Thursday, June 17, 2010
Posted by D. Daniel Sokol
Gerald R. Bodisch (Economic Analysis Group, Antitrust Division, U.S. Department of Justice) has an interesting paper on the Economic Effects of State Bans on Direct Manufacturer Sales to Car Buyers.
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.