TY - JOUR AU - Knetter,Michael M. TI - Why are Retail Prices in Japan so High?: Evidence from German Export Prices JF - National Bureau of Economic Research Working Paper Series VL - No. 4894 PY - 1994 Y2 - October 1994 UR - http://www.nber.org/papers/w4894 L1 - http://www.nber.org/papers/w4894.pdf N1 - Author contact info: Michael M. Knetter School of Business University of Wisconsin, Madison 5110 Grainger Hall 975 University Avenue Madison, WI 53706-1323 Tel: 608/262-1758 Fax: NA E-Mail: mike.knetter@supportuw.org M2 - featured in NBER digest on 1995-06-01 AB - 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. ER -