The logic of franchise contracts: Empirical results of Japan
This 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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References listed on IDEAS
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- repec:cup:cbooks:9780521772525 is not listed on IDEAS
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- Rubin, Paul H, 1978. "The Theory of the Firm and the Structure of the Franchise Contract," Journal of Law and Economics, University of Chicago Press, vol. 21(1), pages 223-33, April.
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