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Only retailer 1 reveals his private information to the manufacturer.
In other words, the manufacturer can acquire information from the retailer 1, if retailer 1 is efficient enough.
Now, we assume that retailer 1 decides to share information with the manufacturer and the manufacturer has full knowledge of the retailer 1's cost structure (eta_{1}).
Then retailer 1 sells the products 1 and 2 to the customers.
Therefore, we first assume that retailer 1 decides to share his private information with the manufacturer.
Under partial information sharing, retailer 1 discloses his information to the manufacturer, while retailer 2 does not.
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