The logic of franchise contracts: Empirical results of Japan
AbstractThis paper examines the factors determining the choice between company-owned outlets and franchising. A number of researchers have based their studies on the data of retail contracting in the US. However, there has been little empirical analysis in the case of Japan. In this paper, we provide a comprehensive assessment of various alternative hypotheses about franchising by using Japanese data. The principal-agent model of franchising that assumes risk-sharing and moral-hazard is supported by our data.
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Bibliographic InfoArticle provided by Elsevier in its journal Japan and the World Economy.
Volume (Year): 22 (2010)
Issue (Month): 3 (August)
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Web page: http://www.elsevier.com/locate/inca/505557
Franchising Empirical study Agency theory Moral-hazard;
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