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Retail Contracting: Theory and Practice

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Author Info
Lafontaine, Francine
Slade, Margaret E

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Abstract

The authors summarize a number of regularities that arise in the empirical literature on contractual relationships between manufacturers and their exclusive resellers. They do this using studies of traditional and business-format franchise relationships as well as studies of sales-force-integration decisions. Some of the patterns that the authors uncover are consistent with a standard incentive-cum-insurance theory of organization, while others are not. They briefly review some theoretical extensions that seem promising in terms of reconciling seeming conflicts between theory and practice. Copyright 1997 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 45 (1997)
Issue (Month): 1 (March)
Pages: 1-25
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Handle: RePEc:bla:jindec:v:45:y:1997:i:1:p:1-25

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  1. Rachael Goodhue & Dale Heien & Hyunok Lee & Daniel Sumner, 2003. "Contracts and Quality in the California Winegrape Industry," Review of Industrial Organization, Springer, vol. 23(3), pages 267-282, December. [Downloadable!] (restricted)
    Other versions:
  2. Benito Arruñada & Luis Vázquez & Giorgio Zanarone, 2009. "Institutional constraints on organizations: the case of Spanish car dealerships," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(1), pages 15-26. [Downloadable!]
    Other versions:
  3. Salvatore Piccolo & David Martimort, 2006. "The Strategic Value of Incomplete Contracting in a Competing Hierarchies Environment," CSEF Working Papers 160, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 08 Dec 2006. [Downloadable!]
  4. TAKECHI Kazutaka, 2008. "International Strategic Alliances for Local Market Entry: Direct Launches versus Marketing Alliances in Pharmaceuticals," Discussion papers 08022, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  5. Milliou, Chrysovalantou & Petrakis, Emmanuel & Vettas, Nikolaos, 2003. "Endogenous Contracts Under Bargaining in Competing Vertical Chains," CEPR Discussion Papers 3976, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Affuso, L., 2000. "Intra-Firm Retail Contracting: Survey Evidence from the UK'," Cambridge Working Papers in Economics 0022, Faculty of Economics, University of Cambridge. [Downloadable!]
  7. Lewin-Solomons, S., 2000. "Innovation and Authority in Franchise Systems: An Empirical Exploration of the Plural Form," Cambridge Working Papers in Economics 0015, Faculty of Economics, University of Cambridge. [Downloadable!]
  8. Jorge Tarziján M, 2003. "Revisando La Teoria De La Firma," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 6(2), pages 149-177. [Downloadable!]
  9. Arturs Kalnins & Francine Lafontaine, 1996. "The Characteristics of Multi-Unit Ownership in Franchising: Evidence from Fast-Food Restaurants in Texas," NBER Working Papers 5859, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Francine Lafontaine & Kathryn L. Shaw, 2001. "Targeting Managerial Control: Evidence from Franchising," NBER Working Papers 8416, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Holmstrom, Bengt & Roberts, John, 1998. "The Boundaries of the Firm Revisited," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 73-94, Fall. [Downloadable!] (restricted)
  12. Lewin-Solomons, S., 2000. "Autonomy, Contractibility and the Franchise Relationship," Cambridge Working Papers in Economics 0016, Faculty of Economics, University of Cambridge. [Downloadable!]
  13. Francine Lafontaine & Joanne Oxley, 2001. "International Franchising: Evidence from US and Canadian Franchisors in Mexico," NBER Working Papers 8179, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Marianna Succurro, 2006. "An economic analysis of contracts signed between tour operators and travel agents," European Journal of Law and Economics, Springer, vol. 22(3), pages 199-218, November. [Downloadable!] (restricted)
  15. Lewin-Solomons, S.B., 2000. "The Plural Form in Franchising: A Synergism of Market and Hierarchy," Cambridge Working Papers in Economics 0027, Faculty of Economics, University of Cambridge. [Downloadable!]
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