Helfrich, Magdalena; Herweg, Fabian - 2017 - This version: August 14, 2017
We provide an explanation for a frequently observed vertical restraint in ecommerce, namely that brand manufacturers …-quality product and limits the wholesale price a brand manufacturer can charge. If, however, the branded product is not available … price is salient in the store, this aligns the retailer's incentives with the brand manufacturer's interest to make quality …
