Re: the dealer name decals that show up on cars sold in some places.
I was thinking about these on the way home and I can think of a few equilibria regarding these:
1) No dealer does it, because it is annoying and the first dealer to start would lose business. This would be the one I'd expect to find in a perfectly competitive market.
2) All dealers do it, because not doing it would (supposedly) immediately put you at a disadvantage. This is a bad Nash equilibria and the one I think you see in parts of the Midwest. Could also be a cooperative equilibrium.
3) Dealers for cheap cars do it, but dealers for high end cars do not. The decal is something you put up with to pay less. It's like the Salon.com "Ultramercial."
