We solve a sequential-moves game that involves three players: the franchisor, the entrepreneur, and the banks. The franchisor chooses values of contract terms (a one-time franchise fee and a royalty rate for on-going payments). The entrepreneur dynamically decides when to sign this contract and...

Recent cases of product adulteration by foreign suppliers have compelled many manufacturers to re-think approaches to deterring suppliers from cutting corners, especially when manufacturers cannot fully monitor and control the suppliers' actions. Recognizing that process certification programs,...