The Role of Wholesalers in International Distribution: Transaction Cost Effects

Tamara Todorova () and Ivan Iliev

EconStor Conference Papers from ZBW - Leibniz Information Centre for Economics

Abstract: The paper focuses on the role of wholesaling in the establishment of international distribution channels with respect to the transaction costs associated with the sale of goods on the international market. The first part of the paper is devoted to the peculiarities and conditions of the domestic market and the participation in it of domestic wholesalers. The main idea is that of the necessity of wholesaling in terms of transaction cost reduction. A model is presented revealing a distribution channel with and without an intermediary as a link between the producers and the retailers. The paper argues that wholesalers have a vital role in bringing down the costs of transacting as well as in the proper and efficient functioning of the very distribution channel. The second part of the paper discusses the international market in its complexity and size compared to local markets. This is done in the context of the transaction costs faced by large international corporations. The focus is again on these costs which turn out to be the reason for firms to internalize their market operations expanding thus their size.

Keywords: transaction costs; wholesaling; international distribution (search for similar items in EconPapers)
JEL-codes: D23 F18 M21 M31 (search for similar items in EconPapers)
Date: 1999
Note: In memory of Associate Professor Ivan Iliev.
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/157660/1/T ... l%20Distribution.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:esconf:157660

Access Statistics for this paper

More papers in EconStor Conference Papers from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().