Liberalizing a distribution system: The European car market
AbstractWe quantify the competitive effects of removing vertical restraints, based on the recent proposals to liberalize the selective and exclusive distribution system in the European car market. We estimate a differentiated products demand system for new cars and specify a model of oligopoly pricing under the current distribution regime. We then perform several policy experiments: the creation of international intrabrand competition (cross-border trade) and a possible strenghtening of national intrabrand competition. Our approach may also be useful to assess the competitive effects of vertical restraints in other applications.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/224447.
Date of creation: 2002
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Web page: http://www.kuleuven.be
Distribution; Market; Effects; Proposals; Oligopoly; Applications;
Other versions of this item:
- Randy Brenkers & Frank Verboven, 2006. "Liberalizing A Distribution System: The European Car Market," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 216-251, 03.
- Brenkers, Randy & Verboven, Frank, 2002. "Liberalizing a Distribution System: the European Car Market," CEPR Discussion Papers 3622, C.E.P.R. Discussion Papers.
- F00 - International Economics - - General - - - General
- L00 - Industrial Organization - - General - - - General
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