We analyze the information sharing incentives of firms in a decentralized environment
when firms face a stochastic demand. In order to do that, we develop a two stage model of
strategic network formation, which consists of cooperative network formation in the first
stage and noncooperative Bayesian Cournot competition in the second stage. Then we derive
pure strategy mixed cooperative and noncooperative equilibria that are stable and subgameperfect,
and characterize the equilibrium graph structure. Our main finding is that the
incentives of firms for information sharing may vary depending on whether the decision is
made in a centralized or a decentralized environment.