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Information Asymmetry and Dual Distribution in Franchise Networks

Wilson, Mark; Shailer, Gregory

Description

We examine whether a dual distribution system that uses both franchisor-operated and franchisee-operated outlets reduces a franchisor's information disadvantage when contracting with franchisee retailers. Using detailed qualitative and quantitative managerial data, we find persuasive evidence of the strategic use of performance information obtained from franchisor-operated outlets to reduce information asymmetry and enhance contracting efficiency for franchisee-operated outlets. We test whether...[Show more]

CollectionsANU Research Publications
Date published: 2015
Type: Journal article
URI: http://hdl.handle.net/1885/103585
Source: Journal of Business Finance and Accounting
DOI: 10.1111/jbfa.12161

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