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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 …
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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 …
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