With a signaling game or a screening game actions occur sequentially
so information can be revealed through the observation of actions. There
also exist games with private information that do not involve signaling
or screening. Consider the capacity allocation game studied by Cachon
and Lariviere (1999). A single supplier has a finite amount of capacity.
There are multiple retailers, and each knows his own demand but not
the demand of the other retailers. The supplier announces an allocation
rule, the retailers submit their orders and then the supplier produces and
allocates units. If the retailers’ total order is less than capacity, then
each retailer receives his entire order. If the retailers’ total order exceeds
capacity, the supplier’s allocation rule is implemented to allocate
the capacity. The issue is the extent to which the supplier’s allocation
rule influences the supplier’s profit, the retailer’s profit and the supply
chain’s profit.