Vertical contracts between manufacturers and retailers often aim to
A)Prevent the manufacturer from upstream price discrimination
B)Reward the retailer for undertaking the risk inherent in introducing a new product
C)Serve as a "signal" of the retailer's belief of the likely success of his product
D)All of the above

Question

​Vertical contracts between manufacturers and retailers often aim to
A)​Prevent the manufacturer from upstream price discrimination
B)Reward the retailer for undertaking the risk inherent in introducing a new product
C)Serve as a "signal" of the retailer's belief of the likely success of his product
D)​All of the above

Quizplus · Accepted Answer

Vertical contracts often include incentives or rewards for retailers to compensate them for the risks they take when introducing new products, such as uncertain demand or the need for promotional efforts.

​Vertical Contracts Between Manufacturers and Retailers Often Aim to

Vertical Contracts Between Manufacturers and Retailers Often Aim to