This paper presents a model of the joint venture that is grounded in the stylized facts we found from a sample of 200 joint venture contracts. The model incorporates the revenue-sharing contract into the incomplete contract frameworks of Grossman-Hart-Moore Property Rights Theory and the...

We study different breach remedies, considering the possibility of breach inducement activities -- actions taken by one contract party to make it more costly for the other party to perform the contract. We analyze the performance of each remedy in suppressing breach inducement activities and...

An intriguing feature of franchising is the simultaneous use of company-owned and franchise units under the same brand name. Furthermore, there is a separation of the ownership and control arrangements in franchise units. The underlying mechanism is the self-enforcement that sustains the...

This paper presents a model of the joint venture that is grounded in the stylized facts we found from a sample of 200 joint venture contracts. The model incorporates the revenue-sharing contract into the incomplete contract frameworks of Grossman-Hart-Moore Property Rights Theory and the...

Poor protection of private property has limited the access to bank loans by private enterprises in developing and transition economies. Under those circumstances, private entrepreneurs have resorted to various ways of enhancing the "de facto" protection of private property. Using a dataset of...

Recent research suggests that expropriation by controlling shareholders of other shareholders is an important problem in both publicly held and closely held firms. This paper examines how partners in closely held firms can make control-right arrangements to mitigate expropriation and other...