We study the effect of organizational choice and institutions on the performance of Spanish car dealerships. Using outlet-level data from 1994, we find that verticallyintegrated dealerships showed substantially lower labor productivity, higher labor costs and lower profitability than franchised...

We analyze empirically the allocation of rights and monetary incentives in automobile franchise contracts. These contracts substantially restrict the decision rights of dealers and grant manufacturers extensive contractual completion and enforcement powers, converting the manufacturers, de...

This paper analyzes royalty rates in franchise contracts, focusing on the two leading hypotheses. We consider whether royalty payments are simply the means for franchisors to acquire revenue from franchisees (revenue hypothesis), or are to preserve incentives for the franchisors to exert...

Efficiency arguments explain why commercial intermediaries exist and will continue to be involved in the exchanges despite the spread of digital networks. Commercial intermediaries provide producers and consumers with a set of information, logistic, securization and insurance (and liquidity)...

Cooperation can benefit and hurt firms at the same time. An important question then is: when is it better to cooperate. And how can an appropriate partner be selected? In this paper we present a model of inter-firm cooperation driven by cognitive distance, appropriability conditions and external...