Independent Certification Agency for Supplier Selection under Incomplete Information Market

It is a strategic decision-making process to select suppliers in supplier management, especially under the circumnstance of incomplete information market. The relevant government agencies, various intermediary organizations and other independent certification agency can efficiently convey the related information from enterprise, which would facilitate the supplier selection. So a signaling game model is established after analyzing the bahavior of the purchasers and suppliers, and its separating quilibrium and pooling equilibrium is worked out and analyzed. The result shows that the efficient suppliers certified by authoritative independent certification agency would be encouraged and selected by the purchaser. And the speculative supplier has to give up for the prohibitive costs. So independent certification agency could give some package of criteria of the suppliers and convenience to supplier selection.