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Barreiras À Entrada Em Mercados Monopolizados: A Distribuição De Automóveis

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  • Sergio Goldbaum
  • Fernando Garcia

Abstract

This paper aims to investigate, using data on both the placing of automobile dealers and automobile demand and supply variables, the effects of new automobile dealers' entry in previously monopoly markets. First, we identify relevant variables which influence the existence and the number of automobile dealers in a geographical area. Then, using an adapted model from Bresnahan e Reiss (1990), we estimate the fixed costs of new auto dealers' entry in monopoly markets. We conclude that the fixed costs of entry of a second automobile dealer do not seem to be significantly higher than the fixed costs of entry of the first one. This conclusion increases the probability that the exclusivity clause present in the concession contracts does not harm the competition in the automobile Brazilian distribution market.

Suggested Citation

  • Sergio Goldbaum & Fernando Garcia, 2005. "Barreiras À Entrada Em Mercados Monopolizados: A Distribuição De Automóveis," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] 104, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2005:104
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    File URL: http://www.anpec.org.br/encontro2005/artigos/A05A104.pdf
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    References listed on IDEAS

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    1. Timothy F. Bresnahan & Peter C. Reiss, 1990. "Entry in Monopoly Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(4), pages 531-553.
    2. Smith, Richard L, II, 1982. "Franchise Regulation: An Economic Analysis of State Restrictions on Automobile Distribution," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 125-157, April.
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    More about this item

    JEL classification:

    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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    1. Studies on the automobile industry

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