Contract Theories and Franchising Franchising is an excellent field of application for contract theories. This paper aims at surveying the recent literature on franchise chains and contracts. It focuses on the choice of contractual terms (the « contractual design ») with an emphasis on...

[fre] Contract Theories and Franchising Franchising is an excellent field of application for contract theories. This paper aims at surveying the recent literature on franchise chains and contracts. It focuses on the choice of contractual terms (the « contractual design ») with an emphasis on...

[eng] In this paper, we compare two theories of contract: the transaction cost theory and the incomplete contract theory. Our starting point is to study what is common to the two theoretical frameworks, that is to say the incompleteness of contracting. We show that the source of incompleteness...

In this paper we investigate the relationship between operating cost and number of bidders for local bus contracts in London. Using an original database on 806 calls for tender on bus routes, we find that a higher number of bidders, whether actual or expected, is associated with a lower cost of...

French municipalities often contract out the provision of local public services to private companies, and regularly choose the same private operator for a range of different services. We develop a model of relational contracts that shows how this strategy may lead to better performance at lower...