From: Franchise ownership redirection: real options perspective
Parameter | PRF | FRF | ||
---|---|---|---|---|
Effect on ROV | Effect on AET | Effect on ROV | Effect on AET | |
μ0X | Increases with μ0X | Longer with μ0X | Increases with μ0X | Longer with μ0X |
σX | Increases with σX for δ < 13 % and decreases with σX for δ > 13 % | Longer with σX for δ < 13 %, and shorter with σX for δ > 13 % | Increases with σX | Longer with σX |
μ0A | Decreases then flat when μ0A > 0 | Longer then flat when μ0A > 0 | Decreases then become zero when μ0A > 0 | Shorter then become zero when μ0A > 0 |
σA | Increases with σA | Longer with σA | Increases with σA | Longer with σA |
c | Decreases then flat when c > 0.85 | Longer then flat when c > 0.85 | Decreases then become zero when c > 0.85 | Shorter then become zero when c > 0.85 |
δ | Increases with δ | Longer with δ | Increases with δ | Longer with δ |