General Equilibrium Analysis of Hold-Up Problem and Non-Exclusive Franchise Contract

Chu, Chih-Ning; Liu, Wai-Man (Raymond)

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General Equilibrium Analysis of Hold-Up Problem and Non-Exclusive Franchise Contract

Date

2010

Authors

Chu, Chih-Ning

Liu, Wai-Man (Raymond)

Publisher

Blackwell Publishing Ltd

Abstract

In this paper, we develop a general equilibrium model that examines the emergence of non-exclusive franchise contracts in the presence of the franchisor hold-up problem. Our model of an endogenous franchising network underscores the trade-off between the