Vertical Restraints in the European Automobile Industry
AbstractNew regulation for the EU automobile industry allows dealers to engage in multifranchise operation, a practice that formerly could be prohibited by the producers in this market. We argue that a likely consequence of thsi shift in regulatory regime is increased dealer concentration. This will tend to lower wholesale prices as producers must compete more intensely to get access to the dealers. On the other hand, dealers will gain local market power which tend to raise retail prices.
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Bibliographic InfoPaper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 13/97.
Length: 33 pages
Date of creation: 1997
Date of revision:
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Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
Web page: http://www.nhh.no/
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AUTOMOBILES ; MARKETS ; REGULATIONS;
Find related papers by JEL classification:
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
- L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
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- Tommy Staahl Gabriel & Lars Sorgard, 1998.
"The Pro-competitive Effect of Two-Part Tariffs,"
International Journal of the Economics of Business,
Taylor & Francis Journals, vol. 5(1), pages 47-55.
- Gabrielsen, T.S. & Sorgard, L., 1998. "The Pro-Competitive Effect of Two-Part Tariffs," Norway; Department of Economics, University of Bergen 175, Department of Economics, University of Bergen.
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