Restrictions verticales et externalité intra-marque en matière d'effort promotionnel

Abstract

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Why include royalties in distribution contracts? Evidence from France

“…2.1.1 Six types of distribution networks. An adaptation of the classification established by Chaudey and Fadairo (2006) is proposed here in order to specify the different types of networks in the sample. The initial classification distinguishes four types of distribution networks according to the contract used to organise the vertical relationships:licence;concession;franchise; andcommission‐based affiliation.With a licence contract, the retailer is allowed to use a brand name under conditions imposed by the upstream firm in order to homogenise the network.…”

“…As mentioned by Chaudey and Fadairo (2006), these definitions underline a hierarchy in the four types of contracts based on the degree of coercion imposed on the retailers, i.e. the level of vertical integration involved.…”

“…Combining this classification with the one initiated by Chaudey and Fadairo (2006), a typology of the French distribution networks is obtained, with six integration levels, as presented in Figure 1.…”

Why Royalties? Evidence from French Distribution Networks

“…As shown in Table 2, the sample includes five types of networks, which are classified by the dominant type of vertical contract (the distribution is in brackets): networks mainly organised by trademark licenses (42), concessions (39), franchised networks slightly mixed with retail units owned by the upstream firm (118), highly mixed franchised networks (48) and distribution networks that are mainly integrated (149). To present these different types of distribution networks, I use the following figure, based on the classification established by Chaudey and Fadairo (2006), which distinguishes four types of vertical relationships according to the degree of coercion for the downstream units. The classification proposed here from the INSEE database accounts for five types of networks involving independent retailers.…”

“…This body of literature has been developed since the late 1980s based on U.S. data. Investigations of European data are more recent; they include Arrunada et al (2001) and Vazquez (2004;2005) for Spain; Pénard et al (2003), Chaudey and Fadairo (2006;2010), and Barthélemy (2008) for France; Kidwell et al (2007) for Norway;…”