Abstract: The non-reference price effect model is used as the benchmark model to explore the impact of the reference price effect on the choice of retailer information sharing strategies in the dual-channel supply chain. The study finds that retailer has no incentives to share demand information with manufacturers when the reference price effect is not considered, which is consistent with the traditional wisdoms. When the reference price effect is considered, the retailer may share demand information with the manufacturer in the dual-channel supply chain. In particular, if the competition between the channels is weak and the reference price effect is large, the retailer has an incentive to share demand information with the manufacturer; otherwise, the retailer still has no incentive to share demand information with the manufacturer. In addition, no matter whether the reference price effect is considered or not, the profit of the manufacturer increases as soon as it obtains demand information from the retailer.

Key words: reference price effect, information sharing, dual-channel supply chain