The Elasticity of Franchising

The Elasticity of Franchising This paper creates a model to test whether franchising functions as product differentiation and estimates its elasticity. Using data on the average franchisee in thirty restaurant chains, the elasticity of franchising is measured at 0.252, which is similar in magnitude to values found in previous research for the elasticity of advertising of consumer product goods. The results suggest that, at least for some franchisees, the franchise system is providing product differentiation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

The Elasticity of Franchising

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1999 by Kluwer Academic Publishers
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1023/A:1008019418231
Publisher site
See Article on Publisher Site

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