IDEAS home Printed from https://ideas.repec.org/a/bla/jindec/v39y1991i5p595-620.html
   My bibliography  Save this article

Producer Opportunism in Retailing Contracts

Author

Listed:
  • Dewatripont, Mathias
  • Sekkat, Khalid

Abstract

This paper analyzes the role of ex post producer opportunism on the optimal design of vertical restraints. It considers vertical contracts as starting points of ex post renegotiation. It shows that the alleged room for franchisor opportunism that seems quite important in franchising contracts can be seen as an insurance device when part of the goal of the contract is to provide a stable payoff to the franchisee. This conclusion holds for various opportunistic strategies: direct eviction of initial retailers, excessive entry of new retailers on the market, or resale price maintenance used to encourage "voluntary" exit of initial retailers. Copyright 1991 by Blackwell Publishing Ltd.

Suggested Citation

  • Dewatripont, Mathias & Sekkat, Khalid, 1991. "Producer Opportunism in Retailing Contracts," Journal of Industrial Economics, Wiley Blackwell, vol. 39(5), pages 595-620, September.
    • Handle: RePEc:bla:jindec:v:39:y:1991:i:5:p:595-620
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0022-1821%28199109%2939%3A5%3C595%3APOIRC%3E2.0.CO%3B2-8&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Costin Lianu & Irina Gabriela Radulescu & Simona Corina Dobre Gudei & Cosmin Lianu & Veronica Mindrescu, 2022. "Cohesion Forces Determinants in Cluster Development: A Study Case for Romania," Sustainability, MDPI, vol. 14(6), pages 1-12, March.
    2. Affuso, L., 2000. "Intra-Firm Retail Contracting: Survey Evidence from the UK'," Cambridge Working Papers in Economics 0022, Faculty of Economics, University of Cambridge.
    3. Martin Peitz & Dongsoo Shin, 2013. "Upstream Market Power and Wasteful Retailers," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(1), pages 234-253, January.
    4. Lømo, Teis Lunde, 2015. "Risk sharing mitigates opportunism in vertical contracting," Working Papers in Economics 10/15, University of Bergen, Department of Economics.
    5. Tom Murphy & Greg Walker & John Hicks, 1996. "Promoting Efficiency and Competition in Rural Petrol Markets," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 3(4), pages 441-448.
    6. Phan, Phillip H. & Butler, John E. & Lee, Soo H., 1996. "Crossing mother: Entrepreneur-franchisees' attempts to reduce franchisor influence," Journal of Business Venturing, Elsevier, vol. 11(5), pages 379-402, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:39:y:1991:i:5:p:595-620. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.