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The Dynamics of Franchise Contracting: Evidence from Panel Data

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Author Info
Francine Lafontaine
Kathryn L. Shaw

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Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 107 (1999)
Issue (Month): 5 (October)
Pages: 1041-1080
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Handle: RePEc:ucp:jpolec:v:107:y:1999:i:5:p:1041-1080

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Klein, Benjamin & Saft, Lester F, 1985. "The Law and Economics of Franchise Tying Contracts," Journal of Law & Economics, University of Chicago Press, vol. 28(2), pages 345-61, May.
  2. Klein, Benjamin, 1980. "Transaction Cost Determinants of "Unfair" Contractual Arrangements," American Economic Review, American Economic Association, vol. 70(2), pages 356-62, May. [Downloadable!] (restricted)
  3. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law & Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  4. Sugato Bhattacharyya & Francine Lafontaine, 1995. "Double-Sided Moral Hazard and the Nature of Share Contracts," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 761-781, Winter. [Downloadable!] (restricted)
  5. Stiglitz, J.E., 1988. "Sharecropping," Papers 11, Princeton, Woodrow Wilson School - Discussion Paper.
  6. James A. Brickley & Frederick H. Dark & Michael S. Weisbach, 1991. "An Agency Perspective on Franchising," Financial Management, Financial Management Association, vol. 20(1), Spring.
  7. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  8. Martin, Robert E & Justis, Robert T, 1993. "Franchising, Liquidity Constraints and Entry," Applied Economics, Taylor and Francis Journals, vol. 25(9), pages 1269-77, September.
  9. Stiglitz, Joseph E, 1974. "Incentives and Risk Sharing in Sharecropping," Review of Economic Studies, Blackwell Publishing, vol. 41(2), pages 219-55, April. [Downloadable!] (restricted)
    Other versions:
  10. Masten, Scott E & Snyder, Edward A, 1993. "United States versus United Shoe Machinery Corporation: On the Merits," Journal of Law & Economics, University of Chicago Press, vol. 36(1), pages 33-70, April.
  11. Michael, Steven C. & Moore, Hollie J., 1995. "Returns to franchising," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 133-155, October. [Downloadable!] (restricted)
  12. Goldberg, Victor P & Erickson, John R, 1987. "Quantity and Price Adjustment in Long-term Contracts: A Case Study of Petroleum Coke," Journal of Law & Economics, University of Chicago Press, vol. 30(2), pages 369-98, October.
  13. Erin Anderson & David C. Schmittlein, 1984. "Integration of the Sales Force: An Empirical Examination," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 385-395, Autumn. [Downloadable!] (restricted)
  14. Martin, Robert E, 1988. "Franchising and Risk Management," American Economic Review, American Economic Association, vol. 78(5), pages 954-68, December. [Downloadable!] (restricted)
  15. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August. [Downloadable!] (restricted)
    Other versions:
  16. Telser, L G, 1980. "A Theory of Self-enforcing Agreements," Journal of Business, University of Chicago Press, vol. 53(1), pages 27-44, January. [Downloadable!] (restricted)
  17. Lafontaine, Francine & Bhattacharyya, Sugato, 1995. "The role of risk in franchising," Journal of Corporate Finance, Elsevier, vol. 2(1-2), pages 39-74, October. [Downloadable!] (restricted)
  18. Rubin, Paul H, 1978. "The Theory of the Firm and the Structure of the Franchise Contract," Journal of Law & Economics, University of Chicago Press, vol. 21(1), pages 223-33, April.
  19. Gallini, Nancy T & Lutz, Nancy A, 1992. "Dual Distribution and Royalty Fees in Franchising," Journal of Law, Economics and Organization, Oxford University Press, vol. 8(3), pages 471-501, October.
  20. Bagwell, Kyle & Riordan, Michael H, 1991. "High and Declining Prices Signal Product Quality," American Economic Review, American Economic Association, vol. 81(1), pages 224-39, March. [Downloadable!] (restricted)
    Other versions:
  21. Kirk Monteverde & David J. Teece, 1982. "Supplier Switching Costs and Vertical Integration in the Automobile Industry," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 206-213, Spring. [Downloadable!] (restricted)
  22. Kaufmann, Patrick J & Lafontaine, Francine, 1994. "Costs of Control: The," Journal of Law & Economics, University of Chicago Press, vol. 37(2), pages 417-53, October.
  23. Gillian K. Hadfield, 1991. "Credible Spatial Preemption through Franchising," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 531-543, Winter. [Downloadable!] (restricted)
  24. Francine Lafontaine, 1992. "Agency Theory and Franchising: Some Empirical Results," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 263-283, Summer. [Downloadable!] (restricted)
  25. Pittman, R., 1990. "Specific Investments, Contracts, And Opportunism: The Evolution Of Railroad Sidetrack Agreements," Papers 90-6, U.S. Department of Justice - Antitrust Division.
    Other versions:
  26. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May. [Downloadable!] (restricted)
  27. Brickley, James A. & Dark, Frederick H., 1987. "The choice of organizational form The case of franchising," Journal of Financial Economics, Elsevier, vol. 18(2), pages 401-420, June. [Downloadable!] (restricted)
  28. Rees, Ray, 1985. "The Theory of Principal and Agent: Part 1," Bulletin of Economic Research, Blackwell Publishing, vol. 37(1), pages 3-26, January.
  29. Lafontaine, Francine, 1993. "Contractual Arrangements as Signaling Devices: Evidence from Franchising," Journal of Law, Economics and Organization, Oxford University Press, vol. 9(2), pages 256-89, October.
  30. Klein, Benjamin & Murphy, Kevin M, 1988. "Vertical Restraints as Contract Enforcement Mechanisms," Journal of Law & Economics, University of Chicago Press, vol. 31(2), pages 265-97, October.
  31. William Hallagan, 1978. "Self-Selection by Contractual Choice and the Theory of Sharecropping," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 344-354, Autumn. [Downloadable!] (restricted)
  32. Norton, Seth W, 1988. "An Empirical Look at Franchising as an Organizational Form," Journal of Business, University of Chicago Press, vol. 61(2), pages 197-218, April. [Downloadable!] (restricted)
  33. Crocker, Keith J & Masten, Scott E, 1996. "Regulation and Administered Contracts Revisited: Lessons from Transaction-Cost Economics for Public Utility Regulation," Journal of Regulatory Economics, Springer, vol. 9(1), pages 5-39, January.
  34. Richard G. Harris & Elmer G. Wiens, 1980. "Government Enterprise: An Instrument for the Internal Regulation of Industry," Canadian Journal of Economics, Canadian Economics Association, vol. 13(1), pages 125-32, February. [Downloadable!] (restricted)
  35. Masten, Scott E, 1984. "The Organization of Production: Evidence from the Aerospace Industry," Journal of Law & Economics, University of Chicago Press, vol. 27(2), pages 403-17, October.
  36. Keith J. Crocker & Scott E. Masten, 1988. "Mitigating Contractual Hazards: Unilateral Options and Contract Length," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 327-343, Autumn. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2002. "Competition In or For the Field: Which Is Better?," Cowles Foundation Discussion Papers 1358, Cowles Foundation, Yale University. [Downloadable!]
    Other versions:
  2. Peter Huber, 2003. "On the Determinants of Cross-border Cooperation of Austrian Firms with Central and Eastern European Partners," Regional Studies, Taylor and Francis Journals, vol. 37(9), pages 947-955, December. [Downloadable!] (restricted)
    Other versions:
  3. Renata Kosova & Francine Lafontaine, 2006. "Firm Survival and Growth in Retail and Service Industries: Evidence from Franchised Chains," Working Papers 0007, School of Business, The George Washington University. [Downloadable!]
  4. Etienne Pfister & Bruno Deffains & Myriam Doriat-Duban & Stéphane Saussier, 2006. "Institutions and contracts: Franchising," European Journal of Law and Economics, Springer, vol. 21(1), pages 53-78, January. [Downloadable!] (restricted)
  5. 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:
  6. Manuel González & Benito Arruñada & Alberto Fernández, 1999. "Causes of Subcontracting: Evidence from Panel Data on Construction Firms," Economics Working Papers 428, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  7. Benito Arruñada & Luis Garicano & Luis Vázquez, 1998. "Completing Contracts Ex Post: How Car Manufacturers Manage Car Dealers," Economics Working Papers 267, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2004. [Downloadable!]
  8. Andreas Roider, 2007. "Risk, Delegation, and Project Scope," IZA Discussion Papers 3117, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Peter Huber, 2003. "Small Firms in Cross-Border Business Networks with the CEEC: Evidence From Austria," WIFO Working Papers 213, WIFO. [Downloadable!]
  10. Gould, Eric D & Pashigian, B. Peter & Prendergast, Canice, 2002. "Contracts, Externalities and Incentives in Shopping Malls," CEPR Discussion Papers 3598, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  11. 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)
  12. Alexander, Corinne & Goodhue, Rachael E. & Rausser, Gordon C., 2000. "Do Quality Incentives Matter?," Working Papers 11946, University of California, Davis, Department of Agricultural and Resource Economics. [Downloadable!]
  13. 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!]
  14. Jonathan S. Seaton, 2003. "An analysis of UK franchise contracting 1989-1999," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 25-34. [Downloadable!]
  15. Olivier Cochet & Thomas Ehrmann, 2007. "Preliminary evidence on the appointment of institutional solutions to franchisor moral hazard-the case of franchisee councils," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 41-55. [Downloadable!]
  16. Prantl, Susanne, 2003. "Bankruptcy and Voluntary Liquidation : Evidence for New Firms in East and West Germany after Unification," ZEW Discussion Papers 03-72, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  17. John D. Benjamin & Peter Chinloy & Donald Jud & Daniel T. Winkler, 2006. "Franchising in Residential Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 28(1), pages 61-70. [Downloadable!]
  18. Chong-en Bai & Zhigang Tao, 1997. "Contract Mix and Ownership," Boston College Working Papers in Economics 345., Boston College Department of Economics. [Downloadable!]
  19. Benito Arruñada & Luis Garicano & Luis Vázquez, 1999. "Contractual Allocation of Decision Rights and Incentives: The Case of Automobile Distribution," Economics Working Papers 424, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
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