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We analyze the effects of accidents and liability obligations on the incentives of car manufacturers to monopolize the markets for their spare parts. We show that monopolized markets for spare parts lead to higher overall expenditures for consumers. Furthermore, while the manufacturers invest...
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We analyze the effects of accidents and liability obligations on the incentives of car manufacturers to monopolize the markets for their spare parts. We show that monopolized markets for spare parts lead to inefficiently high prices for spare parts. Furthermore, monopolization induces the...
Persistent link: https://www.econbiz.de/10011498651
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We analyze the effects of accidents and liability obligations on the incentives of car manufacturers to monopolize the markets for their spare parts. We show that monopolized markets for spare parts lead to higher overall expenditures for consumers. Furthermore, while the manufacturers invest...
Persistent link: https://www.econbiz.de/10014218316
Persistent link: https://www.econbiz.de/10010468659
effect on volume of trade, allocations, and the primary market. Aggregate effects on consumer surplus and welfare are …
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