Arruñada, Benito; Garicano, Luis; Vázquez, Luis - Department of Economics and Business, Universitat … - 1998
This article illustrates how contracts are completed ex post in practice and, in so doing, indirectly suggests what the … real function of contracts may be. Our evidence comes from the contracts between automobile manufacturers and their dealers … in 23 dealership networks in Spain. Franchising dominates automobile distribution because of the need to decentralize …