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Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers

Author

Listed:
  • Gerald R. Bodisch

    (Economic Analysis Group, Antitrust Division, U.S. Department of Justice)

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:doj:compad:200901
    as

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    File URL: https://www.justice.gov/atr/public/eag/246374.pdf
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    References listed on IDEAS

    as
    1. Dennis W. Carlton & Judith A. Chevalier, 2001. "Free Riding and Sales Strategies for the Internet," Journal of Industrial Economics, Wiley Blackwell, vol. 49(4), pages 441-461, December.
    2. 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 223-242, April.
    3. repec:adr:anecst:y:1989:i:15-16:p:18 is not listed on IDEAS
    4. Frank Mathewson & Ralph Winter, 1989. "The Economic Effects of Automobile Dealer Regulation," Annals of Economics and Statistics, GENES, issue 15-16, pages 409-426.
    5. repec:bla:jindec:v:49:y:2001:i:4:p:441-61 is not listed on IDEAS
    6. Debra J. Holt, 2003. "The Internet and Auto Sales : Benefits and Barriers," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 19(Fall 2003), pages 21-37.
    7. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Donna, Javier D. & Pereira, Pedro & Trindade, Andre & Yoshida, Renan C., 2020. "Direct-to-Consumer Sales by Manufacturers and Bargaining," MPRA Paper 105773, University Library of Munich, Germany.
    2. Francine Lafontaine & Fiona Scott Morton, 2010. "Markets: State Franchise Laws, Dealer Terminations, and the Auto Crisis," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 233-250, Summer.

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