1 residual claims and incentives in restaurant chains clarissa a yeap university of minnesota last revised may 2006 abstract i examine the relationship between ownership production activities using new dataset provides an opportunity to effects on because is decentralized fairly uniform across restaurants same chain yet allocation varies company owned franchised units affecting strength for level decision own or franchise each reflects value either withholding allocating performing these find that more complex are systematically correlated with onsite food raises likelihood by 28 relative offsite table service 26 counter results not consistent straightforward effort promoting simple principal agent models they view can generate unbalanced diverse tasks acknowledgements would like thank thomas hubbard ali hortacsu chad syverson francine lafontaine raphael thomadsen
