This paper shows that, after a 2002 European regulation prohibited the use of dealer exclusive territories, automobile franchise contracts in Italy introduced price ceilings and standards on verifiable marketing and service inputs, such as advertising and salespeople. The contracts also imposed...

11 hypotheses from agency theory, transaction cost analysis, and Ouchi's theoretical approach on the impact of environmental, Company and salespeople characteristics on the design of salesforce control systems (outcome- vs. behavior-based) are summarized and tested on a data set of 270 German...