Ownership Form , Managerial Incentives , and the Intensity of Rivalry

@inproceedings{Vroom2007OwnershipF,
  title={Ownership Form , Managerial Incentives , and the Intensity of Rivalry},
  author={Govert Vroom and JAVIER GIMENO INSEAD},
  year={2007}
}
This study investigates how differences in ownership form—between franchised and company-owned units—affect managerial incentives and competitive pricing in different oligopolistic contexts. We argue that chains may restrict decision making in company-owned units as a commitment device to maintain high prices in concentrated markets and found evidence… CONTINUE READING