>Yes, those who manipulate the legislature to do rent seeking, might lose those profits when the law is removed. That is actually a feature, not a problem.
As I said, independent dealers provide liquidity to the auto market. When there is only one buyer or seller in any other case, we call it price gouging or price fixing. Additionally, the "extra profits" or savings (in some cases) actually do contribute to maximum satisfaction of consumers. For example, if the only dealers were run by manufacturers then they could unilaterally decide that cars over 5 years old will never be repurchased, dooming those deals to private transactions with zero warranty, or else second-tier used-only retailers.
>Again, independent economists and the Dept of Justice don't agree with you.
Again, appeals to authority do nothing for me. You can probably find at least someone in the DOJ to adopt any opinion you like in any case.
>...When there is only one buyer or seller in any other case, we call it price gouging or price fixing.
Having one buyer or seller of a product or service is neither called "price gouging" or "price fixing".
>...Additionally, the "extra profits" or savings (in some cases) actually do contribute to maximum satisfaction of consumers.
There is really no evidence of that. (The basic concept of rent seeking is covered in any econ101 micro textbook.)
>...For example, if the only dealers were run by manufacturers then they could unilaterally decide that cars over 5 years old will never be repurchased, dooming those deals to private transactions with zero warranty, or else second-tier used-only retailers.
What a strange idea.
>...Again, appeals to authority do nothing for me.
>Having one buyer or seller of a product or service is neither called "price gouging" or "price fixing".
If you want to be technical, yes. But the two go hand in hand. We have laws to promote competition and the law requiring manufacturers to not sell directly to consumers is one of them. Even if this is technically rent-seeking, it isn't very bad.
>What a strange idea.
It may sound strange but manufacturers have a tendency toward planned obsolescence. They make things to wear out in obnoxious and expensive ways, and restrict access to parts, so far as the law will allow. Nevertheless resale value is important for cars, independent dealers improve market efficiency and the liquidity of cars, etc. I believe manufacturers would abuse their position as exclusive dealers of their products. Tesla sure has.
As I said, independent dealers provide liquidity to the auto market. When there is only one buyer or seller in any other case, we call it price gouging or price fixing. Additionally, the "extra profits" or savings (in some cases) actually do contribute to maximum satisfaction of consumers. For example, if the only dealers were run by manufacturers then they could unilaterally decide that cars over 5 years old will never be repurchased, dooming those deals to private transactions with zero warranty, or else second-tier used-only retailers.
>Again, independent economists and the Dept of Justice don't agree with you.
Again, appeals to authority do nothing for me. You can probably find at least someone in the DOJ to adopt any opinion you like in any case.