Liang, Hueimei; Lee, Kuo-Jung; Huang, Jen-Tsung; Lei, … - In: Economic Modelling 31 (2013) C, pp. 128-137
This study constructs a real options model to evaluate franchise contracts that take into account a guaranteed profit offered by the franchisor to franchisees under a dynamic environment, as in the contract of 7-Eleven Convenient Stores in Taiwan. We derive closed-form solutions of contract...