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| Author: | Brenkers, R. Verboven, F. |
| Title: | Liberalizing a distribution system: the European car market |
| Journal: | Journal of the European Economic Association
2006 : MAR, VOL. 4:1, p. 216-251 |
| Index terms: | car industry distribution europe liberalization oligopoly prices |
| Language: | eng |
| Abstract: | This article discusses the competitive effects of liberalizing the selective and exclusive distribution system in the European car market, based on a model of oligopoly pricing with differentiated products. The authors find that the reduction in international price discrimination mainly redistributes consumer gains across countries. This implies that international price discrimination, and softening competition through a double marginalization mechanism, should not be interpreted as main profit motives for the previous distribution system. |
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