The Cost of Distribution

Malenbaum, Wilfred

doi:10.2307/1882061

Cited by 7 publications

(2 citation statements)

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“…In 1929, the United States conducted a census of distribution to determine its cost. Estimates were reported in Galbraith and Black (1935), Malenbaum (1941), and Stewart and Dewhurst (1939). Shaw (1990) summarizes these estimates and discusses how they fueled an ongoing debate about the height of the distribution bill.…”

Section: Introductionmentioning

confidence: 99%

The provision of convenience and variety by the market

Bronnenberg

2015

The RAND J of Economics

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Consumers commonly face purchasing costs, for example, travel or wait time, that are fixed to quantity but increase with variety. This article investigates the impact of such costs on the demand and supply of variety. Purchasing costs limit demand for variety like prices limit demand for quantity. When demand for variety is low, manufacturers generally invest substantially in lowering purchasing costs, to attract consumers. In the monopolistic competition free-entry equilibrium, providing convenience increases the demand for variety, but its costs reduce supply. The desirability of nonprice competition in convenience and its implications for variety and market concentration are discussed.

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Section: Introductionmentioning

confidence: 99%

The provision of convenience and variety by the market

Bronnenberg

2015

The RAND J of Economics

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“…(Shaw 1912, emphasis added) The essence of the distribution sector translates into its prominent size. Using the data from the first census of the U.S. Distribution sector in 1929, Malenbaum (1941) estimated that the share of distribution in the final price of manufactured goods was about 51 percent. The prominence of distribution in today's economy is equally obvious.…”

Section: Introductionmentioning

confidence: 99%