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Guaranteed Market Share Arrangements in Passenger Motor Vehicles

Author

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  • Peter L. Swan

    (Australian National University. I alone am responsible for the views contained in this paper. It is based on evidence I presented on behalf of the Australian Federation of Consumer Organizations (AFCO) to the IAC inquiry into Passenger Motor Vehicles on 9th August 1977. However, the presentation has been modified and extended in its current form. I would like to thank AFCO for its support and also E. Sieper for comments on an earlier draft.)

Abstract

The Australian Government has requested the Industries Assistance Commission to report on means of implementing its policy of a guaranteed market share, equal to 80% of the total market by volume, for domestic producers of passenger motor vehicles. This paper examines some of the costs associated with this policy and concludes that the consumer cost is of the order of $170 per family per annum. If import quotas are to be imposed, then a preferred means of implementing the Government's policy is via the sale of quotas, compared with the present system under which quotas are allocated as gifts.

Suggested Citation

  • Peter L. Swan, 1977. "Guaranteed Market Share Arrangements in Passenger Motor Vehicles," Australian Journal of Management, Australian School of Business, vol. 2(2), pages 149-160, October.
    • Handle: RePEc:sae:ausman:v:2:y:1977:i:2:p:149-160
    DOI: 10.1177/031289627700200204
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    Cited by:

    1. Christopher C. Findlay & Robert L. Jones, 1982. "The Marginal Cost of Australian Income Taxation," The Economic Record, The Economic Society of Australia, vol. 58(3), pages 253-262, September.

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