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

Gerald Bodisch
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Gerald Bodisch: Economic Analysis Group, Antitrust Division, U.S. Department of Justice

No 200901CA, EAG Competition Advocacy Papers from Department of Justice, Antitrust Division

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.

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Date: 2009-05
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