"Structural Estimation of Moral Hazard Models in Channels"

Dr. George John 
General Mills - Gerot Chair in Marketing
Carlson School of Management, University of Minnesota 

Previously hosted on Wednesday, March 18, 2009 in 205 Cornell Hall.  

  Dr. George John examines the question: Why do manufacturers create diverse multi-channel networks (such as concurrently using company-owned stores, franchised dealers, and independent outlets) to serve their customers? How can the manufacturer ensure that each type of channel effectively acquires customers and serves those customers well? Econometric methods are used to estimate a moral hazard model which sheds light on these questions, providing empirical evidence that the complex multi-channel structure is superior on these dimensions to either all company-owned stores or all independent outlets.