Comment Baake von Schlippenbachx

QualityUncertaintyyin Vertical RelationsComments byJacques CrémerBackground: riserisein productoductfailuriluresthattinvolveesubssubstanttialialsafetyand healthissues.Background: riserisein productoductfailuriluresthattinvolveesubssubstanttialialsafetyand healthissues.Issue: "consumersattributtributequalitydeffeectsctsmainlyto the labelslabels of final products".Background: riserisein productoductfailuriluresthattinvolveesubssubstanttialialsafetyand healthissues.Issue: "consumersattributtributequalitydeffeectsctsmainlyto the labelslabels of final products".Model: a model to seehow downstreamfirmcancontrol qualilityof upstreamsupplierUDUU• Variable costs = 0. • Two typypes: and  θ . • Probability of  θ :. • Cost of effort,,.U• Variable costs = 0. • Two typypes:  θ and  θ .  • Probability of  θ :. • Cost of effort,,.U• Variable costs = 0. • Two typypes:  θ and  θ .  • Probability of  θ :. • Cost of effort,,.Exogenous EndogenousU• Variable costs = 0. • Two typypes:  θ and  θ .  • Probability of  θ :  ρ(,e θ). • Cost oof eoeffort,t,.U• Variable costs = 0. • Two typypes: θ and  θ .  • Probability of  θ :  ρ(,e θ). • Cost ofof effortt,, cece(). U• Variable costs = 0. • Two typypes:  θ and  θ .  • Probability of  θ :  ρ(,e θ). • Cost ofof effort, cece(). WhWhythischhioiceoff modldeliisation?Whatare the consequencesD• DiDistriibbuttes bbtothh  proddtucts and coordinates prices •DdDemand fifunctions: X (prices; θ ) ...