Not only are most franchisees themselves small businesses, but so are many franchisors, particularly in the formative years of their franchise businesses. High turbulence and attrition rates in the formative years of franchise businesses result in an industry profile whereby, at any one time,...

Not only are most franchisees themselves small businesses, but so are many franchisors, particularly in the formative years of their franchise businesses. High turbulence and attrition rates in the formative years of franchise businesses result in an industry profile whereby, at any one time,...

The paper examines the impact of trade integration and product market competition on firms' price setting behaviour and the degree of price stickiness. The analysis is based on a New-Keynesian open-economy DSGE model with variable desired mark-ups and Calvo price setting in which the frequency...