IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y1989i15-16p409-426.html
   My bibliography  Save this article

The Economic Effects of Automobile Dealer Regulation

Author

Listed:
  • Frank Mathewson
  • Ralph Winter

Abstract

Since the US Dealer Day in Court Legislation of 1956, many states have altered the nature of written contracts between automobile manufacturers and their dealers. In particular, restrictions have been placed on the manufacturers' rights to add new dealers to market areas of existing dealers and to terminate dealers. Are these laws efficient in the sense that they complete otherwise incomplete contracts (the public interest hypothesis)? Or are these laws inefficient in that they bestow benefits on existing dealers at the expense of consumers and manufacturers (the private interest hypothesis)? We develop a model of the incentive and effects of this intervention that encompasses both hypotheses and offers distinguishing empirical implications.

Suggested Citation

  • Frank Mathewson & Ralph Winter, 1989. "The Economic Effects of Automobile Dealer Regulation," Annals of Economics and Statistics, GENES, issue 15-16, pages 409-426.
    • Handle: RePEc:adr:anecst:y:1989:i:15-16:p:409-426
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/20075766
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerald R. Bodisch, 2009. "Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers," EAG Competition Advocacy Papers 200901CA, Department of Justice, Antitrust Division.
    2. Moner-Colonques, Rafael, 2006. "The tradeoffs between retail service and exclusivity in distribution: Welfare and policy implications," International Review of Law and Economics, Elsevier, vol. 26(2), pages 241-261, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:1989:i:15-16:p:409-426. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.