Cochet, Olivier; Ehrmann, Thomas - In: Managerial and Decision Economics 28 (2007) 1, pp. 41-55
Besides franchisee opportunistic behavior, franchisor moral hazard is a central concern in franchise chains. Economic literature thus far focused on the sharing of franchisee revenues as an incentive for curbing franchisor malfeasance. In this paper, we ask whether and how the obligations of...