To capture the changes in the market structure of Japanese fresh vegetables, it is necessary to assume the oligopolistic condition. This study proposes the quantitative analysis framework of wholesale markets in the pricing of Japanese fresh vegetables. First, we estimate the degree of market power between producers and retailers based on a bilateral oligopoly model. Second, we evaluate the role of wholesale markets and the effect on the economic welfare. The results show that if the ratio of products via wholesale markets decreases in volume, the ratio of wholesale price to retail price decreases. W-holesale markets can benefit both producers and consumers through a reduction of retail margins.
