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Effects of wholesaler concentration on retailers by format: evidence from Japanese brand-level price data

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  • Kenji Matsui

Abstract

Using unique brand-level wholesale price data, this article examines how purchase prices of commodities for retailers are influenced by wholesale concentration. Compared with studies focusing on retail prices, little empirical work has measured the impact of wholesale concentration on wholesale prices. Economic theory suggests that the sensitivity of purchase price in response to degree of wholesale concentration is smaller for large retail formats than for small retail formats in the presence of intra-format retail competition. To test the validity of the theoretical implication, I measure the impact of the concentration on purchasing prices for retailers by format. Empirical findings support the hypothesis that the large retail format tends to draw advantageous purchase prices when wholesalers become increasingly oligopolistic.

Suggested Citation

  • Kenji Matsui, 2010. "Effects of wholesaler concentration on retailers by format: evidence from Japanese brand-level price data," Applied Economics, Taylor & Francis Journals, vol. 42(18), pages 2379-2391.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:18:p:2379-2391
    DOI: 10.1080/00036840701858042
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    References listed on IDEAS

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    Cited by:

    1. Kenji, Matsui, 2011. "Resale price maintenance for supply chains distributing products with demand uncertainty," International Journal of Production Economics, Elsevier, vol. 134(2), pages 375-387, December.
    2. Matsui, Kenji, 2010. "Returns policy, new model introduction, and consumer welfare," International Journal of Production Economics, Elsevier, vol. 124(2), pages 299-309, April.

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