The New Legal Framework for Car Distribution

Business & Finance, Management & Leadership, Industrial Management
Cover of the book The New Legal Framework for Car Distribution by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel ISBN: 9783638382687
Publisher: GRIN Publishing Publication: June 1, 2005
Imprint: GRIN Publishing Language: English
Author: Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
ISBN: 9783638382687
Publisher: GRIN Publishing
Publication: June 1, 2005
Imprint: GRIN Publishing
Language: English

Seminar paper from the year 2004 in the subject Economics - Industrial Economics, grade: 1.0, Otto Beisheim School of Management Vallendar (Institute for Industrial Organization), course: Strategic Competition and European Competition Policy, 61 entries in the bibliography, language: English, abstract: The present paper discusses the new legal framework for the automotive distribution, which has been set by regulation 1400/2002 of the European Commission, and clarifies the underlying rationale of this so-called block exemption. To this end, the relevant market has been analysed along the structure conduct performance paradigm. Additionally, the existing trends, e. g. the changing consumer preferences, the changing technological standards, and an increasing number of independent service chains, were investigated to integrate the dynamics into the model. In this context the meaning and the impact of the regulation have been detailed with respect to consumer welfare.The analyses have shown that the new regulation complies with the guiding principles of competition policy and thus fosters competition in the industry. This stands in contrast to its predecessors, which were influenced by lobbying of the car industry and had thus laid the foundation for a heavily regulated business. As shown in this paper, a leap towards increased consumer welfare has been made by weakening the market power of the industry. Among others, the separation of sales and services, the permission of multi-brand outlets and the ban of price discrimination can be named as examples for reforms brought forward in the regulation. Furthermore, the so-called location clause will be abolished as of October 2005, which means that dealerships are allowed to open new outlets anywhere in the common market without the consent of the manufacturer. However, in the course of disallowing vertical restraints, of which some had previously helped to secure efficiencies in the value chain, a relative welfare loss has also developed. For instance, the increased free-riding issues could inspire a development to the detriment of the consumer and the convergence of prices at a high level could be disadvantageous to consumers in low income member states. Although the regulation has already come a far way, the critique that is voiced at the end of this paper, shows that there is significant room for improvement, once the regulation expires in 2010. Key points are the price convergence towards the level of the high price countries, some inconsistencies in the regulation and a possible loss of intangible consumer welfare. In the end whether the additional welfare surplus outweighs the new welfare loss has to be decided on a per country basis.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2004 in the subject Economics - Industrial Economics, grade: 1.0, Otto Beisheim School of Management Vallendar (Institute for Industrial Organization), course: Strategic Competition and European Competition Policy, 61 entries in the bibliography, language: English, abstract: The present paper discusses the new legal framework for the automotive distribution, which has been set by regulation 1400/2002 of the European Commission, and clarifies the underlying rationale of this so-called block exemption. To this end, the relevant market has been analysed along the structure conduct performance paradigm. Additionally, the existing trends, e. g. the changing consumer preferences, the changing technological standards, and an increasing number of independent service chains, were investigated to integrate the dynamics into the model. In this context the meaning and the impact of the regulation have been detailed with respect to consumer welfare.The analyses have shown that the new regulation complies with the guiding principles of competition policy and thus fosters competition in the industry. This stands in contrast to its predecessors, which were influenced by lobbying of the car industry and had thus laid the foundation for a heavily regulated business. As shown in this paper, a leap towards increased consumer welfare has been made by weakening the market power of the industry. Among others, the separation of sales and services, the permission of multi-brand outlets and the ban of price discrimination can be named as examples for reforms brought forward in the regulation. Furthermore, the so-called location clause will be abolished as of October 2005, which means that dealerships are allowed to open new outlets anywhere in the common market without the consent of the manufacturer. However, in the course of disallowing vertical restraints, of which some had previously helped to secure efficiencies in the value chain, a relative welfare loss has also developed. For instance, the increased free-riding issues could inspire a development to the detriment of the consumer and the convergence of prices at a high level could be disadvantageous to consumers in low income member states. Although the regulation has already come a far way, the critique that is voiced at the end of this paper, shows that there is significant room for improvement, once the regulation expires in 2010. Key points are the price convergence towards the level of the high price countries, some inconsistencies in the regulation and a possible loss of intangible consumer welfare. In the end whether the additional welfare surplus outweighs the new welfare loss has to be decided on a per country basis.

More books from GRIN Publishing

Cover of the book Critical examination of the characteristics, tactics, opponents and policy impact of a national interest group operating in the USA today by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book The rise and downfall of Urban Blues by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Reconciling Planetary Diversity Through Transcultural Management by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Neue Medien - E-Learning in der Arbeitslehre by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Poverty in Africa - Cultural Studies by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Modeling, Control and Fault Analysis in Electromechanical Systems applicated on a Shake Table by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Sarah Orne Jewett's Place in American Realism - Jewett as a Feminist and Beyond by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Did the Internationalisation of Capital undermined the 'Golden Age' of Capitalism? by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Principles of Civil Aviation by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Thomas Jefferson and Slavery by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Max Weber's Methodological Essay on Roscher and Knies by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Bedeutung von Tests bei der Einführung von Produkten by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Market liberalization: an analysis of the Austrian electricity market by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Le roman culturel - Une lecture ethnocritique de Nnanga Kon by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
Cover of the book Leben im Netz - Philosophie und Realität by Philipp Pohlmann, Jens Finke, Jan-Dominik Gunkel
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy