competitiveness within credit markets (Vives (1990)), improve

Information technology, incentives, and the optimal number of suppliers

Abstract: Buyers are transforming their relationships with suppliers. For example, instead of playing off dozens or even hundreds of competing suppliers against one another, many firms are finding it more profitable to work closely with only a small number of "partners." In this paper we explore some causes and consequences of this transformation. We apply the economic theory of incomplete contracts to determine the optimal strategy for a buyer. We find that the buyer firm will often maximize profits by limiting its options and reducing its own bargaining power. This may seem paradoxical in an age of cheap communications costs and aggressive competition. However, unlike earlier models that focused on coordination costs, we focus on the critical importance of providing incentives for suppliers. Our results spring from the need to make it worthwhile for suppliers to invest in "noncontractibles" such as innovation, responsiveness, and information sharing. Such incentives will often be stronger when the number of competing suppliers is small. The findings of the theoretical models appear to be consistent with observations from empirical research which highlight the key role of information technology in enabling this transformation.

Information Sharing in Oligopoly: The Truth-Telling Problem

Abstract: While under some circumstances information sharing in oligopoly may be beneficial, the literature ignores the possibility of strategic information sharing by assuming verifiability of data. I endogenize the incentives for truthful information sharing and prove that if firms have the ability to send misleading information, they will always do. To overcome this problem I introduce a (costly) mechanism through which the firm will, in its own best interest, reveal the true value of its private information, even though outside verification is impossible. I show that in some cases benefits from information sharing exceed the signalling costs, while in other cases the reverse is true. The fact that I model a two-sided signalling enables me to mitigate the signalling-cost problem. Rather than burning money, oligopolistic rivals may exchange transfer payments, thereby significantly reducing signalling costs.

Where did you put it? Issues in the design and use of a group memory

Abstract: Collaborating teams of knowledge workers need a common repository in which to share information gathered by individuals or developed by the team. This is difficult to achieve in practice, because individual information access strategies break down with group information—people can generally find things that are on their own messy desks and file systems, but not on other people's. The design challenge in a group memory is thus to enable low-effort information sharing without reducing individuals' finding effectiveness. This paper presents the lessons from our design and initial use of a hypertext-based group memory, TeamInfo. We expose the serious cognitive obstacles to a shared information structure, discuss the uses and benefits we have experienced, address the effects of technology limitations and highlight some unexpected social work impacts of our group memory.

A General Model of Information Sharing in Oligopoly

Abstract: Under which circumstances do oligopolists have an incentive to share private information about a stochastic demand or stochastic costs? We present a general model which includes virtually all models of the existing literature on information sharing as special cases. The analysis reveals that in contrast to the apparent inconclusivenss of previous results some simple principles determining the incentives to share information can be obtained. Most existing results are generalized and some interpretations are corrected, leading to a single general theory of the topic.

Coordination of joint tasks in organizational processes

Abstract: Organizational productivity can be maximized by creating, using and maintaining structural and dynamic configurations of multi-participant interaction. The paper highlights a number of areas for consideration that arise when studying coordination within an organizational setting. The focus of the analysis is on two types of tasks: decision-making tasks and routine office processes. The paper argues that a number of (conflicting) options exist when developing the coordination aspects of group systems; they are classified across the following axes: specification and implementation of coordination; use of synchronous and asynchronous working phases; information exchange and information sharing; support of sequential and concurrent processing; support of negotiation and conflict resolution; support of analytical modelling; and description of the organizational environment.

Analysis of interorganizational information sharing

Abstract: Recent years have observed a number of interorganization information systems and electronic data interchanges through which multiple organizations share information. This article studies the incentives to share information when two or more companies are involved in a supplier‐buyer relationship. We propose two models through which we pursue the question: What type of information will be shared? In the first model, we study the incentives for a production company to share its queue information with its customers. The release of queue information has a trade‐off between loss of profits and efficient flow control, but we show that the supplier will share information under certain regularity conditions. The second model studies the incentive for a supplier to share price information with its buyer. As the buyer makes its quantity decision based on the price information fed by the supplier, the latter has to choose between keeping the communication channel alive for good news and benefiting from the buyer's un...

4. Market Games with Asymmetric Information : Verification and the Publicly Predictable Information Core

Abstract: For cooperative (NTU) games generated by finite exchange economies with asymmetric information about comrnon payoff-relevant states of the world, private information use is equivalent to the publicly predictable information sharing rule. ~ This leads to balanced games which therefore have nonempty cores as well as Nash verifiability of a coalition member's ex ante cdntingent net trades. Conditions yielding Nash and strong verifiability for more general information sharing rules are also provided. In this way, a class of market games with partial commitment that are classified between cooperative and noncooperative games can be studied.

Managing Interdependencies among Objects in Federated Databases

Abstract: An important issue to be addressed in supporting information sharing in federated database systems is the management of the inherent interdependencies among data in different databases. In particular, data in such databases can (implicitly and/or explicitly) exhibit various forms of interdependence, such as existence, structural, and functional/behavioral dependencies. The ability to capture and systematically support such intrinsic interdependency relationships is essential. In this paper we analyze these interdependencies in the context of an object-oriented database federation, and describe how object-oriented concepts and mechanisms can be employed to accommodate them.

Distributed cooperation in integrated information systems

Abstract: Cooperation is the organizational motivation behind computer networks. In these networks, information systems progress from their traditional file cabinet role to become advanced communications media that enable cooperation across boundaries of space and time. The Third ICIS Workshop, held at Dagstuhl Castle, Germany, in April 1992 addressed the question: what does this observation entail for computer science research, practice, and education? Research implications. Cooperation technology provides interfaces between people rather than between humans and machines. The simplistic distinctions of CSCW research in the 1980’s (synchronous vs. asynchronous, local vs. distributed, message passing vs. information sharing) detract from the central goal that coordination should not get in the way of human interaction. On the one hand, CSCW operates in a coherent organizational and technological framework. Real-time group interfaces must be embedded in process-oriented repositories for long-term cooperation; change management is the crucial research issue. On the other hand, CSCW must be enriched with domain information. Studies of the usage and organizational embedding of information technology cannot be delegated to the social sciences alone because they do not have the answers either. Business implications. “Killer applications” that prove the value of CSCW beyond electronic mail and videoconferencing have yet to emerge. One suggestion is to develop theory and product ideas in the context of actual applications through direct links between researchers and users. A more vendor-oriented approach focuses on developing core technology on which application-specific services can be delivered. This latter infrastructure market, though important, is obviously much smaller; it is the services that pay back the investments. Educational implications. Curricula do not adequately reflect the changing role of computer scientists in the workplace. This is even now endangering the traditionally good position of computer science graduates on the labor market. In accordance with the market shares above, there must be a stronger component of application experience and students must be explicitly taught to work in interdisciplinary teams. Since curricula are already very full, this implies that some traditional areas of computer science may have to be reduced — a painful but necessary process.

Sharing information, sharing responsibility: helping health care consumers make informed decisions.

Abstract: The purpose of this paper is to discuss the need to provide access to information to support informed medical decision-making and to describe a working model for delivering such information. We report the findings on the users of an independent health information service (n = 1083), including: who uses this type of service; the types of information requested; and, the benefits for individuals and health care organizations.

Information sharing: getting journals and books to developing countries.

Abstract: Doctors in the worlds poorest countries are not privy to the most up-to-date information about medicine science and technology because neither they nor libraries with which they are affiliated can afford to buy journals and books. This state of affairs exists often because donors from relatively rich countries are no longer willing or able to send money and free publications. Even when institutions publishers and individuals still want to help they do not know where or how to send the information in a useful and affordable way. Many donation and distribution schemes are in place but they have not been well publicized or coordinated in the past. The International Network for the Availability of Scientific Publications (INASP) was established in 1992 to support and strengthen existing programs involved in the publication distribution exchange and donation of books journals and related materials and to encourage new initiatives which will increase the availability of quality scientific literature. Established by the International Council of Scientific Unions and supported by the European Commission and UNESCO the network has already compiled an extensive computerized database. This paper details institutions which have expressed a desire for academic assistance and offers information on organizations which can provide support. Some projects provide information free of charge while others provide it at affordable prices.

Towards an infrastructure for product data technology

Abstract: Product Data Technology aims at the establishment of an infrastructure to communicate product data between CIME applications within and between industrial enterprises. To establish this infrastructure, a need exists for standards for data exchange and data sharing, such as the emerging ISO standard STEP. The development of standards should be supported by a collaboration of R&D projects in the CIME area, and should be implemented through a joint effort of end user industry and IT industry. This is the aim of the Product Data Technology Advisory Group (PDTAG), an advisory board of DGXIII of the CEC. Information dissemination and support to industry will be realised by a collaborative effort of European PDT centres called EPDEN (European Product Data Exchange Network). Esprit project 6876 PISA (Platform for Information Sharing by CIME Applications) contributes to this infrastructure by improving the existing methodology for information modelling and implementation. The project will develop tools for information and product/process modelling, and general servers to support the communication between CIME applications, all based as much as possible on emerging standards for open systems integration.

The critical phase inspection process: a benchmarking study in search of industries' best practices.

Abstract: Benchmarking is the orderly process of measuring one's own products, services, and practices against those of companies recognized as leaders. Eli Lilly and Company's Quality Assurance Department formed the Critical Phase Inspection Team to benchmark the processes for selecting and conducting critical phase inspections and reporting inspection findings. The team developed a telephone survey that was conducted with 33 other quality assurance units across the country. Analysis of the phone survey responses resulted in the identification of 5 quality assurance units that we felt could provide valuable information to us on these activities. Site visits to these companies were arranged and information was shared. We present here the analysis and results of our benchmarking endeavor. Through the information sharing involved in the benchmarking process, namely, the telephone surveys and the site visits, fresh ideas emerged and new acquaintances were made. Comparisons and adaptations of our methods with others in the quality assurance business will lead us to breakthrough improvements that will allow us to improve our current processes.

Object Discovery and Unification in a Federated Database System

Abstract: A key challenge in sharing-oriented information management environments, such as networks of heterogeneous, autonomous database systems, is to provide capabilities to allow information units and resources to be flexibly and dynamically combined and interconnected, while at the same time preserving the investment in and the autonomy of each individual component. The research described here specifically focuses on two key aspects of this: (1) how to discover the location and content of relevant, nonlocal information units, and (2) how to identify and resolve the semantic heterogeneity that exists between related information in different database components. Our approach serves as a basis for the sharing of related concepts through partial meta-data (conceptual schema) unification without the need for a global view of data. We demonstrate and evaluate our approach using the Remote-Exchange experimental prototype system [5], which supports information sharing and exchange from the above perspective.