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The aim of this study is to address empirically the degree of contractual completeness in franchising by combining transaction cost and relational governance perspectives. First, the ratio of specific and residual decision rights is developed as a measure of contractual completeness. Second, we...
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A contract between an upstream and a downstream party consists of a contract price and a delivery requirement. Contract formation entails an externality. It changes the probability distribution of the spot market price by removing high reservation price buyers and various sellers from the spot...
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