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Japanese Distribution System in the Automobile Industry
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captive imports common value competition competition-dumping effect completely exclusive consumer surplus contract Cournot competition declines degree of product distribution channels distribution margins distribution system occurs domestic country domestic firm domestic firm's profit domestic government domestic product domestic social welfare Economic efficiency rent equilibrium distribution system exclusive dealership arrangements expected value externality effect fixed sunk cost foreign firm foreign firm's profit foreign manufacturers foreign product high sunk cost imported automobiles imported product integrated dealer investment Japan Japanese automobile industry Japanese distribution system Japanese manufacturers joint profit low sunk cost market share Motors Nash equilibrium networks non-exclusive dealerships number of dealers parallel importers partially exclusive percent prefers a non-exclusive price differences prices of imported private value specific producer surplus product differentiation production cost products are highly reduces retail prices sales volume sales-distribution Keiretsu sell sole representative importers strategy Table Toyota unit distribution cost unit subsidy unit tax variance welfare is highest