Who should handle retail? Vertical contracts, customer service, and social welfare in a Chinese mobile phone market - APPENDIX
نویسندگان
چکیده
Using data on mobile phone handset sales from a single retail store, we examine the impact of different retail responsibility designations and vertical contracts on seller service provision, firm profitability, and social welfare. During our sample, this store switched from retailer-managed retailing with linear pricing contracts to manufacturermanaged retailing with revenue sharing. We estimate consumer demand and manufacturer cost parameters. Demand estimates indicate a large positive shift that coincided with the vertical change, consistent with improved retail customer service. Welfare estimates suggest that consumers derived substantial surplus from the improved customer service in addition to that from lowered prices.
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