Coordination contract design for the newsvendor model

•We design contracts to coordinate the newsvendor setting with a supplier and a retailer under asymmetric demand information.•To characterize the structure of coordinating payment, we design mechanisms in a more general way by directly constructing payment schemes to satisfy incentive-compatibility and individual-rationality.•In the continuous case, we find that the set of coordinating contracts is restricted to special two-part tariffs where wholesale price equals unit production cost.•In the discrete case, contrary to expectation, linear wholesale price contracts achieve coordination.