The determinants of dealership structure: Empirical analysis of the Chinese auto market

doi:10.1016/j.jce.2016.04.001

CORC > 上海财经大学 > 上海财经大学

	The determinants of dealership structure: Empirical analysis of the Chinese auto market
	Xiao, Junji 1; Ju, Heng 2
刊名	JOURNAL OF COMPARATIVE ECONOMICS
	2016-11
卷号	44 期号:4 页码:961-981
关键词	Chinese auto industry Bivariate probit model Intra-brand competition Vertical relations
ISSN号	0147-5967
DOI	10.1016/j.jce.2016.04.001
英文摘要	This paper investigates the factors that affect manufacturers' decisions to grant local monopoly to a dealer and the factors that determine the dealer's status of sole dealership in the Chinese automobile market. Our empirical findings suggest that manufacturer decisions depend on dealers' retail network: manufacturers are inclined to choose a sole dealer for their brands if that dealer also has retail outlets for substitute brands in the local market and to choose multiple dealers otherwise. These findings can be explained by the theory proposed by [Mathewson, G. F., Winter, R. A., 1994. Territorial restrictions in franchise contracts. Economic Inquiry 32 (2), 181-192.], who suggest that manufacturers transfer the exclusive right of resale from themselves to dealers only if dealers' contribution is crucial to the vertical relationship. When dealers also have extensive retail channels for other brands, their retail efforts and experience become crucial to brand success, and thus manufacturers are more likely to offer them sole resale rights. Moreover, our empirical findings suggest that manufacturers also consider product quality and market conditions when making their decisions. Journal of Comparative Economics 44(1) (2016) 961-981. Department of Decision Sciences & Managerial Economics, Chinese University of Hong Kong, Hong Kong, China; School of International Business Administration, Shanghai University of Finance and Economics, China. (C) 2016 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ACADEMIC PRESS INC ELSEVIER SCIENCE
WOS记录号	WOS:000389095700008
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1177]
专题	上海财经大学
通讯作者	Ju, Heng
作者单位	1.Chinese Univ Hong Kong, Dept Decis Sci & Managerial Econ, Hong Kong, Hong Kong, Peoples R China; 2.Shanghai Univ Finance & Econ, Sch Int Business Adm, Shanghai, Peoples R China
推荐引用方式 GB/T 7714	Xiao, Junji,Ju, Heng. The determinants of dealership structure: Empirical analysis of the Chinese auto market[J]. JOURNAL OF COMPARATIVE ECONOMICS,2016,44(4):961-981.
APA	Xiao, Junji,&Ju, Heng.(2016).The determinants of dealership structure: Empirical analysis of the Chinese auto market.JOURNAL OF COMPARATIVE ECONOMICS,44(4),961-981.
MLA	Xiao, Junji,et al."The determinants of dealership structure: Empirical analysis of the Chinese auto market".JOURNAL OF COMPARATIVE ECONOMICS 44.4(2016):961-981.