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The Myth of Fair Prices: A Graphical Analysis

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  • Dennis Yanchus
  • Xavier de Vanssay

Abstract

The issues of fair trade and in particular fair price policies, have been neglected in most international trade courses. The authors show how the latter can be explained to undergraduate students applying the simple graphical methods normally used in general equilibrium trade theory. They show that fair pricing strategies can be looked upon as a suboptimal device for redistributing the gains from trade as compared with a transfer of funds.

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File URL: http://hdl.handle.net/10.1080/00220480309595218
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of Economic Education.

Volume (Year): 34 (2003)
Issue (Month): 3 (January)
Pages: 235-240

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Handle: RePEc:taf:jeduce:v:34:y:2003:i:3:p:235-240

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Web page: http://www.tandfonline.com/VECE20

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Web: http://www.tandfonline.com/pricing/journal/VECE20

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Cited by:
  1. Leonardo Becchetti & Stefano Castriota & Melania Michetti, 2013. "The effect of fair trade affiliation on child schooling: evidence from a sample of Chilean honey producers," Applied Economics, Taylor & Francis Journals, vol. 45(25), pages 3552-3563, September.
  2. Patrice Cailleba & Herbert Casteran, 2010. "Do Ethical Values Work? A Quantitative Study of the Impact of Fair Trade Coffee on Consumer Behavior," Journal of Business Ethics, Springer, vol. 97(4), pages 613-624, December.
  3. Gaëlle BALINEAU, 2012. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," Working Papers P39, FERDI.
  4. Elisabeth Nindl, 2014. "An empirical assessment of Fairtrade: A perspective for low- and middle-income countries?," Department of Economics Working Papers wuwp160, Vienna University of Economics, Department of Economics.
  5. Ling-po Shiu & Chor-yiu Sin, 2006. "Top-down, middle-out, and bottom-up processes: A cognitive perspective of teaching and learning economics," International Review of Economic Education, Economics Network, University of Bristol, vol. 5(1), pages 60-72.
  6. repec:pdn:wpaper:43 is not listed on IDEAS
  7. Leonardo Becchetti & Stefano Castriota & Nazaria Solferino, 2011. "Development Projects and Life Satisfaction: An Impact Study on Fair Trade Handicraft Producers," Journal of Happiness Studies, Springer, vol. 12(1), pages 115-138, March.
  8. Mann, Stefan, 2008. "Analysing fair trade in economic terms," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 2034-2042, October.
  9. Balineau, Gaëlle, 2013. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," World Development, Elsevier, vol. 44(C), pages 241-255.
  10. Gaëlle BALINEAU, 2012. "Disentangling the Effects of Fair Trade on the Quality of Malian Cotton," Working Papers P39, FERDI.

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