We explore patterns of vertical integration in the US airline industry. Major airlines subcontract portions of their network to regional partners, which may or may not be owned. We investigate if ownership economizes on ex post renegotiation costs. We estimate whether airlines are more likely to...

This paper analyzes royalty rates in franchise contracts, focusing on the two leading hypotheses. We consider whether royalty payments are simply the means for franchisors to acquire revenue from franchisees (revenue hypothesis), or are to preserve incentives for the franchisors to exert...

The present study identifies and analyzes, critically evaluating, the contributions and shortcomings of the following theories, approaches and models, which are attempting to explain post factum the creation of international joint ventures in the practice: transaction costs theory and its...

This paper explores the processes of transforming a network of non-mandated exchange relations into a cohesive and innovative partnership. The question this paper attempts to answer is how to speed up innovation processes in such networks. The paper demonstrates that transformation of networks...

This Paper studies scoring auctions, a procedure commonly used to buy differentiated products: suppliers submit offers on all dimensions of the good (price, level of non monetary attributes), and these are evaluated using a scoring rule. We provide a systematic analysis of equilibrium behaviour...

Accountable Care Organizations (ACOs) are new organizations created by the Affordable Care Act to encourage more efficient, integrated care delivery. To promote efficiency, ACOs sign contracts under which they keep a fraction of the savings from keeping costs below target provided they also...

This study examines the role of the Indian diaspora in the outsourcing of work to India. Our data are taken from oDesk, the world's largest online platform for outsourced contracts, where India is the largest country in terms of contract volume. We use an ethnic name procedure to identify ethnic...

We analyze how variations in contractibility affect the design of contracts in the context of biotechnology research agreements. A major concern of firms financing biotechnology research is that the R&D firms might use the funding to subsidize other projects or substitute one project for...

The theoretical determinants of technology licensing contracts have been extensively studied but empirical evidence is scarce. We assemble a data set of all the foreign technology licensing agreements entered into by manufacturing firms in India between 1989 and 1993. Industry, firm, and...