TY  - GEN
AU  - Vroom, Govert
AU  - Gimeno, Javier
SN  - 0001-4273
AU  - Vroom, Govert
AU  - Gimeno, Javier
LA  - eng
CN  - ENP-7746473e-f3d1-44e5-86f9-89fd65c0017d
TI  - Ownership form, managerial incentives, and the intensity of rivalry
PY  - 2007
AB  - 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 consistent with this argument. We also found that a unit’s ownership form affected its rivals’ competitive behavior. Our results indicate that company-owned units’ ability to raise their own and rivals’ prices in highly concentrated markets led to their higher performance relative to franchised units. [ABSTRACT FROM AUTHOR]
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ER  -