EU Commission versus Volkswagen: New Evidence on Price Differentiation in the European Car Market

EU Commission versus Volkswagen: New Evidence on Price Differentiation in the European Car Market This paper is motivated by the large fine the EuropeanCommission imposed on Volkswagen in January 1998 forobstructing sales to foreigners. The first partdiscusses the competitive framework in which the carsector operates, especially the exclusive dealershipsystem. This is followed by a detailed examination ofthe degree of price-differentiation across nationalmarkets by 24 major manufacturers. The evidencereveals VW and Audi not to be special cases. Thisfinding implies that the Commission should reconsiderits own block exemption if it wants to establisha more competitive car market along the principles ofthe Common Market. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

EU Commission versus Volkswagen: New Evidence on Price Differentiation in the European Car Market

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2000 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007883519708
Publisher site
See Article on Publisher Site

Abstract

This paper is motivated by the large fine the EuropeanCommission imposed on Volkswagen in January 1998 forobstructing sales to foreigners. The first partdiscusses the competitive framework in which the carsector operates, especially the exclusive dealershipsystem. This is followed by a detailed examination ofthe degree of price-differentiation across nationalmarkets by 24 major manufacturers. The evidencereveals VW and Audi not to be special cases. Thisfinding implies that the Commission should reconsiderits own block exemption if it wants to establisha more competitive car market along the principles ofthe Common Market.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Oct 16, 2004

References

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