
State franchise laws prohibit auto manufacturers from making sales directly to consumers. The views expressed herein are entirely those of the author and are not purported to reflect those of the United States Department of Justice. The Antitrust Division encourages independent research by its economists. I am grateful to Oliver Richard and Carl Shapiro for insightful comments and to Terry Zeng for research assistance. Beginning with papers issued in 1999, copies of individual papers are also available from the Social Science Research Network at In addition, recent papers are now available on the Department of Justice website at. To obtain a complete list of titles or to request single copies of individual papers, please write to Janet Ficco at the above mailing address or at or call (202) 307-3779. Recent EAG Discussion Paper and EAG Competition Advocacy Paper titles are listed at the end of this paper. Department of Justice, 450 5 th St., NW, Room 9446, Washington, DC 20530, or by e-mail at Comments on specific papers may be addressed directly to the authors at the same mailing address or at their e-mail address.
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Information on the EAG research program and discussion paper series may be obtained from Russell Pittman, Director of Economic Research, Economic Analysis Group, Antitrust Division, U.S. These papers are intended to stimulate discussion and criticism of economic issues related to industries and activities in which the creation and promotion of competition may replace either monopoly or government regulation or both. For an official signed copy, please contact the Antitrust Documents Group.ĮAG Competition Advocacy Papers are a vehicle for disseminating analysis from economists in the Economic Analysis Group (EAG) of the Antitrust Division concerning public policy options for the promotion of competition.

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