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An economic analysis of Japanese distribution systems

โœ Scribed by Atsuo Utaka

Publisher
John Wiley and Sons
Year
2003
Tongue
English
Weight
114 KB
Volume
24
Category
Article
ISSN
0143-6570

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โœฆ Synopsis

Abstract

We investigate Japanese distribution systems by using a successive monopoly model in which the dealer can increase demand for the commodity. We compare the Tatene system (TS) with the open price system (OPS), and show that in cases where the dealer's power of sales promotion is small (large), the total profits obtained through TS become larger (smaller) than those of the OPS. This result justifies the actual change from TS to OPS from an economic point of view. Copyright ยฉ 2003 John Wiley & Sons, Ltd.

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