1994 Fiscal Year Final Research Report Summary
THE STRUCTURE AND FUNCTION OF DISTRIBUTION SYSTEM : A THEORETICAL AND EMPIRICAL ANALYSIS
| Project/Area Number |
05451105
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| Research Category |
Grant-in-Aid for General Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Research Field |
経済理論
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| Research Institution | University of Tokyo |
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Principal Investigator |
ITOH Motoshige UNIVERSITY OF TOKYO,ECONOMICS,PROFESSOR, 経済学部, 教授 (10128564)
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| Project Period (FY) |
1993 – 1994
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| Keywords | distribution system / business practice / reguiations / rebate system / price |
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| Research Abstract |
The purpose of this study is to analyze the structure and the function of the Japanese distribution system and to have better understanding of the economic mechanism of distribution system in general. I picked up five cases for my empirical analysis : these five cases are typical consumers' goods, namely home electric appliances, garments, processed foods, cosmetic products and home medicines.
We can observe various kinds of complicated business practices such as consignment and rebate system in the distribution system. These practices have some reasons to emerge, and I analyzed what are the economic rationale behind these practices and how they have evolved in the past. Although there are some similar characteristics among the five cases, they also have many differences. The nature of products distributed affects the style of business practices considerably.
I also analyzes how the prices are determined in the distribution system. Here, by prices I mean not only retail prices but also wholesale prices. The relation between wholesale prices and retail prices is quite important to understand the function of distribution system. The manufacturers often manipulate these prices in order to promote their sales. High retail margin, for example, gives incentives for retailers to sell the products.
There are various kinds of regulation measures used in the distribution system. I discuss the effects of these regulations on the function of distribution system. They often work as barriers to entry and are responsible for high prices. I also discuss anti-monopoly law issues, which attract much attention recently.
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