NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Why are Retail Prices in Japan so High?: Evidence from German Export Prices

Michael M. Knetter

NBER Working Paper No. 4894
Issued in October 1994
NBER Program(s):   IFM   ITI

It is well documented that retail prices in Japan are higher than in other countries for similar products. The two main competing explanations for this finding are: (1) a relatively high degree of discriminatory practices against imports and (2) relatively high distribution costs associated with getting goods to the point of final sale in Japan. The first of these explanations implies that foreign exporters should charge higher prices on shipments to Japan than elsewhere, provided at least some of the rent associated with restrictive practices can be captured by the exporter. For the vast majority of the 37 7-digit German export industries studied here, the data are consistent with this implication. Prices on shipments to Japan appear to be significantly higher than prices on shipments to the United States, the United Kingdom, and Canada.

download in pdf format
   (308 K)

email paper

This paper is available as PDF (308 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4894

Published: International Journal of Industrial Organization (August 1997): 549-572.

Users who downloaded this paper also downloaded these:
Goldberg and Knetter w5862 Goods Prices and Exchange Rates: What Have We Learned?
Krugman w1926 Pricing to Market when the Exchange Rate Changes
Dornbusch w1769 Exchange Rates and Prices
Haskel and Wolf w8112 The Law of One Price - A Case Study
Cumby w5675 Forecasting Exchange Rates and Relative Prices with the Hamburger Standard: Is What You Want What You Get With McParity?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us