Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers
State franchise laws prohibit auto manufacturers from making sales directly to consumers. This paper advocates eliminating state bans on direct manufacturer sales in order to provide automakers with an opportunity to reduce inventories and distribution costs by better matching production with consumer preferences.
|Date of creation:||May 2009|
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- Carlton, Dennis W & Chevalier, Judith A, 2001.
"Free Riding and Sales Strategies for the Internet,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 49(4), pages 441-61, December.
- Eckard, E Woodrow, Jr, 1985. "The Effects of State Automobile Dealer Entry Regulation on New Car Prices," Economic Inquiry, Western Economic Association International, vol. 23(2), pages 223-42, April.
- 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 125-57, April.
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