Desai, Preyas S.; Srinivasan, Kannan - In: Management Science 41 (1995) 10, pp. 1608-1623
We study the signalling strategy of a principal who is privately informed about its high demand potential to an uninformed risk-neutral agent. We analyze the model in the context of a contract between a franchisor and a franchisee. We examine the distortions of a two-part pricing scheme...