The logic of franchise contracts: Empirical results of Japan

Masayoshi Maruyama and Yu Yamashita

Japan and the World Economy, 2010, vol. 22, issue 3, 183-192

Abstract: 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.

Keywords: Franchising; Empirical; study; Agency; theory; Moral-hazard (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:22:y:2010:i:3:p:183-192

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