' contracts eliminated by market force; however, the downstream retailer prefers the wholesale price only contract because it … leaves more surplus (than a coordinating contract) that the retailer can get. This paper addresses the question: Under what … may prefer the same 'quantity discount' contract, thereby eliminating the conflicts of interests that otherwise typify …

), Raith (2003), and Piccolo, D'Amato, and Martina (2008)). Our model differs from these papers in the type of contract that we …