Jalopnik: Automakers say franchise laws go too far


Equally as bad as monopoly? Monopsony. This is when a producer only has one customer to sell to, giving that customer outsize ability to dictate terms. Realistically, dealers create monopsony power which is bad for manufacturers, though dealer protections may have been needed in the low-information days of the early 20th century. Now, though, manufacturers are starting to realize that they stand to gain if they have more sales channels with which to reach their ultimate customer. Siding with Tesla on this one doesn’t sound like such a bad idea.


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