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 ) ...