| 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 © 2003 John Wiley & Sons, Ltd. |
