Middlemen as guarantors of quality

摘要: Abstract We analyze an experience good model with producer moral hazard which is based on Shapiro ( Quarterly Journal of Economics , 1983, 98, 659–679). develop conditions under a will be sold through middleman instead being directly by the when selling costs may even increased presence middlemen. Middlemen help to alleviate problem dropping producer's good, and lowering her future sales, if not its claimed quality. The engages in this policing activity order maintain his own reputation as seller high quality goods.