"One Discriminatory Rent" or "Double Jeopardy": Multicomponent Negotiation for New Car Purchases

We investigate the correlation in the profit margins negotiated between automobile customers and dealers for separate components of a new car transaction. We find that the dealer's profit margin on a new car and on the trade-in are generally negatively correlated, which suggests that customers...

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Bibliographic Details
Published in:	The American economic review 2010-05, Vol.100 (2), p.470-474
Main Authors:	Busse, Meghan R., Silva-Risso, Jorge M.
Format:	Article
Language:	English
Subjects:	Automobile dealers Automobile prices Automobiles Bargaining Coefficients COMPETITION AND MARKET STRUCTURE Consumers Customers Double jeopardy Financial margins Financial transactions Financing Gin Insurance Market structure Marketing strategies Motor cars Negotiation Negotiations Profit margins Purchasing Studies
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