AUTOMAKER AND DEALERS - A STUDY OF CRIMINOGENIC MARKET FORCES (FROM WHITE-COLLAR CRIME - OFFENSES IN BUSINESS, POLITICS, AND THE PROFESSIONS. REV. ED., 1977 BY GILBERT GEIS AND ROBERT F MEIER - SEE NCJ-40489)

• NCJ Number: 40491
• Author(s): W N LEONARD; M G WEBER
• Date Published: 1977
• Length: 16 pages
• Corporate Author: Free Press
• Publication Format: Document
• Language: English
• Country: United States of America

Annotation

INSUFFICIENT ATTENTION HAS BEEN FOCUSED ON THE EXTENT TO WHICH MARKET STRUCTURE - THAT IS, THE ECONOMIC POWER AVAILABLE TO CERTAIN CORPORATIONS IN CONCENTRATED INDUSTRIES - MAY GENERATE CRIMINAL CONDUCT.

Abstract

CONCENTRATED MARKET STRUCTURE GENERATES EXCESSIVE POWER IN THE HANDS OF A FEW CORPORATIONS WHICH CAN USE IT AGAINST SUPPLIERS, DISTRIBUTORS, AND CUSTOMERS AND CREATE CONDITIONS CONDUCIVE TO CORPORATE PROFITS WHICH MAY, HOWEVER, INDUCE THOSE WITH WHOM THE CORPORATIONS DEAL DIRECTLY - E.G. DISTRIBUTORS - TO ENGAGE IN UNETHICAL ACTIVITY AGAINST THE PUBLIC. THE HIGH CONCENTRATION IN THE AUTOMOBILE INDUSTRY, PLUS ENTRY BARRIERS ERECTED BY CAPITAL COSTS, SCALE ECONOMIES, AND PRODUCT DIFFERENTIATION GIVES THE BIG THREE CAR COMPANIES ABNORMALLY HIGH PROFIT RATES AND GREAT MARKET POWER. THE INTENSE EMPHASIS ON NEW CAR SALES OFTEN LEADS DEALERS TO SELL CARS FOR LOW MARGINS AND THEN ENDEAVOR TO RECOUP BY LARGE MARKUPS ON USED CARS, OVERCHARGING FOR REPAIRS, HIGH FINANCING, PARTS PUSHING, AND FORCING OF (UNORDERED) NEW CAR ACCESSORIES. THEREFORE, THE FREQUENT UNETHICAL ACTIONS OF DEALERS AND SERVICE MECHANICS MUST LARGELY BE REGARDED AS COERCED OCCUPATIONAL CRIME RESULTING FROM A MARKET STRUCTURE IN THE AUTOMOTIVE INDUSTRY WHICH PROVIDES THE AUTO-MAKER WITH POTENTIAL AND APPLIED CRIMINOGENIC POWER....ELW