Question Completion Status: UESTION1 Vertical contracts between manufacturers an
ID: 1122566 • Letter: Q
Question
Explanation / Answer
1) The answer is A-) prevent the retailers from defeating from upstream price discrimination through arbitrage.
a verical contracts between manufacturers and retailer is a strategy of contracting in their pricing strategies on a differentiated product market to be introduced. This contribution allows price-cost margins to be recovered from estimates of demand parameters both under linear pricing models and two part tariffs. basicall it a pricing strategy or a contract between to prevent the mechanism of price discrimination done by manufacturer.s
2) please upload it again. it against chegg policy. chegg policy to answer only 1 question... still i am giving you an aswer for this , - A- ) benefits to consumers and manufacturers but hurt the retailers.
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