In this paper we study how performance requirements may improve the working of a distribution channel when the retailer is better informed about demand conditions than the manufacturer. Performance requirements means that the manufacturer and retailer agree to (1) have the manufacturer set...

Promotional tools such as rebates and coupons are usually seen as different ways of price discriminating among consumers. We focus on a different property of rebates: their ability to price discriminate within a consumer among her postpurchase states. Unlike price discrimination between...