Why royalties ? Evidence from French distribution networks


Muriel Fadairo (1)

1 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne

This empirical note deals with the contractual design of relationships in distribution networks. In the framework of agency theory, I study the royalty rate as an incentive device for the upstream firm in maintaining brand-name value, using recent French data to estimate probit models. The results are consistent with the analytical framework.

Mots clés: Vertical Relationships; Distribution Networks; Contract Design; Two-sided moral hazard

Domaines: Economies et finances

Muriel Fadairo. Why royalties ? Evidence from French distribution networks
. 2011. ⟨halshs-00560208v3⟩