Loading...
Attention to online sales : The role of brand image concerns
Title / Series / Name
Publication Volume
Publication Issue
Pages
Authors
Editors
Keywords
General Business,Management and Accounting
Economics and Econometrics
Strategy and Management
Management of Technology and Innovation
Economics and Econometrics
Strategy and Management
Management of Technology and Innovation
URI
https://hdl.handle.net/20.500.14018/27601
Abstract
We provide a novel intuition for why manufacturers restrict their retailers' ability to resell brand products online. Our approach builds on models of salience-driven attention according to which price disparities across distribution channels guide a consumer's attention toward prices and lower her appreciation for quality. Absent vertical restraints, therefore, one of two salience distortions—a quality or a participation distortion—can arise in equilibrium. We show that, by ruling out both distortions, vertical restraints on online sales can be socially desirable but can also hurt consumers through higher retail prices. We thereby identify a novel trade-off between efficiency and consumer surplus.
Topic
Publisher
Place of Publication
Type
Journal article
Date
2022-02-01
Language
ISBN
Identifiers
10.1111/jems.12449