We study the pricing problem between two firms when the manufacturer’s willingness to pay
(wtp) for the supplier’s good is not known by the latter. We demonstrate that it is in the
interest of the manufacturer to hide this information from the supplier. The precision of
the information available to the supplier modifies the rent distribution. The risk of
opportunistic behaviour entails a loss of efficiency in the supply chain. The model is
extended to the case of a supplier submitting offers to several manufacturers. Some
managerial insight through a numerical illustration is provided.