Mike Munger, “Franchising, Vertical Integration, and the Auto Industry” (MP3 audio),

The franchise relationship in the automobile industry has had a long tradition that has been shaken up with changes in the economy.

Michael Munger of Duke University, talks with EconTalk host Russ Roberts about franchising, particularly car dealerships.

Munger highlights how the dealers used state regulations to protect their profits and how bankruptcy appears to be unraveling that strategy.

The main themes of the conversation are the incentives in the franchising relationship and the evolution of the auto industry in the United States over the last forty years.

Munger on Franchising, Vertical Integration, and the Auto Industry | EconTalk | Library of Economics and Liberty

[MP3 audio]

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David Ing blogs at coevolving.com , photoblogs at daviding.com , and microblogs at http://ingbrief.wordpress.com . See .

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