Problematic Relations: Franchising and the Law of Incomplete Contracts

• DOI: 10.2307/1228908
• Publication Date: 2006-04-22T22:39:53Z
• Authors: Gillian K. Hadfield
• Keywords: 0502 economics and business; 05 social sciences

Commitments to take or refrain from taking certain actions are indispensable elements in most forms of interaction and exchange. Even the purest form spot-market transaction rests on commitments: commitment state value a piece paper future exchanges, individual not steal back what has been sold. As transactions spread out over time become more complex, however, is needed ground exchange than mere stability currency property: The solidity contract also required.