Retailer Market Concentration, Buyer-Size Discounts and Inflation Dynamics

Mayumi Ojima, Junnosuke Shino, Kozo Ueda

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

This study considers the macroeconomic effects of retailer market concentration and buyer-size discounts on inflation dynamics. During Japan's “lost decades”, large retailers enhanced their market power, thus increasing the exploitation of buyer-size discounts in the procurement of goods. We incorporate this effect into an otherwise standard New Keynesian model. Calibrating to the Japanese economy during the lost decades, we find that these developments led to a deflation of approximately 0.1% annually.

Original languageEnglish
Pages (from-to)101-127
Number of pages27
JournalJapanese Economic Review
Volume69
Issue number1
DOIs
Publication statusPublished - 2018 Mar

ASJC Scopus subject areas

  • Economics and Econometrics

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