1,000 Cash Back: The Pass-Through of Auto Manufacturer Promotions

Automobile manufacturers frequently use promotions involving cash incentives. While payments are nominally directed to either customers or dealers, the ultimate beneficiary of the promotion depends on the outcome of price negotiation. We use program evaluation methods to compare the incidence of the...

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Bibliographic Details
Published in:The American economic review 2006-09, Vol.96 (4), p.1253-1270
Main Authors: Busse, Meghan, Silva-Risso, Jorge, Zettelmeyer, Florian
Format: Article
Language:English
Subjects:
Automobile dealers
Automobile industry
Automobiles
Bargaining
Comparative studies
Consumers
Customers
Expenditures
Hypotheses
Incentives
Motor cars
Packaged goods
Payments
Prices
Program evaluation
Rebates
Sales promotions
Subsidies
Vouchers
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