EU Commission versus Volkswagen: New evidence on price defferentiation in the European car market
Journal
Review of Industrial Organization
ISSN
0889-938X
ISSN-Digital
1573-7160
Type
journal article
Date Issued
2000-11-01
Author(s)
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.
Language
English
Keywords
price differentiation
Europe
car market
Volkswagen
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Kluwer
Publisher place
Dordrecht
Volume
17
Number
3
Start page
313
End page
323
Pages
11
Subject(s)
Division(s)
Eprints ID
10578