Optimal quality and quantity provisions for centralized vs. decentralized distribution : market size uncertainty effects

• Main Authors: Liu, Yan, Shi, Hongyan, Petruzzi, Nicholas C.
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2019
• Subjects: DRNTU::Business::Marketing; OR In Marketing; Market Uncertainty
• Online Access: https://hdl.handle.net/10356/90788; http://hdl.handle.net/10220/48506
• Institution: Nanyang Technological University

We provide insights on how market size uncertainty affects the optimal quality (quantity) provision in distribution channels when consumers are heterogeneous in their willingness to pay for product quality. In this context, we denote the difference between the manufacturer’s optimal quality (quantit...