Cars are special. They have some of the same issues other high-priced items that you buy occasionally and are a pain to shop for. Think mattresses, tires, and homes. There's information asymmetry, and actual comparison shopping is hassle. This is a setup for painful buying experiences.
With cars, lots of states also restrict manufacturers from selling directly to consumers. I guess it helps with competition at the consumer level, but manufacturers still have leverage over dealers (see This American Life #513).
With real estate, NAR only just (in 2024) got in trouble for price fixing commissions.
Cars are special. They have some of the same issues other high-priced items that you buy occasionally and are a pain to shop for. Think mattresses, tires, and homes. There's information asymmetry, and actual comparison shopping is hassle. This is a setup for painful buying experiences.
With cars, lots of states also restrict manufacturers from selling directly to consumers. I guess it helps with competition at the consumer level, but manufacturers still have leverage over dealers (see This American Life #513).
With real estate, NAR only just (in 2024) got in trouble for price fixing commissions.