search query: @author Peitz, M. / total: 9
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| Author: | Garella, P. Peitz, M. |
| Title: | Intermediation can replace certification |
| Journal: | Journal of Economics and Management Strategy
2000 : SPRING, VOL. 9:1, p. 1-24 |
| Index terms: | CERTIFICATION CONSUMERS VERTICAL INTEGRATION |
| Language: | eng |
| Abstract: | The author considers a market in which consumers do not have perfect information about product quality. Producers can perfectly reveal that a good is of high quality through certification, which entails socially wasteful costs. Firms can choose whether to sell through an intermediary or to sell independently (vertical integration). The author shows that multibrand retailing, which leads to a redistribution of profits but not to social costs, can fully or partially replace certification by signaling product quality. |
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