GARELLA, Paolo Giorgio; PEITZ, Martin - Dipartimento di Economia, Management e Metodi … - 2006
observes firm B's quality choice but consumers do not. Hence, firm B is subject to a moral hazard problem which can potentially … be solved by firm A. Firm A can accept or reject to form an alliance with firm B, which is observed by consumers. If an … alliance is formed, firm A implicitly certificies the rival's product. Consumers infer that firm B is a competitor with high …