RETAIL CONTRACTING - THEORY AND PRACTICE

We summarize a number of regularities that arise in the empirical lite rature on contractual relationships between manufacturers and their ex clusive resellers, We do this using studies of traditional and busines s-format-franchise relationships, as well as studies of salesforce-int egration decisions. Some of the patterns that we uncover are consisten t with a standard incentive-cum-insurance theory of organization, whil e others are not. We briefly review some theoretical extensions that s eem promising in terms of reconciling seeming conflicts between theory and practice.