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 …

an event study framework to show that after a store brand introduction, both the number and prices of retailer national … brand products increase. Second, I develop a structural model of upstream vertical interaction between manufacturers and …

plays an important role in determining both behaviors. Among economic factors, the most important driver of store brand … usage is perceived quality, and the most important driver of national brand deal usage is perceived savings. We also find a … negative intrinsic relationship between store brand and national brand deal usage. Overall, our results suggest a competitive …