Perfect Substitutes: A Note On The Alchian-Allen Hypothesis
AbstractAlchian and Allen hypothesized that a country will export high rather than low quality goods. Here we show that if the inherent attributes of the commodities are identical the country will only export the high-quality good.
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Bibliographic InfoPaper provided by Montana State University, Department of Agricultural Economics and Economics in its series Trade Research Center Research Discussion Papers with number 29245.
Date of creation: 1998
Date of revision:
transport costs; patterns of trade; product quality; International Relations/Trade; F1;
Find related papers by JEL classification:
- F1 - International Economics - - Trade
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- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
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