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Resale Price Maintenance by Japanese Newspapers

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  • David Flath

    (Ritsumeikan University)

Abstract

In Japan, newspapers enjoy a special exemption from antimonopoly prohibitions against resale price maintenance (suppliers’ stipulations that bar downstream firms from price discounting). However, if a newspaper company does stipulate retail prices, it is required to set uniform prices throughout Japan. Econometric analysis here shows that Japanese newspaper subscription prices are far below the levels that would maximize joint profit, given the newspaper content. The authorized resale price maintenance seems to have a motivation other than cartelization.

Suggested Citation

  • David Flath, 2016. "Resale Price Maintenance by Japanese Newspapers," The Japanese Economic Review, Springer, vol. 67(4), pages 441-473, December.
    • Handle: RePEc:spr:jecrev:v:67:y:2016:i:4:d:10.1111_jere.12101
    DOI: 10.1111/jere.12101
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    Cited by:

    1. Flath, David, 2017. "Second-degree price discrimination by Japanese newspapers," Japan and the World Economy, Elsevier, vol. 44(C), pages 14-25.
    2. David Flath, 2021. "Japanese newspapers," International Journal of Economic Policy Studies, Springer, vol. 15(2), pages 257-299, September.

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    More about this item

    Keywords

    D4; L4;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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