Blockchain and Smart-Contract: A Pioneering Approach of Inter-Firms Relationships? The Case of Franchise Networks

GATE WP 1917 – April 2019

19 Pages Posted: 24 May 2019

See all articles by Richard Baron

Richard Baron

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Magali Chaudey

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Date Written: April 26, 2019

Abstract

This paper is interested in the analysis of Blockchains and Smart-contracts applied to inter-firms relationships, in particular the franchise networks. After defining the Blockchain technology and the Smart-contract as a particular type of contract stored in blockchains, we question the theory of contracts and its conception(s) of transactions, information asymmetries, firm or inter-firm relations. To better understand the challenges of blockchain for franchise networks and identify opportunities for implementation in these networks, we present some relevant applications of this technology. We identify different ways where blockchain technology could improve the network management and therefore their performance: the supply-chain, the brand-name protection, security and transparency in the payment of fees and royalties, access to reliable information via an oracle.

Keywords: Blockchain, Smart-Contract, Transaction cost, Network, Franchise

JEL Classification: D86, L14, L81, O33

Suggested Citation

Baron, Richard and Chaudey, Magali, Blockchain and Smart-Contract: A Pioneering Approach of Inter-Firms Relationships? The Case of Franchise Networks (April 26, 2019). GATE WP 1917 – April 2019, Available at SSRN: https://ssrn.com/abstract=3378477 or http://dx.doi.org/10.2139/ssrn.3378477

Richard Baron (Contact Author)

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

Magali Chaudey

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

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