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| Author: | Langlois, C. |
| Title: | For profit or for market share? The pricing strategy of Japanese automarkets on the U. S. market |
| Journal: | Journal of the Japanese and International Economies
1997 : MAR, VOL. 11:1, p. 55-81 |
| Index terms: | JAPAN PROFIT MARKET SHARE |
| Language: | eng |
| Abstract: | The rapid penetration of the U.S. automobile market by Japanese automakers has raised questions about Japanese versus U.S. pricing practices. Is it true that "Detroit is following the old rule... maximize profits on each car rather than sell more cars" while Japanese firms seek expansion even if it comes at the expense of profitability? Or could it be that Japanese penetration of the U.S. market is compatible with short run profit maximizing prices? To examine Japanese pricing behaviour on the U.S. market the short run is defined as the selling time of inventory on hand. |
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