À la recherche d'un juste équilibre entre libertés fondamentales et droits fondamentaux dans le marché intérieur - Quelques réflexions à propos des arrêts Schmidberger et Omega


Revue du Droit de l'Union Européenne

2004, n°4

Departments: Tax & Law, GREGHEC (CNRS)

A Model of Free Riding Incentives in Franchise Chains


Seoul Journal of Business

June 2004, vol. 10, n°1, pp.81-104

Departments: Marketing

This paper explains the free riding phenomenon in franchise chains where all chain members benefit mutually from the positive network externality of service quality. Starting from a simple formal model with two independent outlets, we present the analytical form of the optimal reaction function in which two outlets interact through service quality externalities. With complete information, no outlet finds any interest in free riding on service quality at the expense of the other. Contrary to previous findings, the positive demand externality increases the optimal service quality through interactions among chain members with complete information. By relaxing the complete information assumption, we demonstrate that incompleteness of information is the main source of free riding incentives. Contrary to the prevailing explanation based on agency theory, incompleteness of information leads outlets facing a smaller externality to free ride more on service quality compared to its optimal level with complete information.

A Perpetual Race to Stay Ahead


Review of Economic Studies

October 2004, vol. 71, n°249, pp.1065-1089

Departments: Finance

A Practical Implementation of Stochastic Programming: an Application to the Evaluation of Option Contracts in Supply Chains



May 2004, vol. 40, n°5, pp.743-756

Departments: Information Systems and Operations Management, GREGHEC (CNRS)

Stochastic programming is a powerful analytical method in order to solve sequential decision-making problems under uncertainty. We describe an approach to build such stochastic linear programming models. We show that algebraic modeling languages make it possible for non-specialist users to formulate complex problems and have solved them by powerful commercial solvers. We illustrate our point in the case of option contracts in supply chain management and propose a numerical analysis of performance. We propose easy-to-implement discretization procedures of the stochastic process in order to limit the size of the event tree in a multi-period environment.

A Study on Impeding Factors of Venture Firms in Daedeok Valley


Journal of Korea Technology Innovation Society

2004, vol. 7(2), pp.305-324

Departments: Strategy & Business Policy