Abstract
The textile industry of Japan improved its productivity by using power looms from the latter half of the Meiji Era. This improvement changed the consumption of textile goods in the Taisho Era. The aim of this article is firstly to describe the function of the brokers in Isesaki who sent their district's products to the big city markets. Secondly, I would like to analyze how the growth in productivity affected the market as well as the activities of wholesalers and retailers. The commission which the brokers received was raised several times in this period. This rise has been attributed to the oligopolistic structure of the broker's market, but this claim needs further examination. The third aim is to trace the activities of the brokers historically. They started dealing in the Edo Era, but we can assume their function changed overtime. The last objective is to clarify a basic principle of economic activity which affects the future choices of our society. The results of this investigation reveal that a combination of many factors led to great changes in the structure of the market. The rational behavior of entrepreneurs to seek the highest profit might have destroyed these traditional factors in society. This finding leads us to the important conclusion that the entrepreneurs in the district should have followed the principle of respecting regional welfare as well as the principle of profit maximization.
