Document Type

Article

Publication Date

2-4-2014

Journal / Book Title

Journal of Reviews of Global Economics

Abstract

This paper uses a theoretical framework and a by use of a franchising model will examine the practice of charging a franchise fee for the use of the trademark and will show how this practice by controlling the number of franchised operations enables franchisor to extract monopoly profit. Paper will further examine the conditions which the joint practice of franchise fee and royalty rate allows extraction of monopoly rent.

DOI

10.6000/1929-7092.2014.03.02

Rights

This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/)

Published Citation

Ramjerdi, M. H. (2014). Monopoly by Contract: The Practice of Franchised Fee and Royalty Rate. Journal of Reviews on Global Economics, 3, 7–14. https://doi.org/10.6000/1929-7092.2014.03.02

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