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Contract duration and contractual learning: Evidence from franchising networks

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  • Frédéric Perdreau
  • Magali Chaudey
  • Odile Chanut
  • Muriel Fadairo

Abstract

Contract duration in franchising has generally been studied in frameworks where agents are assumed to have a high level of foresight. We complement existing studies by adopting a dynamic perspective that allows us to introduce a learning process in choice and adjustment of contract duration. On the basis of French panel data (1995–2003), collected from the yearbooks of the French Federation of Franchising, results of dynamic models are consistent with the existence of a learning process in the capacity to design appropriate contracts. Our study shows that certain factors, in particular too much franchising, may hinder the achievement of such a capability.

Suggested Citation

  • Frédéric Perdreau & Magali Chaudey & Odile Chanut & Muriel Fadairo, 2018. "Contract duration and contractual learning: Evidence from franchising networks," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 39(2), pages 240-252, March.
    • Handle: RePEc:wly:mgtdec:v:39:y:2018:i:2:p:240-252
    DOI: 10.1002/mde.2899
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    Cited by:

    1. Ding, Liping & Zhang, Zumeng & Dai, Qiyao & Zhu, Yuxuan & Shi, Yin, 2023. "Alternative operational modes for Chinese PV poverty alleviation power stations: Economic impacts on stakeholders," Utilities Policy, Elsevier, vol. 82(C).
    2. Maksym Sitnicki, 2018. "Franchising Model Of Commercialization Of Scientific Libraries' Services At Research Universities," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(2).
    3. Zhang, Zumeng & Ding, Liping & Wang, Chaofan & Dai, Qiyao & Shi, Yin & Zhao, Yujia & Zhu, Yuxuan, 2022. "Do operation and maintenance contracts help photovoltaic poverty alleviation power stations perform better?," Energy, Elsevier, vol. 259(C).
    4. Perdreau, Frédéric & Fréchet, Marc, 2022. "Learning, contractual capabilities, and contract duration changes in franchise networks," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

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