The dealership franchise laws were originally enacted, at least partly in good faith, to reduce the perceived power imbalance between large corporations and small local businesses—the supposed backbone of America—but produced the opposite effect by entrenching dealer power.

causalpending

Speaker

Michael Munger

Evidence Quote

state laws that were designed I think in some ways in good faith to reduce the power imbalance between large corporations and these small businesses the small local businesses that are the backbone of America

Source

Michael Munger on Franchising, Vertical Integration, and the Auto Industry 06/22/2009EconTalk
Created: 6/17/2026, 10:31:26 AM

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